TAX POLICY AND INCOME INEQUALITY IN THE UNITED STATES, 1979–2007. (18th November 2014)

• Record Type: Journal Article
• Authors: Bargain, Olivier; Dolls, Mathias; Immervoll, Herwig; Neumann, Dirk; Peichl, Andreas; Pestel, Nico; Siegloch, Sebastian
• Is Part Of: Economic inquiry. Volume 53:Number 2(2015:Apr.)
• Page Start: 1061
• Page End: 1085
• Publication Date: 2014-11-18
• Subjects: Economics -- Periodicals; 330.05
• DOI: 10.1111/ecin.12172
• Languages: English
• ISSNs: 0095-2583

Abstract

<abstract abstract-type="main" id="ecin12172-abs-0001"> <title>Abstract</title> <p id="ecin12172-para-0001"> <italic>This paper assesses the effects of U.S. tax policy reforms on inequality over around three decades, from 1979 to 2007. It applies a new method for decomposing changes in government redistribution into (1) a direct policy effect resulting from policy changes and (2) the effects of changing market incomes. Over the period as a whole, the tax policy changes increased income inequality by pushing up the income share of high‐income earners (the top 20%)</italic>. (<italic>JEL</italic> H23, H31, H53, P16)</p> </abstract>