Redistributive Effects and Unequal Income Tax Treatment.
Decomposing the post-tax Gini coefficient across groups of pre-tax equals reveals the separate contributions to the redistributive effect of an income tax of (1) the effective schedule (the vertical effect), (2) the unequal treatment of equals arising from departures from this effective schedule (the horizontal effect), and (3) the reranking of unequals as a result of such departures (the reranking effect). The methodology is applied to U.K. microdata. Throughout the period 1978-91, reranking understates the (negative) contribution to redistributive effect of unequal tax treatment by about one third and is far outweighed by the vertical effect. Copyright 1994 by Royal Economic Society.
Year of publication: |
1994
|
---|---|
Authors: | Aronson, J Richard ; Johnson, Paul ; Lambert, Peter J |
Published in: |
Economic Journal. - Royal Economic Society - RES, ISSN 1468-0297. - Vol. 104.1994, 423, p. 262-70
|
Publisher: |
Royal Economic Society - RES |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Inequality Decomposition Analysis and the Gini Coefficient Revisited.
Lambert, Peter J, (1993)
-
How to Integrate Corporate and Personal Income Taxation.
Schwartz, Eli, (1972)
-
(Non)equivalence in a Federalism: Dual Tax Shares, Flypaper Effects and Leviathan.
Aronson, J Richard, (1996)
- More ...