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Identifying tax implicit equivalence scales
© 2017, Springer Science+Business Media New York. This paper describes a simple and tractable method for identifying equivalence scales that reflect the value judgements implicit in a tax and transfer system. The approach depends on two identifying assumptions and a functional description for transf...
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| Main Authors: | , , |
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| Format: | Default Article |
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2017
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| Online Access: | https://hdl.handle.net/2134/34108 |
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| _version_ | 1818169485710852096 |
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| author | Justin van de Ven Nicolas Herault Fran Azpitarte |
| author_facet | Justin van de Ven Nicolas Herault Fran Azpitarte |
| author_sort | Justin van de Ven (7189094) |
| collection | Figshare |
| description | © 2017, Springer Science+Business Media New York. This paper describes a simple and tractable method for identifying equivalence scales that reflect the value judgements implicit in a tax and transfer system. The approach depends on two identifying assumptions and a functional description for transfer payments that can be estimated using common publicly available data sources. We use this approach to evaluate tax implicit equivalence scales for the tax-transfer systems of 12 European countries that applied in 2012. Cross-country averages for the tax implicit scales generate a surprising set of stylised results: at low incomes, each additional household member increases the tax implicit scale by approximately 0.5, relative to 1.0 for the first adult; at high incomes, the average tax implicit scales describe variation that is remarkably similar to the modified OECD scale. However, substantial cross-country variation underlies these average scales, suggesting important differences in value judgements implicit in the respective tax-transfer systems; differences that can otherwise be difficult to discern when systems are complex and opaque. |
| format | Default Article |
| id | rr-article-9475808 |
| institution | Loughborough University |
| publishDate | 2017 |
| record_format | Figshare |
| spelling | rr-article-94758082017-01-01T00:00:00Z Identifying tax implicit equivalence scales Justin van de Ven (7189094) Nicolas Herault (7188581) Fran Azpitarte (5445674) Other human society not elsewhere classified Other language, communication and culture not elsewhere classified Equivalence scale Taxation Horizontal equity Language, Communication and Culture not elsewhere classified Studies in Human Society not elsewhere classified © 2017, Springer Science+Business Media New York. This paper describes a simple and tractable method for identifying equivalence scales that reflect the value judgements implicit in a tax and transfer system. The approach depends on two identifying assumptions and a functional description for transfer payments that can be estimated using common publicly available data sources. We use this approach to evaluate tax implicit equivalence scales for the tax-transfer systems of 12 European countries that applied in 2012. Cross-country averages for the tax implicit scales generate a surprising set of stylised results: at low incomes, each additional household member increases the tax implicit scale by approximately 0.5, relative to 1.0 for the first adult; at high incomes, the average tax implicit scales describe variation that is remarkably similar to the modified OECD scale. However, substantial cross-country variation underlies these average scales, suggesting important differences in value judgements implicit in the respective tax-transfer systems; differences that can otherwise be difficult to discern when systems are complex and opaque. 2017-01-01T00:00:00Z Text Journal contribution 2134/34108 https://figshare.com/articles/journal_contribution/Identifying_tax_implicit_equivalence_scales/9475808 CC BY-NC-ND 4.0 |
| spellingShingle | Other human society not elsewhere classified Other language, communication and culture not elsewhere classified Equivalence scale Taxation Horizontal equity Language, Communication and Culture not elsewhere classified Studies in Human Society not elsewhere classified Justin van de Ven Nicolas Herault Fran Azpitarte Identifying tax implicit equivalence scales |
| title | Identifying tax implicit equivalence scales |
| title_full | Identifying tax implicit equivalence scales |
| title_fullStr | Identifying tax implicit equivalence scales |
| title_full_unstemmed | Identifying tax implicit equivalence scales |
| title_short | Identifying tax implicit equivalence scales |
| title_sort | identifying tax implicit equivalence scales |
| topic | Other human society not elsewhere classified Other language, communication and culture not elsewhere classified Equivalence scale Taxation Horizontal equity Language, Communication and Culture not elsewhere classified Studies in Human Society not elsewhere classified |
| url | https://hdl.handle.net/2134/34108 |