The Impact on Efficiency and Distribution of a Base-Broadening and Rate-Reducing Tax Reform

Johan Willner*, Lena Granqvist

*Korresponderande författare för detta arbete

    Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

    2 Citeringar (Scopus)

    Sammanfattning

    We analyze a base-broadening, rate-reducing, and simplifying tax reform, which may be revenue-neutral, or which may keep the average tax rates constant. Such a reform generally improves efficiency under reasonable conditions but not necessarily if the average tax rate is calculated on taxable incomes or if revenue-neutrality refers to aggregate tax payments only. In most cases, an efficiency-improving reform probably increases inequality unless the marginal rate reduction greatly affects low-income taxpayers. So in some cases, there might be a utilitarian case for increasing, rather than reducing the marginal tax rate.

    OriginalspråkEngelska
    Sidor (från-till)273-294
    Antal sidor22
    TidskriftInternational Tax and Public Finance
    Volym9
    Nummer3
    DOI
    StatusPublicerad - 2002
    MoE-publikationstypA1 Tidskriftsartikel-refererad

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