On the equivalence between progressive taxation and inequality reduction
Biung-Ghi Ju () and
Juan Moreno-Ternero
No 718, Discussion Paper Series from Institute of Economic Research, Korea University
Abstract:
We establish the precise connections between progressive taxation and inequality reduction, in a setting where the level of tax revenue to be raised is exogenously fixed and tax schemes are balanced. We show that, in contrast with the traditional literature on taxation, the equivalence between inequality reduction and the combination of progressivity and income order preservation does not always hold in this setting. However, we show that, among rules satisfying consistency and, either revenue continuity, or revenue monotonicity, the equivalence remains intact.
Keywords: progressivity; inequality reduction; income order preservation; consistency; taxation (search for similar items in EconPapers)
JEL-codes: C70 D63 D70 H20 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2007
New Economics Papers: this item is included in nep-pbe and nep-pub
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Citations: View citations in EconPapers (1)
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http://econ.korea.ac.kr/~ri/WorkingPapers/w0718.pdf (application/pdf)
Related works:
Working Paper: On the equivalence between progressive taxation and inequality reduction (2009)
Journal Article: On the equivalence between progressive taxation and inequality reduction (2008)
Working Paper: On the equivalence between progressive taxation and inequality reduction (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:iek:wpaper:0718
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