Calendrier du 31 mai 2016
Applied Economics Lunch Seminar
Du 31/05/2016 de 12:30 à 13:30
Campus jourdan,Bâtiment G, Rez de chaussée, Salle 8
CARBONNIER Clément (U. Paris 8 Vincennes-St Denis, LED & Sciences Po, LIEPP)
Progressive profile of local taxes and territorial disparities of public goods and purchasing power
Local taxes'progresive profile may be determined through three main channels: i) the way tax bases are calculated, ii) the schedules of rates and iii) the differences of taxation between territories partially segregated on income. The present paper aims at documenting these issues, taking profit of local government accounting data, aggregate tax returns at the level of these jurisdictions and the European SILC survey on households living conditions. Housing tax has globally a slightly progressive profile because of exemptions and reductions (ii) and positive correlation between local tax burden per capita and local mean income (iii). This second progressivity determinant is driven by two causes: on the one hand, the central government equalization between local jurisdictions through an overall operating grant depending on local mean income; on the other hand, the positive correlation between the size of territories and both the mean income and the local public expenditure. Nevertheless, due to a regressive tax base (i) and a larger number of exempted households in lower income territories (iii), housing tax is regressive among non-exempted households. Similar qualitative results are found for land taxes, with a globally more regressive pattern. Taking local purchasing power into account leads to progressivity attenuation (or regressivity accentuation), but the qualitative results stands.