This Article presents an original empirical analysis demonstrating that low-income families experience far greater income fluctuations than higher-income families and, as a result, taxation of annual income disproportionately burdens low-income families. The author proposes two simple income...

In the period 2001-2004 two major reforms followed in Belgium: a personal income tax reform (2001) and a reform of social security contributions for low skilled employees (2004). Using a discrete hours labor supply model, this paper assesses the impact of these reforms on aggregate labor supply...