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Does Tax Evasion Modify the Redistributive Effect of Tax Progressivity?

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This article shows how tax evasion modifies the redistributive effect of tax progressivity. The analysis, which is conducted by means of the standard tax evasion model, suggests a possible reduction of the redistributive effect of progressive income taxation. This issue is important to empirically evaluate and compare the redistributive effect of tax systems in economies with different tax evasion levels.
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Keywords: E62; H26

Document Type: Research Article

Affiliations: 1: Department of Economic Analysis, Group of Researchers in Empirical Economics, University of Vigo, Vigo, Spain 2: Department of Economic Analysis, University of Barcelona, Barcelona, Spain

Publication date: December 1, 2008

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