Welfare Effects of Proportional Taxation: Empirical Evidence from Italy, Norway and Sweden

Ugo Colombino and Steinar Strøm Rolf Aaberge ()
Additional contact information
Ugo Colombino and Steinar Strøm Rolf Aaberge: Statistics Norway, http://www.ssb.no/english/research/
Authors registered in the RePEc Author Service: Steinar Strøm, Ugo Colombino () and Rolf Aaberge ()

Discussion Papers from Research Department of Statistics Norway

Abstract: This paper employs a particular labor supply model to examine the welfare effects from replacing current tax systems in Italy, Norway and Sweden by proportional taxation on labor income. The results show that there are high efficiency costs for Norway and low costs for Italy and Sweden associated with the current progressive labor income taxes. However, there appears to be large variation in the distribution of welfare gains/losses. "Rich" households – defined by their pre-tax-reform income – tend to benefit more than "poor" households from replacing the current progressive tax systems by proportional taxation.

Keywords: Labor supply; taxation; distribution of income and welfare. (search for similar items in EconPapers)
JEL-codes: H23 H31 J22 (search for similar items in EconPapers)
Date: 1996-04
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ssb:dispap:171

Access Statistics for this paper

More papers in Discussion Papers from Research Department of Statistics Norway
Address: P.O.Box 8131 Dep, N-0033 Oslo, Norway
Contact information at EDIRC.
Series data maintained by B Mellemstrand ().