The Spanish Personal Income Tax: Facts and Parametric Estimates

64 Pages Posted: 16 Jul 2019

See all articles by Esteban García-Miralles

Esteban García-Miralles

University of Copenhagen - Department of Economics

Nezih Guner

Centre for Monetary and Financial Studies (CEMFI)

Roberto Ramos

Banco de España

Date Written: July 16, 2019

Abstract

In this paper, we use administrative data on tax returns to characterize the distributions of before and after-tax income, tax liabilities, and tax credits in Spain for individuals and households. We use the most recent available data, 2015 for individuals and 2013 for households, but also discuss how the income distribution and taxes have changed since 2002. We also estimate effective tax functions that capture the underlying heterogeneity of the data in a parsimonious way. These parametric functions can be used to calculate after-tax incomes in surveys where this information is not directly available, and can also be used in quantitative work in macroeconomics and public finance.

Keywords: personal income tax, tax functions, income distribution

JEL Classification: E62, H24, H3

Suggested Citation

García-Miralles, Esteban and Guner, Nezih and Ramos, Roberto, The Spanish Personal Income Tax: Facts and Parametric Estimates (July 16, 2019). Banco de Espana Working Paper No. 1907 (2019), Available at SSRN: https://ssrn.com/abstract=3420702 or http://dx.doi.org/10.2139/ssrn.3420702

Esteban García-Miralles

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5, Bygn 26
Copenhagen, 1353
Denmark

Nezih Guner

Centre for Monetary and Financial Studies (CEMFI) ( email )

Casado del Alisal 5
28014 Madrid
Spain

Roberto Ramos (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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