RT Journal Article
T1 Reported gross income and marginal tax rates: estimation of the behavioural reactions of Spanish taxpayers
A1 Sanz Sanz, José Félix
A1 Arrazola-Vacas, María
A1 Rueda-López, Nuria
A1 Romero-Jordán, Desiderio
AB This article estimates, for the Spanish personal income tax, the elasticity of reported gross income to marginal tax rates. The identification of this elasticity has been performed using the reform approved by Law 35/2006, which came into force in January 2007. The elasticities obtained suggest the existence of important efficiency costs, with significant regional differences. The average elasticity estimated for Spain as a whole is 0.676. However, this elasticity is highly dispersed throughout the Spanish administrative regions, which indicates the unequal power of distortion of the tax. Thus, households whose principal source of income is salary display an elasticity of 0.337, compared to 0.682 for households whose main income source comes from business or savings. Lastly, a positive correlation is also detected between elasticity and income level: an elasticity of 3.6 is reached for taxpayers with an annual gross income exceeding 100 000€.
PB Routledge
SN 1466-4283
YR 2015
FD 2015
LK https://hdl.handle.net/20.500.14352/34202
UL https://hdl.handle.net/20.500.14352/34202
LA eng
NO Ministerio de Economía y Competitividad (MINECO)
NO Instituto de Estudios Fiscales (IEF)
DS Docta Complutense
RD 4 abr 2025