Economie et Statistique / Economics and Statistics n° 526-527 - 2021Varia

Economie et Statistique / Economics and Statistics
Paru le : Paru le 07/10/2021
Mathias André and Antoine Sireyjol
Economie et Statistique / Economics and Statistics - October 2021
Consulter

Redistributive Effects of the Taxation of Couples and Families: A Microsimulation Study of Income Tax

Mathias André and Antoine Sireyjol

Economie et Statistique / Economics and Statistics

No 526-527

Paru le : 07/10/2021

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