An analysis of the impact of tax and welfare reform measures on effective marginal tax rates in Australia 1982-2002

Dockery, A, Ong, R, Flatau, P and Wood, G 2008, 'An analysis of the impact of tax and welfare reform measures on effective marginal tax rates in Australia 1982-2002', Australian Journal of Labour Economics, vol. 11, no. 3, pp. 203-226.


Document type: Journal Article
Collection: Journal Articles

Title An analysis of the impact of tax and welfare reform measures on effective marginal tax rates in Australia 1982-2002
Author(s) Dockery, A
Ong, R
Flatau, P
Wood, G
Year 2008
Journal name Australian Journal of Labour Economics
Volume number 11
Issue number 3
Start page 203
End page 226
Total pages 24
Publisher Centre for Labour Market Research
Abstract This paper uses a microsimulation model that permits interactions between taxes,government benefits and housing assistance parameters and data from various releases of the Survey of Income and Housing Costs to illustrate how the distribution of effective marginal tax rates has varied between the years of 1982, 1996, 2000 and 2002. The policy impact of changes in the tax-benefit system on effective marginal tax rates is then assessed by applying the real tax-benefit parameters from 1982, 1996 and 2002 to the household composition and income data from a base year (2000). The findings indicate that effective marginal tax rates have increased over the long-term. Even when the impacts of tax-benefit changes are isolated from changes in the composition of the population, policy changes have been insufficient to counteract increases in effective marginal tax rates that have been caused by compositional changes.
Subject Public Economics- Taxation and Revenue
Labour Economics
Keyword(s) Welfare and Poverty: Government Programs
Provision and Effects of Welfare Programs Labor and Demographic Economics
General Personal Income and Other Nonbusiness Taxes and Subsidies
includes inheritance and gift taxes
ISSN 1328-1143
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