In this paper we compare two tax systems which may be used to introduce family-based taxation in a Region of Italy, Lombardy. The French-like tax system, which uses a family quotient, and a German-like tax system, which applies joint taxation and decreasing-in-income children allowances. Our comparison takes into account revenue neutrality, labour supply effects and different degrees of inequality aversion by using an abbreviated social welfare function a la Sen. Our results show that, although the family quotient performs relatively better in efficiency terms, welfare is unambiguously higher under the German-like tax system provided the social planner is to some extent inequality averse.

Verzillo, S., Santoro, A., Mezzanzanica, M. (2017). Family splitting versus joint taxation: a case-study. ECONOMIA POLITICA, 34(2), 337-354 [10.1007/s40888-016-0039-x].

Family splitting versus joint taxation: a case-study

Verzillo, S
;
Santoro, A;Mezzanzanica, M
2017

Abstract

In this paper we compare two tax systems which may be used to introduce family-based taxation in a Region of Italy, Lombardy. The French-like tax system, which uses a family quotient, and a German-like tax system, which applies joint taxation and decreasing-in-income children allowances. Our comparison takes into account revenue neutrality, labour supply effects and different degrees of inequality aversion by using an abbreviated social welfare function a la Sen. Our results show that, although the family quotient performs relatively better in efficiency terms, welfare is unambiguously higher under the German-like tax system provided the social planner is to some extent inequality averse.
Articolo in rivista - Articolo scientifico
Administrative data; Income taxation; Inequality;
Income taxation; Administrative data; Inequality
English
2017
34
2
337
354
partially_open
Verzillo, S., Santoro, A., Mezzanzanica, M. (2017). Family splitting versus joint taxation: a case-study. ECONOMIA POLITICA, 34(2), 337-354 [10.1007/s40888-016-0039-x].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/135563
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