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Intra-household inequality and tax planning of same-sex couples

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  • Johannes Koeckeis

    (Fraunhofer Institute for Applied Information Technology FIT
    FAU Erlangen-Nuernberg)

Abstract

In this paper, I present differences in income, intra-household inequality and tax planning between mixed and same-sex couples. By using unique administrative tax data, I find that household incomes of same-sex couples are significantly higher than those of heterosexual couples. While there is no difference in intra-household inequality between heterosexual couples and male same-sex couples, lesbian couples have significantly lower intra-couple income inequality. This is in line with previous research. When it comes to tax planning, there are major differences between heterosexual couples and homosexual couples. While tax planning in heterosexual couples often leads to a high marginal tax burden for the secondary earner, this is not the case for same-sex couples.

Suggested Citation

  • Johannes Koeckeis, 2022. "Intra-household inequality and tax planning of same-sex couples," GRAPE Working Papers 73, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:73
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    File URL: http://grape.org.pl/WP/73_Kockeis_website.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Economics of Gender; Household Income Gap; Sexual Orientation; Tax Planning;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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