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What makes Personal Income Taxes progressive? The case of Belgium

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Listed:
  • André Decoster

  • Isabelle Standaert
  • Christian Valenduc
  • Guy Van Camp

Abstract

In this paper we investigate the progressivity impact of various components of the Belgian personal income tax system, before and after a major reform of this system. The reform reduced the top tax rates, broadened the tax base and increased tax credits. We show that, contrary to the opinion, commonly expressed in public debates, the reform did not reduce the liability progression of the system and that the rate structure is relatively unimportant in explaining progressivity.

Suggested Citation

  • André Decoster & Isabelle Standaert & Christian Valenduc & Guy Van Camp, 2000. "What makes Personal Income Taxes progressive? The case of Belgium," Public Economics Working Paper Series ces0008, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
    • Handle: RePEc:wpe:papers:ces0008
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    Cited by:

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    2. Zeynep Gizem Can & Cathal O’Donoghue & Denisa M Sologon & Darius Smith & Una Murray, 2025. "Modelling the Distributional Effects of the Cost-of-Living Crisis in Turkey and the South Caucasus: A Microsimulation Analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 18(3), pages 26-49.
    3. Vaqar Ahmed & Cathal O'Donoghue, 2009. "Redistributive Effect of Personal Income Taxation in Pakistan," Working Papers 0143, National University of Ireland Galway, Department of Economics, revised 2009.
    4. Li, Yali & Marquez, Ronald & Xie, Luhua & Li, Xinyi, 2025. "Evaluating the impact of special additional deductions policy on urban-rural household vulnerability: Insights from China Family Panel Studies," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 839-857.
    5. André DECOSTER & Guy VAN CAMP, 2000. "Redistributive Effects of the Shift from Personal Income Taxes to Indirect Taxes: Belgium 1988-1993," Working Papers of Department of Economics, Leuven ces0007, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    6. Jorge Onrubia & Fidel Picos-Sánchez & María Carmen Rodado, 2014. "Rethinking the Pfähler–Lambert decomposition to analyse real-world personal income taxes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(4), pages 796-812, August.

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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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