EconPapers    
Economics at your fingertips  
 

How fair? Changes in federal income taxation and the distribution of income, 1978 to 1998

James Alm (), Fitzroy Lee and Sally Wallace
Additional contact information
Fitzroy Lee: Office of Research and Analysis, Government of the District of Colombia, Postal: Office of Research and Analysis, Government of the District of Colombia

Journal of Policy Analysis and Management, 2005, vol. 24, issue 1, 5-22

Abstract: In this paper, we determine how tax law and income distribution changes have separately contributed to the changes in tax progressivity over time, and also how a specific pre-tax distribution of income affects the equalizing ability of a given tax change. We use information from the Current Population Survey for years that follow immediately after significant tax law changes or after the full enactment of these changes to measure the effect of income taxes on income distribution for selected years over the period 1978 to 1998. We find that, even when account is taken of the induced effect of changes in federal income tax laws on pre-tax income, the individual income tax structure has been less successful in equalizing after-tax income since the 1980s and into the early 1990s. We also find that a given tax law's equalizing effect on the distribution of income is significantly affected by the pre-tax distribution of income. © 2005 by the Association for Public Policy Analysis and Management.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://hdl.handle.net/10.1002/pam.20067 Link to full text; subscription required (text/html)

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:wly:jpamgt:v:24:y:2005:i:1:p:5-22

DOI: 10.1002/pam.20067

Access Statistics for this article

More articles in Journal of Policy Analysis and Management from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-22
Handle: RePEc:wly:jpamgt:v:24:y:2005:i:1:p:5-22