Why is useful to tax women less than men

[ Italica – Sabrina Patota ] – Italy’s new premier Mario Monti has just taken office and among the social reform of his new government there is a proposal known in labour literature as gender-based taxation or GBT. This reintroduces the debate on “why it is useful to tax women less than men”? According to taxation theory, a benevolent government should tax less individuals who have a more elastic labor supply. Therefore, as labour supply of women is more elastic than men’s, tax rates on labour income should be lower for women. This happens when different elasticities between men and women are taken as exogenous.

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Categories: Italy, Women Rights

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