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Analysis of the Income Inequality Reduction Effect of the Income Tax System Through Model Simulation
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모형 시뮬레이션을 통한 소득세제의 소득불평등 완화 효과 분석

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Type
Academic journal
Author
김민정 (연세대학교) Young Jun Choi (연세대학교)
Journal
한국사회보장학회 사회보장연구 사회보장연구 제38권 제4호 KCI Accredited Journals
Published
2022.11
Pages
3 - 36 (34page)

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Analysis of the Income Inequality Reduction Effect of the Income Tax System Through Model Simulation
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As socio-political concerns about income insecurity and inequality increase, policy responses to these issues are also increasing. Despite alleviating inequality due to its own redistribution function, the tax system tends to receive relatively less attention compared to welfare policies when exploring ways to alleviate income inequality. Therefore, this study attempted to examine the role of the tax system as a measure to alleviate income inequality and as a means of raising financial resources. To this end, based on recent discussions and literature, we established alternative taxation models to test their different effects on alleviating income inequality and the possible financial resources each model could produce. The data of the 12th National Survey of Tax and Benefit was used for the analysis, and changes in income inequality were examined through simulations of the income tax model and the aggregate tax model. As a result, the model that abolished or reduced the tax relief elements showed a large effect on alleviating income inequality, and it is likely to secure more financial resources than other models. The results of this study are expected to give implications for reforming the Korean income tax system in the near future.

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