Positional equity and equal sacrifice: design principles for an EU-wide income tax?
Conditions are explored under which a putative EU-wide layer of income tax, additional to the national income taxes of the Member States, would: (a) be horizontally equitable, taking the equals in different EU counties to be those at the same percentile points in the country-specific income distributions, assuming these to differ in logarithms by location and scale only; (b) satisfy an extended equity criterion, that of equal progression among equals; and (c) engender equal sacrifices from the citizens of each country in terms of rank-dependent and utilitarian social evaluation functions. Numerical simulations are undertaken to explore the form that such an EU-wide income tax would take and the properties it would have.
|Date of creation:||Apr 2007|
|Date of revision:||Apr 2007|
|Contact details of provider:|| Postal: P.O. Box 56, Dunedin|
Phone: +64 3 479 8725
Fax: 64 3 479 8171
Web page: http://www.business.otago.ac.nz/econ
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.:
- Berrebi, Z. M. & Silber, Jacques, 1981. "Weighting income ranks and levels : A Multiple-Parameter Generalization For Absolute and Relative Inequality Indices," Economics Letters, Elsevier, vol. 7(4), pages 391-397.
- Maria Cubel & Peter Lambert, 2002.
"Progression-neutral income tax reforms and horizontal inequity,"
Journal of Economics,
Springer, vol. 77(1), pages 1-8, December.
- Maria Cubel & Peter Lambert, 2002. "Progression-neutral income tax reforms and horizontal inequity," Journal of Economics, Springer, vol. 9(1), pages 1-8, December.
- Udo Ebert & Peter J Lambert, "undated".
"Horizontal Equity and Progession when Equivalence Scales are not Constant,"
02/02, Department of Economics, University of York.
- Udo Ebert & Peter J. Lambert, 2004. "Horizontal Equity and Progression When Equivalence Scales Are Not Constant," Public Finance Review, SAGE Publishing, vol. 32(4), pages 426-440, July.
- Cnossen,Sijbren, 2002. "Tax policy in the european union, A review of issues and options," Research Memorandum 023, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Peter J. Lambert, 2004. "Income Taxation and Equity," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 4(2), pages 39-54, July.
- Peter J. Lambert & Helen T. Naughton, 2006.
"The Equal Sacrifice Principle Revisited,"
University of Oregon Economics Department Working Papers
2006-4, University of Oregon Economics Department, revised 01 Jun 2006.
- Lambert, Peter J. & Millimet, Daniel L. & Slottje, Daniel, 2003. "Inequality aversion and the natural rate of subjective inequality," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1061-1090, May.
- Yaari, Menahem E., 1988. "A controversial proposal concerning inequality measurement," Journal of Economic Theory, Elsevier, vol. 44(2), pages 381-397, April.
- Udo Ebert, 2000. "Equivalizing Incomes: A Normative Approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(6), pages 619-640, December.
- Young, H Peyton, 1990. "Progressive Taxation and Equal Sacrifice," American Economic Review, American Economic Association, vol. 80(1), pages 253-266, March.
- John Roemer, 2006. "Review essay, “The 2006 world development report: Equity and development”," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(2), pages 233-244, August.
- Sijbren Cnossen, 2002. "Tax Policy in the European Union: A Review of Issues and Options," CESifo Working Paper Series 758, CESifo Group Munich.
- Peter J. Lambert, 2004. "Income Taxation and Equity," Working Papers 2004/4, Institut d'Economia de Barcelona (IEB).
- Dardanoni, Valentino & Lambert, Peter J., 2002. "Progressivity comparisons," Journal of Public Economics, Elsevier, vol. 86(1), pages 99-122, October.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Cholezas, Ioannis & Tsakloglou, Panos, 2007. "Earnings Inequality in Europe: Structure and Patterns of Inter-Temporal Changes," IZA Discussion Papers 2636, Institute for the Study of Labor (IZA).
When requesting a correction, please mention this item's handle: RePEc:otg:wpaper:0706. 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: (Janet Bryant)
If references are entirely missing, you can add them using this form.