The Dual Tax As A Flat Tax With A Surtax On Labour Income
. Flat tax and dual tax are alternative models for traditional global income taxes with progressive rates. Although there are significant differences between them, a dual tax characterised by a general base, where all income is taxed at a proportional rate, and a personal base, composed only of labour income and taxed according to a progressive schedule that includes a wide zero-rate bracket, could be deemed a flat tax with a surtax on high labour income. A microsimulation exercise applied to Spain confirms that under equal-yield assumption most individuals would only be taxed on the general base, in the same way as a flat tax. The personal base increases progressivity and redistributive effect.
|Date of creation:|
|Contact details of provider:|| Postal: Avda. Cardenal Herrera Oria, 378, 28035 Madrid|
Web page: http://www.ief.es
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hpe:wpaper:y:2003:i:4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Belén Miquel Burgos)
If references are entirely missing, you can add them using this form.