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Pandemic and Progressivity

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  • Mr. Alexander D Klemm
  • Mr. Paolo Mauro

Abstract

Based on a survey of about 2,500 US resident adults, we show that people who have experienced serious illness or job loss caused by the COVID-19 pandemic, or who personally know someone who has, favor a temporary progressive levy or structural progressive tax reform to a greater extent than others in the sample, controlling for income, demographic characteristics, and other factors. People who reveal preferences for spending items (more on police, military, border protection; less on education, health, environment) that are associated with communitarian (rather than universalist) moral perspectives generally show weaker support for progressive reforms, but more communitarians change their views as a result of personal experience. The results are consistent with previous findings that economic upheavals can mold individuals’ views on policy matters.

Suggested Citation

  • Mr. Alexander D Klemm & Mr. Paolo Mauro, 2021. "Pandemic and Progressivity," IMF Working Papers 2021/024, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/024
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    Cited by:

    1. Céline Azémar & Rodolphe Desbordes & Paolo Melindi‐Ghidi & Jean‐Philippe Nicolaï, 2022. "Winners and losers of the COVID‐19 pandemic: An excess profits tax proposal," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(5), pages 1016-1038, October.
    2. Javier Olivera & Philippe Kerm, 2022. "Public support for tax policies in COVID-19 times: evidence from Luxembourg," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1395-1418, December.
    3. David Weisstanner, 2022. "COVID-19 and welfare state support: the case of universal basic income [Attitudinal polarization towards the redistributive role of the state in the wake of the COVID-19 crisis]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(1), pages 96-110.
    4. Zsoka Koczan & Alexander Plekhanov, 2024. "Scarred for Life? Recession Experiences, Beliefs and the State," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(4), pages 1074-1111, August.

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    More about this item

    Keywords

    Solidarity taxes; surcharges; surveys; attitudes; progressivity; tax reform.; WP; solidarity contribution; solidarity tax; recovery contribution; household income; income level;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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