Is an inequality-neutral flat tax reform really neutral?

  1. Prieto Rodríguez, Juan 14
  2. Rodríguez Hernández, Juan Gabriel 24
  3. Salas del Mármol, Rafael 34
  1. 1 Universidad de Oviedo
    info

    Universidad de Oviedo

    Oviedo, España

    ROR https://ror.org/006gksa02

  2. 2 Universidad Rey Juan Carlos
    info

    Universidad Rey Juan Carlos

    Madrid, España

    ROR https://ror.org/01v5cv687

  3. 3 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

  4. 4 Instituto de Estudios Fiscales
    info

    Instituto de Estudios Fiscales

    Madrid, España

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Revue:
Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía

ISSN: 1578-0252

Année de publication: 2004

Número: 29

Pages: 7-26

Type: Article

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D'autres publications dans: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía

Résumé

Let us assume a revenue- and inequality-neutral fiat 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.

La source de données: Dialnet