Tax reforms : winners and losers

• Autor(a) principal: Semeano, João Domingues
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/22205
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

A long stream of literature has been devoted to studying the level effects and implementability of tax reforms. The heterogeneous agents framework allows us to study aggregate effects of tax reforms, the channels by which these effects propagate and the picture of who are the winners and losers of their implementation. Taking advantage of the rich fiscal side of our model, we study the implementation of different tax reforms, including changes to labour tax progressivity. We show, within an incomplete-markets model featuring consumer credit, that both reforms that finance lump-sum transfers and those that are revenue neutral have important level effects. Even in tax reforms designed to lessen the tax bill of poorer agents, the depletion of capital stock leaves them worse off.