A theoretical and practical study on linear reforms of dual taxes

Samuel Calonge and Oriol Tejada

No XREAP2009-01, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

Abstract: We extend the linear reforms introduced by Pf¨ahler (1984) to the case of dual taxes. We study the relative effect that linear dual tax cuts have on the inequality of income distribution -a symmetrical study can be made for dual linear tax hikes-. We also introduce measures of the degree of progressivity for dual taxes and show that they can be connected to the Lorenz dominance criterion. Additionally, we study the tax liability elasticity of each of the reforms proposed. Finally, by means of a microsimulation model and a considerably large data set of taxpayers drawn from 2004 Spanish Income Tax Return population, 1) we compare different yield-equivalent tax cuts applied to the Spanish dual income tax and 2) we investigate how much income redistribution the dual tax reform (Act ‘35/2006’) introduced with respect to the previous tax.

Keywords: Dual taxes; linear reforms; Lorenz domination; lattices (search for similar items in EconPapers)
Pages: 45 pages
Date: 2009-02, Revised 2009-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2009-1.pdf First version, 2009 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2009-1.pdf Revised version, 2009 (application/pdf)

Related works:
Working Paper: A theoretical and practical study on linear reforms of dual taxes (2009)
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:xrp:wpaper:xreap2009-01

Access Statistics for this paper

More papers in Working Papers from Xarxa de Referència en Economia Aplicada (XREAP) Contact information at EDIRC.
Bibliographic data for series maintained by XREAP ( this e-mail address is bad, please contact ).