On the equivalence between progressive taxation and inequality reduction
(2007)
Files
JMT-COREDP2007.pdf
Open Access - Adobe PDF
- 143.44 KB
Details
- Authors
- Abstract
- We establish the precise connections between progressive taxation and inequality reduction, in a setting where the level of tax revenue to be raised is endogenously fixed and tax schemes are balanced. We show that, in contrast with the traditional literature on taxation, the equivalence between inequality reduction and the combination of progressivity and income order preservation does not always hold in this setting. However, we show that, among rules satisfying consistency and, either revenue continuity, or revenue monotonicity, the equivalence remains intact.
- Affiliations
Citations
Ju, B.-G., & Moreno-Ternero, J. (2007). On the equivalence between progressive taxation and inequality reduction (CORE Discussion Papers 2007/2). https://hdl.handle.net/2078.5/129342