however the negative effect of direct taxes is estimated to be of a lower magnitude in the case of household incomes compared with gdp per capita the decomposition of direct taxes between the personal and corporate tax components indicates that their combined negative impact is driven by the personal income tax component however no significant effect on average household income is found the estimated neutral real household income effects from consumption and property taxes holds for median income and income of the lowermiddle class but there is some evidence of positive effects on income of the poor possibly reflecting lower tax wedges and unemployment