Economie et Statistique / Economics and Statistics n° 526-527 - 2021 Varia
Redistributive Effects of the Taxation of Couples and Families: A Microsimulation Study of Income Tax
Mathias André and Antoine Sireyjol
Abstract
This study examines the budgetary and redistributive effects of marital and family income taxation in France. On the basis of the Ines microsimulation model, it proposes a complete methodology for individualising incomes and the various tax schemes targeting couples and families. By comparing income tax in 2017 with a fictitious situation in which it would have been applied on an individual basis, the effects of marital and family taxation are seen to be significant and overwhelmingly beneficial: 13 million households gain, benefiting from a total of 27.7 billion euros. 1.1 million households lose out, primarily those for which marital taxation is not offset by the gains from family taxation. 40% of the total effect is due to marital taxation and 60% is due to family taxation. The wealthiest 15% of people are those who benefit the most from marital taxation (48% of the gains, compared with less than 25% for the poorest 50%).
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Citation: André, M. & Sireyjol, A. (2021). Redistributive Effects of the Taxation of Couples and Families: A Microsimulation Study of Income Tax. Economie et Statistique / Economics and Statistics, 526-527, 21–39. doi:10.24187/ecostat.2021.526d.2049