The redistributive effects of changes in the Personal Income Tax during the Great Recession in Spain

  1. Adiego Estella, Marta
  2. Cantó Sánchez, Olga
  3. Paniagua San Martín, María Milagros
  4. Pérez Barrasa, Teresa
Libro:
XX Encuentro Economía Pública: estado del bienestar. Sostenibilidad y reformas

Editorial: Universidad de Sevilla

ISBN: 978-84-695-6945-0

Año de publicación: 2013

Páginas: 37

Congreso: Encuentro de Economía Pública (20. 2013. Sevilla)

Tipo: Aportación congreso

Resumen

In recent years, a variety of tax changes aiming for fiscal consolidation have taken place in Spain (both at the central and regional level). This has been regarded as crucial when the economic crisis is strongly hitting the Spanish labour market and the unemployment rate has boosted largely over 17 percent since 2009. In fact, public expenditures in the last three years have grown strongly due to the expenses on unemployment benefits and other welfare state protection programs. Regarding personal income tax changes introduced in 2011 and 2012 have generally implied more tax brackets and larger tax rates for medium to high incomes. So far, however, little is known about the impact these changes may have had on the income distribution. Making use of the tax-benefit model for the European Union - EUROMOD - this paper undertakes an evaluation of the effects of the recent changes in Personal Income Tax on the distribution of personal disposable income in Spain