Horizontal equity in the German tax-benefit system
Bönke, Timm ;  Eichfelder, Sebastian ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleHorizontal equity in the German tax-benefit system
Subtitlea simulation approach for employees
AuthorBönke, Timm
AuthorEichfelder, Sebastian
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages39 S.
Series ; 2010,1 : Economics
Keywordshorizontal equity; family taxation; distributive justice; tax-benefit system; equivalent income
Classification (DDC)336 Public finance
AbstractWe analyze the distributive justice of the combined burden of taxes, social security
contributions and public transfers on employee households. In order to investigate whether
the treatment of families by the aggregate tax-benefit system can be regarded as “fair”, we
compare the equivalent incomes of eight different household types. Using the concepts of
system-inherent equivalence scales and horizontal equity we find evidence for a structural
discrimination of low income families, while families in the high income brackets tend to be
privileged. The equity in the treatment of a household type is not only affected by the amount
but also by the distribution of income between the household members. Based on these results
we can state a significant contradiction of value judgments within the German tax-benefit
system. From the perspective of our paper, there is no convincing justification for this
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Institut für Öffentliche Finanzen und Sozialpolitik
Year of publication2010
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2010-05-03 : 11:32:34
Last changed2016-01-05 : 02:38:18
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000005373