Year: 2006
Author: Bönke, Timm, Corneo, Giacomo
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 126 (2006), Iss. 4 : pp. 489–519
Abstract
We employ a large sample of individual tax returns data to simulate alternatives to the income tax reform introduced in Germany by the governmental coalition of Social Democrats and Greens in 1998. We characterize three reforms that would have been fiscally equivalent to the actual one: a distributionally neutral tax reform, one with a maximal basic allowance, and a flat tax. By comparing the individual tax burdens under each alternative, we simulate majority voting on the tax reform. The actual reform loses against both the distributionally neutral reform and the one with maximal basic allowance; however, it wins against the flat tax. The Condorcet winner turns out to be the reform with maximal basic allowance.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.126.4.489
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 126 (2006), Iss. 4 : pp. 489–519
Published online: 2006-04
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 31
Author Details
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