US Inequality and Fiscal Progressivity: An Intragenerational Accounting

• 成果类型: Article
• 署名作者: Auerbach, Alan J. J.; Kotlikoff, Laurence J. J.; Koehler, Darryl
• 署名单位: University of California System; University of California Berkeley; Boston University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/722394
• 发表日期: 2023
• 页码: 1249-1293
• 关键词: borrowing constraints; social-security; consumption; lifetime; earnings; Deficit; income

摘要

This study measures spending power inequality within age cohorts and estimates fiscal progressivity via lifetime net tax rates. We find, first, that inequality in income and especially wealth dramatically overstates inequality in spending power. Second, inequality in current spending power differs from that in lifetime spending power because of credit constraints, in-kind government benefits, and other factors. Third, the US fiscal system is highly progressive once cohorts are old enough to have highly dispersed human wealth. Fourth, households' rankings based on current income can differ substantially from their rankings based on lifetime resources. Fifth, current-year net tax rates substantially understate fiscal progressivity.