Income taxation and equity: new dominance criteria and an application to Romania

Paolo Brunori, Flaviana Palmisano and Vito Peragine

No 50, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: This paper addresses the problem of the normative evaluation of income tax systems and income tax reforms. While most of the existing criteria, framed in the utilitarian tradition, are uniquely based on information about individual incomes, this paper, building upon the opportunity egalitarian theory, proposes new equity criteria which take into account also the socio-economic characteristics of individuals. Suitable dominance conditions that can be used to rank alternative tax systems are derived by means of an axiomatic approach. Moreover, the theoretical results are used to assess the redistributive effects of an hypothetical tax reform in Romania through a microsimulation analysis.

Keywords: income inequality; inequality of opportunity; tax reforms; microsimulation; progressivity; horizontal equity. (search for similar items in EconPapers)
JEL-codes: D63 E24 O15 O40 (search for similar items in EconPapers)
Pages: 277
Date: 2014-12, Revised 2014-12
New Economics Papers: this item is included in nep-acc, nep-mac and nep-pbe
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Income taxation and equity: new dominance criteria and an application to Romania (2014)
Working Paper: Income taxation and equity: New dominance criteria and an application to Romania (2014)
Working Paper: Income taxation and equity: new dominance criteria and an application to Romania (2014)
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