EconPapers    
Economics at your fingertips  
 

The Spanish income tax reform of 2015: analysis of the effects on poverty and redistribution using microsimulation tools

Nuria Badenes-Plá and José María Buenaventura-Zabala
Additional contact information
Nuria Badenes-Plá: Institute of Fiscal Studies, Madrid, Spain
José María Buenaventura-Zabala: Institute of Fiscal Studies, Madrid, Spain

Public Sector Economics, 2017, vol. 41, issue 3, 315-333

Abstract: In this work we analyze the effects of the 2015 reform of the Spanish personal income tax (PIT) on tax revenue, liquidity, redistribution, progressivity, and poverty, using microdata. Tax reform has increased the redistributive effect. The applicable legislation in 2016 is almost 6.3% more redistributive than that in 2011, as measured by the Reynolds-Smolensky index. This is a remarkable achievement since greater redistribution has been attained through significantly lower tax revenue. The 2016 legislation has produced 4.4% lower tax revenue, but progressivity, as measured by Kakwani index, has increased by 12.2% from the 2011 legislation. The redistributive and progressivity analysis has been conducted with the use of microsimulation tools developed in the Instituto de Estudios Fiscales (IEF), in Spain. The poverty analysis is made using EUROMOD, a tax-benefit microsimulation model for the European Union.

Keywords: personal income distribution; inequality; redistributive taxation; microsimulation; progressivity (search for similar items in EconPapers)
JEL-codes: D31 D63 H23 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.pse-journal.hr/upload/files/pse/2017/3/badenes_buenaventura.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:ipf:psejou:v:41:y:2017:i:3:p:315-333

Access Statistics for this article

More articles in Public Sector Economics from Institute of Public Finance Contact information at EDIRC.
Series data maintained by Martina Fabris ().

 
Page updated 2017-11-18
Handle: RePEc:ipf:psejou:v:41:y:2017:i:3:p:315-333