We calibrate and simulate an heterogeneous agents OLG model to assess the impact of several reforms in which the personal income tax in Italy is replaced by a flat tax possibly complemented with a deduction. We find that a flat tax is welfare improving (according to a utilitarian social welfare function) only for specific subgroups of the population and for low values of the deduction.

Flat tax reforms in Italy

Alessandro Sommacal
2020

Abstract

We calibrate and simulate an heterogeneous agents OLG model to assess the impact of several reforms in which the personal income tax in Italy is replaced by a flat tax possibly complemented with a deduction. We find that a flat tax is welfare improving (according to a utilitarian social welfare function) only for specific subgroups of the population and for low values of the deduction.
progressive tax
personal income tax
income distribution
labor supply
heterogeneous agents OLG models
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11562/1049560
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social impact