TY - JOUR
T1 - The redistributive effect and progressivity of taxes revisited
T2 - An international comparison across the European union
AU - Verbist, Gerlinde
AU - Figari, Francesco
N1 - Publisher Copyright:
© 2014 Mohr Siebeck.
PY - 2014/9/1
Y1 - 2014/9/1
N2 - Over the last few years concern for income inequality in Europe has increased remarkably. In this context, taxation is an important redistributive instrument, and we investigate the redistributive role of direct taxes. We focus on the EU-15 countries and the evolution over the period 1998---2008, using EUROMOD, the EU-wide tax-benefit model. The research aim of this paper is twofold. First, we investigate empirically whether there is a link between pre-tax income inequality and redistribution through taxes. Second, we test whether there is a relationship between progressivity and average tax level, the two building stones of the redistributive effect of taxes.
AB - Over the last few years concern for income inequality in Europe has increased remarkably. In this context, taxation is an important redistributive instrument, and we investigate the redistributive role of direct taxes. We focus on the EU-15 countries and the evolution over the period 1998---2008, using EUROMOD, the EU-wide tax-benefit model. The research aim of this paper is twofold. First, we investigate empirically whether there is a link between pre-tax income inequality and redistribution through taxes. Second, we test whether there is a relationship between progressivity and average tax level, the two building stones of the redistributive effect of taxes.
KW - European union
KW - Income redistribution
KW - Income taxes
KW - Microsimulation
KW - Social insurance contributions
UR - http://www.scopus.com/inward/record.url?scp=84907982788&partnerID=8YFLogxK
U2 - 10.1628/001522114X684529
DO - 10.1628/001522114X684529
M3 - Article
SN - 0015-2218
VL - 70
SP - 405
EP - 429
JO - FinanzArchiv
JF - FinanzArchiv
IS - 3
ER -