How do services of owner-occupied housing affect income inequality and redistribution?
This paper aims at analyzing the redistributive impact that the inclusion of imputed rental market value of owner-occupied housing would have when quantifying ability to pay, rather than the legal imputation that considers cadastral values. We consider the Spanish Personal Income Tax as reference, due to the differential treatment that provides to this type of income, together with the higher percentages of ownership for primary residence in Spain. The analysis is carried out through a micro-simulation exercise in which different scenarios are proposed. Our results show that the measurement of income including market value incomes resulting from actual or potential use of significantly modifies income inequality and IRPF progressivity and redistribution.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ecineq.org|
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- Luis Ayala Cañón(1) & Jorge Onrubia Fernández(2) & María del Carmen Rodado Ruiz, . "El Tratamiento De Las Fuentes De Renta En El Irpf Y Su Influencia En La Desigualdad Y La Redistribución," Working Papers 25-06 Classification-JEL , Instituto de Estudios Fiscales.
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