Curva de Laffer: El Caso de las Comunidades Autónomas de España (2010-2019)

José Torres Remírez; Luz Dary Ramírez Franco; Antonio Sánchez Andrés

doi:10.4067/S0718-88702024000200107

Authors

José Torres Remírez Universidad de las Hespérides https://orcid.org/0000-0002-2967-0548
Luz Dary Ramírez Franco Universidad de Valencia https://orcid.org/0000-0001-6886-4938
Antonio Sánchez Andrés Universidad de Valencia https://orcid.org/0000-0001-7303-5624

DOI:

https://doi.org/10.4067/S0718-88702024000200107

Keywords:

Elasticity, Optimal Taxation, Pareto Parameter, high income, Autonomous Regions

Abstract

Based on the “Laffer curve” hypothesis, this article studies the optimal top marginal tax rate on incomes above 150,000 euros per year for the Spanish Autonomous Regions under the common regime over the period 2010-2019. To this end, the methodology of Diamond and Saez (2011) is applied. The results show that personal income tax (IRPF) is on the prohibitive side of the Laffer curve and that it is a progressive tax for the highest income brackets. The main conclusion is that fiscal policy should be reoriented towards increasing revenue by lowering the tax burden in order to encourage investment and reduce the underground economy and tax fraud.

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