How Regressive Are Indirect Taxes? A Microsimulation Analysis for Five European Countries

Autor/inn/en	Decoster, Andre; Loughrey, Jason; O'Donoghue, Cathal; Verwerft, Dirk
Titel	How Regressive Are Indirect Taxes? A Microsimulation Analysis for Five European Countries
Quelle	In: Journal of Policy Analysis and Management, 29 (2010) 2, S.326-350 (25 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0276-8739
Schlagwörter	Taxes; Income; Expenditures; Developed Nations; Foreign Countries; Belgium; Greece; Hungary; Ireland; United Kingdom + Suchen Sie Ihr Suchwort? Abgabe; Einkommen; Ausgaben; Developed countries; Industriestaat; Industrieland; Ausland; Belgien; Griechenland; Ungarn; Irland; Großbritannien
Abstract	Shifting the tax burden from labor to consumption is proposed in many developed countries as a way to make the tax system more incentive compatible. This article deals with the simulation of such a policy change to sharpen the distributional picture. Expenditures are imputed into the EUROMOD microsimulation program. Then social security contributions are lowered and the standard VAT rate is increased to maintain government revenue neutrality. The main conclusions are that (1) indirect taxes are regressive with respect to disposable income but proportional or progressive with respect to total expenditures, and (2) indirect taxes are in any case less progressive than other components of the tax system, making the proposed measure a regressive one. A possible solution exists in increasing the progressivity of the remaining income tax. (Contains 16 tables and 16 footnotes.) (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10