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 and foreign 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 governme... Mehr ...

Verfasser: Lejour, Arjan
Bruil, Arjan
van Essen, Celine
Leenders, Wouter
Mohlmann, Jan
Rabate, Simon
Dokumenttyp: workingPaper
Erscheinungsdatum: 2022
Verlag/Hrsg.: CPB Netherlands Bureau for Economic Policy Analysis
Schlagwörter: Inequality / Redistribution / Taxes / transfers / Netherlands
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29193387
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : https://research.tilburguniversity.edu/en/publications/519c59ad-da3d-4bd7-9d19-29bac20d9bc8

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 and foreign 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.