In this study, we assess the relationship between several tax items and consumption
and income inequality levels. For OECD countries between 1980 and 2015, we
use panel data techniques and find tax threshold values regarding inequality levels
and consumption. In particular, we obtain threshold values for social security contributions
between 9.50 and 11.80% (of GDP), for long-run consumptions, while
to promote a reduction in income inequalities we found a 15.51% share of social
security contributions over GDP, in both short- and long-term perspectives. Lastly,
our results would support higher taxes on firms, in GDP terms, to decrease income
inequalities, although that might hamper aggregate consumption.info:eu-repo/semantics/publishedVersio