Social Construction and the Progressivity of Local Tax Relief

37 Pages Posted: 3 Sep 2021

See all articles by Momi Dahan

Momi Dahan

Hebrew University of Jerusalem - School of Public Policy; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: 2021

Abstract

This paper reveals a noticeable difference between a high degree of progressivity of income-related local property tax relief versus the proportional or regressive incidence of recognition tax relief. Recognition tax relief is tax relief given to specified social sectors which recognizes either their contributions to society or their identity-related suffering. Social groups that are characterized by political power and positive image following social construction process are expected to receive more favorable tax treatment regardless of their material needs. This study advances our understanding by showing that the degree of progressiveness of a tax system is shaped by social construction which implies a more complex trade-off between equality, efficiency and social construction in designing the tax system.

Keywords: tax relief, property tax, tax progressivity, social construction

Suggested Citation

Dahan, Momi, Social Construction and the Progressivity of Local Tax Relief (2021). Available at SSRN: https://ssrn.com/abstract=3916638 or http://dx.doi.org/10.2139/ssrn.3916638

Momi Dahan (Contact Author)

Hebrew University of Jerusalem - School of Public Policy ( email )

Mount Scopus
Jerusalem 91905
Israel
972-2-5883709 (Phone)
972-2-5880047 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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