The Inconsistency Between Measurement and Policy Instruments in Family Income Taxation - 10.1628/001522113X671119 - Mohr Siebeck
Economics

Peter J. Lambert, Shlomo Yitzhaki

The Inconsistency Between Measurement and Policy Instruments in Family Income Taxation

Section: Articles
FinanzArchiv (FA)

Volume 69 () / Issue 3, pp. 241-255 (15)

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There is an inconsistency between the way income tax progressivity is measured and the policy instruments typically used by the income tax authorities. This inconsistency leads to violation of Feldstein's principle of horizontal equity and causes unintentional reranking among families of different sizes. Implications are considered. In particular, we provide a methodology for measuring the magnitude of the unintentional reranking in terms of forgone redistribution, and apply it to Israeli data.
Authors/Editors

Peter J. Lambert No current data available.

Shlomo Yitzhaki No current data available.