Carlo Fiorio: One step forward and three steps back: pros and cons of a flat tax reform (Online)

10 October 2022 | 12:00 — 13:00

FBK-IRVAPP is pleased to invite you to the following seminar: One step forward and three steps back: pros and cons of a flat tax reform

With the participation of Carlo Fiorio, University of Milan and FBK-IRVAPP

Language: the seminar is held in English.

Abstract: We use a rich administrative dataset on individual tax returns from 2008 to 2015 to analyse the behavioural and distributive effects of a flat tax (FT) reform introduced in 2011 for residential property income in Italy replacing the progressive personal income tax. Linking a panel of individual tax data with cadastral property records, and using a difference-in-difference identification strategy, we address five research questions: (i) does the FT increase the probability of declaring a positive rental income to the tax authorities? (ii) does the FT increase the declared tax base? (iii) is the reduced tax burden shared with the tenant? (iv) does the FT affect the overall tax revenue? (v) who are the gainers of the policy? The estimated intention-to-treat effects suggest that the decrease of tax evasion is limited whereas tax burden reduction is large, it is not shared with tenants and it mostly benefits top-income taxpayers. Overall, top 1% of property owners reap about 20% of the overall lost tax revenues.

 

Speakers

  • Speaker
    IRVAPP
    Carlo Fiorio is currently a Senior researcher at Irvapp and a Professor of Public Economics at the University of Milan, where he is head of the Department of Economics, Management and Quantitative Methods. He received a PhD in Economics at the London School of Economics. His research interests include Public Economics, Applied Econometrics, Inequality Analysis, Labour Economics. At IRVAPP, he developed and coordinates TREMOD, a tax-benefit microsimulation model for the Italian province of Trento (Italy).

Registration

Registration to this event is mandatory.

Registration closed on 10/10/2022.

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