Corpus ID: 16859824

Flat Tax Reforms in the Us: A Boon for the Income Poor

@article{Gimnez2006FlatTR,
  title={Flat Tax Reforms in the Us: A Boon for the Income Poor},
  author={Javier D{\'i}az Gim{\'e}nez and Josep Pijoan-Mas},
  journal={Macroeconomics eJournal},
  year={2006}
}
In this article we quantify the aggregate, distributional and welfare consequences of two revenue neutral flat-tax reforms using a model economy that replicates the U.S. distributions of earnings, income and wealth in very much detail. We find that the less progressive reform brings about a 2.4% increase in steady state output and a more unequal distribution of after-tax income. In contrast, the more progressive reform brings about a -2.6% reduction in steady state output and a distribution of… Expand
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