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Digital
Library of the European Council for Modelling and Simulation |
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Title: |
Decreasing Progressive
Tax Rates With Basic Income: The Golden Mean? |
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Authors: |
Erzsebet Terez
Varga |
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Published in:
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(2019). ECMS 2019
Proceedings Edited by: Mauro Iacono, Francesco Palmieri, Marco Gribaudo,
Massimo Ficco, European Council for Modeling and
Simulation. DOI: http://doi.org/10.7148/2019 ISSN:
2522-2422 (ONLINE) ISSN:
2522-2414 (PRINT) ISSN:
2522-2430 (CD-ROM) 33rd International ECMS Conference on Modelling and Simulation, Caserta, Italy, June 11th
– June 14th, 2019 |
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Citation
format: |
Erzsebet Terez Varga (2019).
Decreasing Progressive Tax Rates With Basic Income: The Golden Mean?, ECMS 2019
Proceedings Edited by: Mauro Iacono, Francesco Palmieri, Marco Gribaudo, Massimo
Ficco European Council for Modeling and Simulation.
doi: 10.7148/2019-0085 |
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DOI: |
https://doi.org/10.7148/2019-0085 |
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Abstract: |
The paper
analyses an interesting innovation from the field of taxation. A progressive
tax schedule in which the marginal rates are decreasing is compared with the
traditional progressive solution (with increasing marginal rates) and with
the case of linear rate. The effects on social inequality and distortion are
investigated. To measure these features the applied indices are S80/S20 and
relative deadweight-loss. According to the model (calibrated on Hungarian
data), progression with decreasing marginal rates and base income is a liminality in a sense that: (1) it is more equitable than
linear rate meanwhile less equitable than regular progression and (2) its
distortional effect is less than regular progression’s but higher than in the
linear case. |
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Full
text: |
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