RT Journal Article
T1 Macroeconomic and Distributive Effects of Increasing Taxes in Spain
A1 Fuster, Luisa
AB I assess the macroeconomic and redistributive effects of tax reforms aimed at increasingtax revenue in Spain. To this end, I develop a theory of entrepreneurship thatmimics key facts on the wealth and income distribution in Spain. I find two reformsthat raise fiscal pressure in Spain to the average value among countries in the Euroarea. The first reform involves doubling the average effective tax rate on labor andbusiness income for all individuals whose income is above a threshold level. I find thatthis reform reduces the inequality in after-tax income, wealth, and consumption. However,it implies a substantial GDP reduction. The second reform increases the flat taxrate on consumption by fifteen percentage points. While this reform does not reducelong-run output, it does not decrease household inequality. All in all, the desirabilityof the two reforms depends on the government’s preferences for reducing inequalityat the expense of aggregate output losses.
PB Springer Open
SN 1869-4187
YR 2022
FD 2022-11-09
LK https://hdl.handle.net/10016/36245
UL https://hdl.handle.net/10016/36245
LA eng
NO I am very grateful to  the ministry of Science and Innovation of Spain for financial support (Grant PID2019-107614GB-I00).
DS e-Archivo
RD 1 sept. 2024