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Formula for revenue equalization with progressive redistribution rates
Résumé Revenue equalization consists of reducing disparity in taxing power
between cantons or municipalities (hereafter administrative divisions)
within cantons, transferring fiscal revenue from strong taxing power
administrative divisions to weak taxing power administrative divisions. A method for revenue equalization leads a constant redistribution if the transferred amounts are computed independently from the taxing power of administrative divisions. By contrast, a method for revenue equalization leads a progressive redistribution if it takes the taxing power into account in the transferred amounts computation. Hence, the amounts transferred are negligible for administrative divisions with a taxing power close to the mean taxing power and these amounts increase as the taxing power of administrative divisions moves away from the mean taxing power. A formula for revenue equalization is proposed. This formula induces a progressive redistribution and makes it possible for the user to control the strength of the progressiveness. A method based on the Gini index is proposed in order to optimally tune the redistribution rates under some constraints.
   
Mots-clés Revenue equalization, Horizontal equalization, Fiscal revenue,
Revenue Disparities
   
Citation Graf, E., Hasler, C., & Jeanrenaud, C.(2015, 1 March). Formula for revenue equalization with progressive redistribution rates. Bulletin of the Swiss Statistical Society, 80, 2-9.
   
Type Article de magazine (Anglais)
Magazine Bulletin of the Swiss Statistical Society
Date de publication 1-3-2015
Volume 80
Pages 2-9