ANALYSING THE DISTRIBUTIONAL IMPACT OF INDIRECT TAXES: A NEW APPROACH FOR IRELAND. ESRI Research Bulletin 2017/07

Savage, Michael (2017) ANALYSING THE DISTRIBUTIONAL IMPACT OF INDIRECT TAXES: A NEW APPROACH FOR IRELAND. ESRI Research Bulletin 2017/07. UNSPECIFIED.

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Abstract

When considering changes to tax policy, it is important to know who is likely to be affected and to what extent. Simulating the effects of changes in direct taxation (e.g. income tax) requires reliable data on incomes, while simulating the effects of changes in indirect taxation (e.g. VAT) requires reliable data on expenditure. Because no single Irish data set contains detailed information on both household incomes and expenditures, simulating the overall impact of both direct and indirect taxes for different income and social groups can be difficult. The present paper applied a method for estimating household expenditure and matching it to household income data. It is hoped that the method will improve our ability to simulate the impacts of proposed or actual changes in taxes in Ireland.

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