Bargain, Olivier; Dolls, Mathias; Immervoll, Herwig; … - Institute for the Study of Labor (IZA) - 2013
We assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows us to … tax policy effect aggravated income inequality by increasing the income share of the top 20% in contrast to the middle … class' share. The tax policy effect accounts for up to 29% of the total change in inequality; its contribution increases up …