IS AN INEQUALITY-NEUTRAL FLAT TAX REFORM REALLY NEUTRAL?

Juan Prieto Rodríguez, Juan Gabriel Rodríguez and Rafael Salas
Additional contact information
Juan Prieto Rodríguez: Universidad de Oviedo and Instituto de Estudios Fiscales
Juan Gabriel Rodríguez: Universidad Rey Juan Carlos de Madrid and Instituto de Estudios Fiscales
Authors registered in the RePEc Author Service: Juan Gabriel Rodríguez and Juan Prieto-Rodriguez ()

Working Papers from Instituto de Estudios Fiscales

Abstract: . Let us assume a revenue- and inequality-neutral flat tax reform shifting from a graduated-rate tax. Is this reform really neutral in terms of the income distribution? Traditionally, there has been a bias toward the inequality analysis, forgetting other relevant aspects of the income distribution. This kind of reforms implies a set of composite transfers, both progressive and regressive, even though inequality remains unchanged. This paper shows that polarization is a useful tool for characterizing this set of transfers caused by inequality-neutral tax reforms. A simulation exercise illustrates how polarization can be used to discriminate between two inequality-neutral tax alternatives.

Keywords: polarization; inequality; flat tax. (search for similar items in EconPapers)
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ief.es/documentos/recursos/publicaciones/papeles_trabajo/2004_29.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.ief.es:443 (Bad file descriptor) (http://www.ief.es/documentos/recursos/publicaciones/papeles_trabajo/2004_29.pdf [302 Moved Temporarily]--> https://www.ief.es/documentos/recursos/publicaciones/papeles_trabajo/2004_29.pdf)

Related works:
Working Paper: Is an inequality-neutral flat tax reform really neutral? (2004)
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:hpe:wpaper:y:2004:i:29

Access Statistics for this paper

More papers in Working Papers from Instituto de Estudios Fiscales Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().