How does a fiscal reform affect elasticities of income tax revenues?: The case of Spain, 2003-2008

• Autores: Diego Martínez López
• Localización: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía, ISSN 1578-0252, Nº 4, 2011, págs. 7-20
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Dialnet Métricas: 2 Citas
• Resumen

  • This paper estimates the extent to which an exogenous change in income affects income tax revenues. We focus on the case of Spain over the period 2003-2008, as income tax there underwent a substantial reform in 2007. Using both an analytical method and a numerical simulation, we find a significant increase in aggregate income tax elasticities from 1.4 for 2003-2003 to around 1.8 for 2007 2008. The sensitivity of results to the presence of housing tax credits, non-equiproportional variations in income, changes in income inequality and fiscal drag is also considered.