How does a fiscal reform affect elasticities of income tax revenues? the case of Spain, 2003-2008
Verlag: [s.l: s.n.]
Datum der Publikation: 2011
Kongress: Encuentro de Economía Pública (18. 2011. Málaga)
Art: Konferenz-Beitrag
Zusammenfassung
This paper estimates the extent to which an exogenous change in income affects income tax revenues. We focus on the case of Spain over the period 2003-2008, as income tax there underwent a substantial reform in 2007. Using both an analytical method and a numerical simulation, we find a significant increase in aggregate income tax elasticities from 1.4 for 2003-2003 to around 1.8 for 2007-2008. The sensitivity of results to the presence of housing tax credits, non-equiproportional variations in income, changes in income inequality and fiscal drag is also considered.