Inequality and Redistribution in the Netherlands

This paper combines detailed administrative records on the universe of the Dutch population with national accounts aggregates to provide a thorough description of income inequality before and after taxation and government spending. Accounting for domestic andforeign retained earnings has a substantial impact on inequality, raising the top 10% share of pre-tax national income from 29% to 31%. Overall, the tax system is regressive due to high consumption taxes and a low tax burden on capital income. The entire reduction in inequality - the top 10% income share falls to 26% - comes from governmen... Mehr ...

Verfasser: Bruil, Arjan
van Essen, Celine
Leenders, Wouter
Lejour, Arjan
Möhlmann, Jan
Rabaté, Simon
Dokumenttyp: preprint
Erscheinungsdatum: 2022
Verlag/Hrsg.: HAL CCSD
Schlagwörter: inequality / income / redistribution / tax system / Netherlands / [SHS]Humanities and Social Sciences
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29158199
Datenquelle: BASE; Originalkatalog
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Link(s) : https://hal.archives-ouvertes.fr/hal-03869680

This paper combines detailed administrative records on the universe of the Dutch population with national accounts aggregates to provide a thorough description of income inequality before and after taxation and government spending. Accounting for domestic andforeign retained earnings has a substantial impact on inequality, raising the top 10% share of pre-tax national income from 29% to 31%. Overall, the tax system is regressive due to high consumption taxes and a low tax burden on capital income. The entire reduction in inequality - the top 10% income share falls to 26% - comes from government spending that is targeted at the bottom of the distribution