What explains the redistribution achieved by the Italian Personal Income Tax ? : evidence from administrative data Gian Paolo Barbetta, Simone Pellegrino and Gilberto Turati
By: Barbetta, Gian Paolo
.
Contributor(s): Pellegrino, Simone | Turati, Gilberto.
Material type: 
ArticlePublisher: 2019Subject(s): IMPUESTOS | RENTA | REDISTRIBUCION | ITALIAOnline resources: Click here to access online
In:
Public Finance Review v. 46, n. 1, January 2018, p. 7-28 Summary: We analyze the Italian personal income tax (PIT) in the light of the different tools available to the government to achieve income redistribution. We focus in particular on three mechanisms: marginal tax rates, deductions, and tax credits. Exploiting an extended version of the standard Pfähler decomposition, we estimate the contribution of each of these three tools to the overall redistributive effect of the PIT using administrative data on more than 1.3 million individual tax returns. Our estimates suggest that more than half of the total PIT redistributive effect is due to the two most important tax credits (the tax credit for employment and the tax credit for retirement income), while the marginal rates schedule contribution is about 40 percent. On the contrary, most of the itemized expenditures do not show any sizable impact on redistribution.
| Item type | Current location | Home library | Call number | URL | Status | Date due | Barcode |
|---|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 581/2018/1-2 (Browse shelf) | https://journals.sagepub.com/doi/pdf/10.1177/1091142116651488 | Available | OP 581/2018/1-2 |
Browsing IEF Shelves Close shelf browser
Disponible también en formato electrónico en la Biblioteca del IEF.
Resumen.
Bibliografía.
We analyze the Italian personal income tax (PIT) in the light of the different tools available to the government to achieve income redistribution. We focus in particular on three mechanisms: marginal tax rates, deductions, and tax credits. Exploiting an extended version of the standard Pfähler decomposition, we estimate the contribution of each of these three tools to the overall redistributive effect of the PIT using administrative data on more than 1.3 million individual tax returns. Our estimates suggest that more than half of the total PIT redistributive effect is due to the two most important tax credits (the tax credit for employment and the tax credit for retirement income), while the marginal rates schedule contribution is about 40 percent. On the contrary, most of the itemized expenditures do not show any sizable impact on redistribution.
Click on an image to view it in the image viewer
There are no comments for this item.