Coronavirus, Taxation, and Regional Inequality

Abstract

The article analyzes the total distributive effects of the Global Complementary Tax (IGC) by region, comparing them with the Regional Human Development Index (RHDI), which we use as a proxy for the distributive effect of state spending on health, education, and household income. We also compare COVID-19 fatality data, identifying that in the first phase of the pandemic up to May 2020 the worst-affected regions were generally those with negative gaps between their IGC contribution and the RHDI.