Should the rich be taxed more? : the fiscal inequality coefficient / John Hatgioannides (Cass Business School, City University of London), Marika Karanassou (Queen Mary, University of London and IZA), Hector Sala (Universitat Autònoma de Barcelona and IZA) ; IZA Institute of Labor Economics
VerfasserHatgioannides, John In der Gemeinsamen Normdatei der DNB nachschlagen ; Karanassou, Marika In der Gemeinsamen Normdatei der DNB nachschlagen ; Sala, Hector In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2017
Elektronische Ressource
Umfang1 Online-Ressource (10, 3 Seiten) : Diagramme
SerieDiscussion paper ; no. 10978
URNurn:nbn:de:hbz:5:2-138520 Persistent Identifier (URN)
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This paper holistically addresses the effective (relative) income tax contribution of a given in-come (or, wealth) group. The widely acclaimed standard in public policy is the absolute benefaction of a given income group in filling up the fiscal coffers. Instead, we focus on the ratio of the average income tax rate of an income group divided by the percentage of national income (or wealth) appropriated by the same income group. In turn, we develop the Fiscal Inequality Coefficient which compares the effective percentage income tax payments of pairs of income (or wealth) groups. Using data for the US, we concentrate on pairs such as the Bottom 90% versus Top 10%, Bottom 99% versus Top 1%, and Bottom 99.9% versus Top 0.1%. We conclude that policy makers with a strong social conscience should re-evaluate the progressivity of the income tax system and make the richest echelons of the income and wealth distributions pay a fairer and higher tax.