Template-type: ReDIF-Paper 1.0


Author-Name: Jorge Martinez-Vazquez 
Author-Email: jorgemartinez@gsu.edu 
Author-Homepage: https://icepp.gsu.edu/profile/jorge-martinez-vazquez/
Author-Workplace-Name:  International Center for Public Policy. Andrew Young School of Policy Studies, Georgia State University
Author-Workplace-Homepage:  https://icepp.gsu.edu/


Author-Name: Blanca Moreno-Dodson
Author-Workplace-Name: The World Bank

Author-Name: VIoleta Vulovic 
Author-Email: vvulovic@gsu.edu
Author-Homepage: http://aysps.gsu.edu/isp/VulovicV.html
Author-Workplace-Name:  International Center for Public Policy. Andrew Young School of Policy Studies, Georgia State University
Author-Workplace-Homepage:  https://icepp.gsu.edu/



Title: The Impact of Tax and Expenditure Policies on Income Distribution: Evidence from a Large Panel of Countries



Abstract: The main focus of this paper is on the potential role that taxation and public expenditure policies play in general in affecting income distribution. We find that progressive personal income taxes and corporate income taxes reduce income inequality. The effect of corporate income taxes seems to be eroded away in open or globalized economies. We also generally find that general consumption taxes, excise taxes and customs duties have a negative impact on income distribution. On the expenditure side, we find that higher shares of GDP on social welfare, education, health and housing public expenditures have a positive impact on income distribution.  

Keywords: Tax Policy, Public Expenditures, Income Distribution, Tax Progressivity

Length: 45 pages

Creation-Date: 2012-05-30

File-URL: http://icepp.gsu.edu/files/2015/03/ispwp1225.pdf

File-Format:application/pdf

Handle: RePEc:ays:ispwps:paper1225