Tax planning of married couples and intra-household income inequality

Buettner, Thiess; Erbe, Katharina; Grimm, Veronika

doi:10.1016/j.jpubeco.2019.104048

Cited by 6 publications

(5 citation statements)

References 34 publications

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“…He demonstrates that a significant amount of the inheritance tax was avoided, especially by individuals who received the highest inheritances. Buettner et al (2019) examines married couples' tax planning under separate taxation, and they discovered that if tax planning is linked to a greater fall in the net-of-tax income of the secondary earner, a couple is less likely to choose the tax-minimizing strategy. This holds true whether the primary earner is the husband or the wife.…”

Section: Special Scenariosmentioning

confidence: 99%

“…From the forgoing, we observed that (Wrede, 2014); (Sommer, 2017); (Escobar, 2017) and (Erixson & Escobar, 2020) focused more on tax planning relating to inheritance, they had individual findings, though we observed how related were the findings. Buettner et al (2019) on the other hand, highlighted tax planning relating to married couple under separate taxation.…”

Section: Special Scenariosmentioning

confidence: 99%

“…In more recent researches on personal income tax planning, quite a number of authors now focus on more specific and unique areas of this type of tax, these areas may include wealth transfer e.g., inheritance and bequeath, gifts and donations etc (Sommer, 2017). Spousal bequest (Escobar, 2017) and (Buettner et al, 2019), how tax planning of owners of SME's affects them and their businesses (Nyk, 2016); (Agostini et al, 2018). Thus, there is deficiency of a more encompassing and systematic review that takes these new approaches into account.…”

Section: Introductionmentioning

confidence: 99%

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Tax Planning in Personal Income Tax: A Systematic Literature Review

Umar,

Prawira,

Kustiawan

2023

jpak

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The systematic literature review analyses and synthesizes research conducted regarding personal income tax planning within the time period of 2012 to 2022, 30 articles were reviewed. The review discovered that most of the articles dwelled mostly on unincorporated businesses and their owners/entrepreneurs/sole proprietors/investors as well as those articles that discussed issues relating to tax authorities’ regulations on personal income tax. The articles reviewed, gave insights on issues relating to personal income tax planning of wealth transfers, such as inheritance and bequest; gifts and inta-vivos; deathbed planning, etc. Importantly, they provided insights into how unincorporated businesses and entrepreneurs can optimize their disposable income through good personal income tax planning. In addition to the above, it highlighted such financial instruments that were resorted to, the most by taxpayers, which made their personal income tax planning more effective. (life insurance policies are the most widely used tax-saving tool, followed by provident funds and tax-saving fixed deposits, loans for homes and schools, National Savings Certificates, unit-linked insurance plans, health insurance plans, and equity-linked savings schemes, Infrastructure Bonds, in that order); we also found out that government strategies that influenced tax planning in favour of the state include: cooperation, increased uncertainty, creation of models, and maintaining a friendly atmosphere to avoid aggressive tax planning and improve revenue. Finally, direction for future research was suggested.

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Section: Special Scenariosmentioning

confidence: 99%

Section: Special Scenariosmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Tax Planning in Personal Income Tax: A Systematic Literature Review

Umar,

Prawira,

Kustiawan

2023

jpak

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“…This paper contributes to the literature in three ways. First, existing studies focus on substantive policies such as land planning and tax changes ( Sivadasan and Slemrod, 2008 ; Wei et al, 2017 ; Buettner et al, 2019 ; Huang et al, 2021 ), and few studies focus on the effect of tourism on income inequality at the regional level ( Li et al, 2016 ; Lv, 2019 ; Chi, 2020 ). To our knowledge, this paper is among the first to use the destination image to identify tourism resources or tourism development and examine the effect of the destination image on income and income inequality at a household level.…”

Section: Introductionmentioning

confidence: 99%

The Effect of the Image of Destinations on Household Income and Distribution: Evidence From China’s Tourist Cities

Zhang

Yin

et al. 2022

Front. Psychol.

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This paper examines the effect of the image of destinations on the wage income of resident households, and the corresponding income inequality, from a novel perspective. This work uses China’s excellent tourism city image program, which is an urban planning policy implemented by the central government across cities to enhance the image of the city destination in the minds of tourists, and then promote tourist motivation and local tourism development to assess the effect on household wage income and its distribution. Results show that the program significantly increases household wage income by increasing employment opportunities, promoting business and population agglomeration, and improving urban infrastructure. Additionally, the image of the city destination promotion causes an increase in income inequality among households.

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“…In particular, the ongoing debate about the ‘marriage bonus’ or ‘single penalty’ in the United States (US) tax system constitutes the majority of the literature (Alm and Leguizamon, 2015). Ultimately, research on the direct link between horizontal inequality and taxation remains dominantly interested in the interaction of tax benefits and labour market participation (Bick and Fuchs-Schündeln, 2018; Buettner et al, 2019; Dingeldey, 2001; Figari et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

The Taxation of Families: How Gendered (De)Familialization Tax Policies Modify Horizontal Income Inequality

Schechtl

2021

J. Soc. Pol.

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A welfare state’s tax system does not solely redistribute from rich to poor (vertical) but also between family types (horizontal). Different types of families are treated differently due to gendered (de)familialization policies in the tax code, such as joint filing for spouses or single-parent relief. In this study I aim to examine the tax system’s modification of horizontal income inequality between the six most prevalent family types of non-retiree households. To answer my research aim I draw on harmonized data from 30 countries provided by the Luxembourg Income Study (LIS). I estimate pre- and post-fiscal income inequality measured as between-family-type Theil indices. Using multivariate linear regression, I examine the association of the percentage change in inequality and the prevalence of family type-related tax characteristics. The results show that welfare states with familialization tax policies reduce less horizontal income inequality compared to welfare states without familialization tax policies. As familialization tax policies provide additional benefits for breadwinners with dependents, they discourage labour market participation of secondary earners and might exacerbate gender inequalities.

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Tax planning of married couples and intra-household income inequality

Cited by 6 publications

References 34 publications

Tax Planning in Personal Income Tax: A Systematic Literature Review

Tax Planning in Personal Income Tax: A Systematic Literature Review

The Effect of the Image of Destinations on Household Income and Distribution: Evidence From China’s Tourist Cities

The Taxation of Families: How Gendered (De)Familialization Tax Policies Modify Horizontal Income Inequality

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