The Spanish personal income tax: facts and parametric estimates

TY - JOUR

T1 - The Spanish personal income tax

T2 - facts and parametric estimates

AU - García-Miralles, Esteban

AU - Guner, Nezih

AU - Ramos, Roberto

PY - 2019/11/1

Y1 - 2019/11/1

N2 - In this paper, we use administrative data on tax returns to characterize the distributions of before- and after-tax income, tax liabilities and tax credits in Spain for individuals and households. We use the most recent available data, 2015 for individuals and 2013 for households, but also discuss how the income distribution and taxes have changed since 2002. We also estimate effective tax functions that capture the underlying heterogeneity of the data in a parsimonious way. These parametric functions can be used to calculate after-tax incomes in surveys where this information is not directly available, and can also be used in quantitative work in macroeconomics and public finance.

AB - In this paper, we use administrative data on tax returns to characterize the distributions of before- and after-tax income, tax liabilities and tax credits in Spain for individuals and households. We use the most recent available data, 2015 for individuals and 2013 for households, but also discuss how the income distribution and taxes have changed since 2002. We also estimate effective tax functions that capture the underlying heterogeneity of the data in a parsimonious way. These parametric functions can be used to calculate after-tax incomes in surveys where this information is not directly available, and can also be used in quantitative work in macroeconomics and public finance.

KW - Faculty of Social Sciences

KW - Personal income tax

KW - Tax functions

KW - Income distribution

U2 - 10.1007/s13209-019-0197-5

DO - 10.1007/s13209-019-0197-5

M3 - Journal article

SN - 1869-4187

VL - 10

SP - 439

EP - 477

JO - SERIEs

JF - SERIEs

IS - 3-4

ER -