Year: 2013
Type: article
Abstract: A neglected implication of the choice of the tax unit is its impact on the consumption risk carried by taxpayers. As compared to individual taxation, joint taxation with income splitting provides couples with more insurance against the risk of earning inability for one of the spouses. If that risk is not insurable in markets and labor supply is exogenous, a change from individual taxation to joint taxation with income splitting can raise all couples expected welfare.
Author: Giacomo Corneo
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3124857934