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SSRN Electronic Journal
Article . 2005 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2005
Data sources: EconStor
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On the Redistributive Properties of Presumptive Taxation

Authors: Alessandro Balestrino; Umberto Galmarini;

On the Redistributive Properties of Presumptive Taxation

Abstract

Presumptive taxation, in which an income proxy is used as tax base, has been and is still used today in countries with very diverse situations - developing, transition and developed countries. Usually, this form of taxation is thought of as a revenue-raising device in presence of widespread imperfect tax compliance. We investigate the question of whether presumptive taxation can be used as a redistributive instrument. To this end, we employ an occupational choice model in which an individual can be either an entrepreneur or a worker. We allow for different abilities to dodge taxes across social classes, and consider both the case in which a conventional income tax is in place alongside presumptive taxation and the case in which only presumptive taxation is operating. We argue that a revenue-neutral reform introducing a lump-sum presumptive tax based on occupational choice can improve social welfare, and sometimes even lead to a Pareto-improvement.

Keywords

ddc:330, tax avoidance, presumptive taxation, redistribution, occupational choice, H26, Steuerwirkung, presumptive taxation, redistribution, tax avoidance, occupational choice, Einkommensteuer, Steuerbemessung, Wohlfahrtseffekt, H21, Kopfsteuer, Arbeitsangebot, Theorie, Steuerinzidenz

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    popularity
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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Average
Average
Average
bronze