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Redistributive Effects of the Shift from Personal Income Taxes to Indirect Taxes: Belgium 1988-1993

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  • André Decoster
  • Guy Van Camp

Abstract

Between 1988 and 1993 the Belgian personal income tax system and the indirect tax system have been reformed to a considerable extent. We use microsimulation models to investigate the impact of the reform on the liability progression and the redistributive effect of the combined tax system. The redistributive effect of personal income taxes decreased, notwithstanding an increase in liability progression. For indirect taxes, both the liability regressivity and the reverse redistributive effect have been enhanced. We use recently developped statistical tests to gauge the significance of the observed changes.

Suggested Citation

  • André Decoster & Guy Van Camp, 2000. "Redistributive Effects of the Shift from Personal Income Taxes to Indirect Taxes: Belgium 1988-1993," Public Economics Working Paper Series ces0007, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
    • Handle: RePEc:wpe:papers:ces0007
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    References listed on IDEAS

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    Cited by:

    1. Immervoll, Herwig & Richardson, Linda, 2011. "Redistribution Policy and Inequality Reduction in OECD Countries: What Has Changed in Two Decades?," IZA Discussion Papers 6030, Institute of Labor Economics (IZA).
    2. Koen Burggraeve & Philip Du Caju, 2003. "Reductions in employers' social security contributions in a wage norm and automatic indexing régime," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 46(4), pages 31-64.
    3. BURGGRAEVE Koen & DU CAJU Philip, 2010. "How Do Reference Values for Wages and Wage Indexing Influence the Impact of Labour Tax Reductions?," EcoMod2003 330700028, EcoMod.
    4. Ivica Urban, 2009. "Kakwani decomposition of redistributive effect: Origins, critics and upgrades," Working Papers 148, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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