Income tax progressivity and inflation during the world wars
| Autor: | Oriol Sabaté, Sara Torregrosa Hetland |
|---|---|
| Rok vydání: | 2022 |
| Předmět: |
Inflation
History Inflació media_common.quotation_subject Guerra Mundial I 1914-1918 Economics Econometrics and Finance (miscellaneous) World War II Impost sobre la renda de les persones físiques Monetary economics First world war Personal income tax World War 1914-1918 Tax revenue World War 1939-1945 Income tax Value (economics) Economics Guerra Mundial II 1939-1945 media_common |
| Zdroj: | Dipòsit Digital de la UB Universidad de Barcelona |
| Popis: | This paper studies the impact of inflation on income taxes in Sweden, the UK, and the United States during the world wars. As tax reforms were rising top marginal rates and reducing exemption thresholds, extraordinary levels of inflation eroded the real value of exemptions, brackets, and deductions. The micro-simulation of actual and alternative scenarios shows that inflation made the tax less progressive, particularly in Sweden during World War I and the UK during World War II. Nevertheless, its redistributive effect increased due to the related growth in tax revenue. Inflation contributed to transform a “class tax’’ into a “mass tax”. |
| Databáze: | OpenAIRE |
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