Please use this identifier to cite or link to this item:
http://hdl.handle.net/2445/189192
Title: | Income tax progressivity and inflation during the world wars |
Author: | Torregrosa-Hetland, Sara Sabaté Domingo, Oriol |
Keywords: | Guerra Mundial I, 1914-1918 Guerra Mundial II, 1939-1945 Impost sobre la renda de les persones físiques Inflació World War, 1914-1918 World War, 1939-1945 Personal income tax Inflation |
Issue Date: | 1-Aug-2022 |
Publisher: | Oxford University Press |
Abstract: | This paper studies the impact of inflation on income taxes in Sweden, the UK, and the United States during the world wars. As tax reforms were rising top marginal rates and reducing exemption thresholds, extraordinary levels of inflation eroded the real value of exemptions, brackets, and deductions. The micro-simulation of actual and alternative scenarios shows that inflation made the tax less progressive, particularly in Sweden during World War I and the UK during World War II. Nevertheless, its redistributive effect increased due to the related growth in tax revenue. Inflation contributed to transform a 'class tax'' into a 'mass tax'. |
Note: | Reproducció del document publicat a: https://doi.org/10.1093/ereh/heab020 |
It is part of: | European Review of Economic History, 2022, vol. 26, num. 3, p. 311-339 |
URI: | http://hdl.handle.net/2445/189192 |
Related resource: | https://doi.org/10.1093/ereh/heab020 |
ISSN: | 1361-4916 |
Appears in Collections: | Articles publicats en revistes (Història Econòmica, Institucions, Política i Economia Mundial) |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
720763.pdf | 829.56 kB | Adobe PDF | View/Open |
This item is licensed under a Creative Commons License