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Flat Tax: European Experiences and the Italian Proposals

Author

Listed:
  • Massimo Baldini

    (Università di Modena e Reggio Emilia)

  • Leonzio Rizzo

    (Università di Ferrara and IEB)

Abstract

The paper discusses the flat tax, intended as a potential comprehensive reform of personal income tax. After a presentation of the broad characteristics of the flat tax model, we extensively describe the ap¬plications of this model that have taken place so far in some countries and its impact on financial and economic indicators. The last part of the paper focuses on the Italian case, assessing the possible dis-tributional effects of the application on Italian households’ incomes of some recently presented flat tax reform proposals.

Suggested Citation

  • Massimo Baldini & Leonzio Rizzo, 2021. "Flat Tax: European Experiences and the Italian Proposals," Hacienda Pública Española / Review of Public Economics, IEF, vol. 238(3), pages 137-162, September.
    • Handle: RePEc:hpe:journl:y:2021:v:238:i:3:p:137-162
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    References listed on IDEAS

    as
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    8. Yuriy Gorodnichenko & Jorge Martinez-Vazquez & Klara Sabirianova Peter, 2009. "Myth and Reality of Flat Tax Reform: Micro Estimates of Tax Evasion Response and Welfare Effects in Russia," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 504-554, June.
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    10. Anne-Marie Brook & Willi Leibfritz, 2005. "Slovakia's Introduction of a Flat Tax as Part of Wider Economic Reforms," OECD Economics Department Working Papers 448, OECD Publishing.
    11. Sandra Hadler & Christine Moloi & Sally Wallace, 2007. "Flat Rate Taxes; A Policy Note," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0706, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    12. Duncan, Denvil, 2014. "Behavioral responses and the distributional effects of the Russian ‘flat’ tax," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 226-240.
    13. Atkinson, Anthony B., 2015. "Inequality: what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Sommacal, Alessandro, 2023. "Should Italy switch to a flat tax? An assessment based on a heterogeneous agents OLG model," European Journal of Political Economy, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    Flat rate tax; Distributive effect; Tax allowance; Microsimulation; Italy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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