Structural Progression Measures for Dual Income Tax Systems
The structural progression of an income tax schedule measures how liabilities change with changes in the income being taxed. This paper extends the measurement of structural progression to a pure-form dual income tax (DIT) system, which combines progressive taxation of labour income with proportional taxation of income from capital at a lower rate. Firm links are obtained between structural progression and revenue responsiveness for a DIT, and we demonstrate how structural progression measures can aid in redistributive analysis, using Nordic data to highlight problems which can stem from pretax distributional changes. We conclude with an assessment of the new theoretical and empirical work that is now required, much of which will be data driven.
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ecineq.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lambert, Peter J, 1984. "Non-equiproportionate Income Growth, Inequality, and the Income Tax," Public Finance = Finances publiques, , vol. 39(1), pages 104-18.
- Nielsen, Soren Bo & Sorensen, Peter Birch, 1997. "On the optimality of the Nordic system of dual income taxation," Journal of Public Economics, Elsevier, vol. 63(3), pages 311-329, February.
- Hutton, John P. & Lambert, Peter J., 1979. "Income tax progressivity and revenue growth," Economics Letters, Elsevier, vol. 3(4), pages 377-380.
- Thor Olav Thoresen & Annette Alstadsæter, 2008.
"Shifts in Organizational Form under a Dual Income Tax System,"
CESifo Working Paper Series
2273, CESifo Group Munich.
- Thor O. Thoresen & Annette Alstadsæter, 2010. "Shifts in Organizational Form under a Dual Income Tax System," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(4), pages 384-418, December.
- Thor O. Thoresen & Annette Alstadsæter, 2008. "Shifts in organizational form under a dual income tax system," Discussion Papers 529, Research Department of Statistics Norway.
- Dardanoni, Valentino & Lambert, Peter J., 2002. "Progressivity comparisons," Journal of Public Economics, Elsevier, vol. 86(1), pages 99-122, October.
- Hemming, Richard, 1980. "Income tax progressivity and labour supply," Journal of Public Economics, Elsevier, vol. 14(1), pages 95-100, August.
- Jakobsson, Ulf, 1976. "On the measurement of the degree of progression," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 161-168.
- Jukka Pirttilä & Håkan Selin, 2011. "Income Shifting within a Dual Income Tax System: Evidence from the Finnish Tax Reform of 1993," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 120-144, 03.
- Samuel Calonge & Oriol Tejada, 2011. "A Differential Redistributive Analysis of Bilinear Dual-Income-Tax Reforms," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 67(3), pages 193-224, September.
- Hayes, Kathy J. & Lambert, Peter J. & Slottje, Daniel J., 1995. "Evaluating effective income tax progression," Journal of Public Economics, Elsevier, vol. 56(3), pages 461-474, March.
- Bernd Genser & Andreas Reutter, 2007.
"Moving Towards Dual Income Taxation in Europe,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0717, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Sandmo, Agnar, 1983. " Progressive Taxation, Redistribution, and Labor Supply," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(3), pages 311-23.
- Hemming, R. & Keen, M. J., 1983. "Single-crossing conditions in comparisons of tax progressivity," Journal of Public Economics, Elsevier, vol. 20(3), pages 373-380, April.
- Kakwani, Nanak C, 1977. "Applications of Lorenz Curves in Economic Analysis," Econometrica, Econometric Society, vol. 45(3), pages 719-27, April.
- R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498.
- Ebert, Udo & Lambert, Peter J, 1999. "Combined Income Taxes and Tax-Benefit Systems," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 397-404, December.
When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2012-269. 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: (Maria Ana Lugo)
If references are entirely missing, you can add them using this form.