Tax Burden Degree as a Tool to Design Tax Systems

Jose Alcalde, María del Carmen Marco-Gil () and Jose Silva
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María del Carmen Marco-Gil: Dep. of Economics, Polytechnic University of Cartagena, Postal: Facultad de Ciencias de la Empresa, Calle Real, 3. 30201 – Cartagena., Spain

No 12-11, QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory

Abstract: This paper explores an integrated taxation system. Taking as a premise the proposals by the Carter Commission Report, we find out that proportional tax is the unique system that allows to neutrally integrate the taxable income. This analysis leads to explore new tax rules combining the extreme cases of `Flat Tax' and `Equalizing Net Income' rules. As a conclusion we suggest the Equitably Compensatory tax rule which accurately combines both extreme principles. Surprisingly enough, this rule coincides with the Proportional rule for societies whose income is not too unequally distributed.

Keywords: Tax burden degree; Taxation system; Prop ortional taxation (search for similar items in EconPapers)
JEL-codes: D63 H20 H30 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2012-06-18
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:qmetal:2012_011

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