Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 2006 erstellt
Description:
This article draws up a portrait of effective marginal tax rates (EMTR) on labour income in Quebec. It aims at allowing a better understanding of the impact of tax policy on the behavior of economic agents. Using an accounting microsimulation model that reproduces the system of taxes and transfers in 2002 Quebec, we measure the EMTR that result from the interaction of the mechanisms of taxation and income redistribution. Moreover, we evaluate the distribution of EMTR in the population. The analysis of EMTR shows, inter alia, that family policy, whose assistance is targeted towards low-income families, generates high levels of EMTR ascribable to the generally fast reduction of transfers as income increases. More than a quarter of heads of single-parent households face an EMTR which can reach, and even exceed, 80%. As for the two-parent families, they mostly face EMTR of around 50%. We show the importance of accounting for EMTR heterogeneity, both with respect to types of families and levels of incomes, as well as evaluating the variability of EMTR in the population