How does a fiscal reform affect elasticities of income tax revenues? the case of Spain, 2003-2008
Éditorial: [s.l: s.n.]
Année de publication: 2011
Congreso: Encuentro de Economía Pública (18. 2011. Málaga)
Type: Communication dans un congrès
Résumé
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.