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Lucerne Open Repository
Other literature type . 2018
License: CC BY
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Progressive VAT? The redistributive effects of VAT rate differentiation

Authors: Schmutz, Felix (Author); Schaltegger, Christoph A. (Author);

Progressive VAT? The redistributive effects of VAT rate differentiation

Abstract

VAT is normally considered to have regressive distributional effects on income distribution. Many countries try to address distributional concerns with rate differentiation. Based on Swiss data we find that both the existing VAT as well as a revenue-neutral flat rate have no significant redistributive effects on the Gini coefficient. Further, we show that differentiated VAT rates only have weak intended distributional effects and that a different VAT structure can also not make VAT progressive regarding income. Based on our results, we conclude that introducing a flat rate should be considered.

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Switzerland
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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!
0
Average
Average
Average
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