Income tax revenues soar in Spain after fiscal reform, study finds.
The study looked at how changes in income affect income tax revenues in Spain from 2003 to 2008, focusing on a major tax reform in 2007. They found that income tax revenues became more responsive to changes in income, increasing from 1.4 to 1.8. The results also considered factors like housing tax credits, income inequality, and fiscal drag. Overall, the study suggests that fiscal reforms can significantly impact the elasticity of income tax revenues.