scholarly journals Income Inequality and Progressive Income Taxation in China and India, 1986–2015

2009 ◽  
Vol 1 (2) ◽  
pp. 53-63 ◽  
Author(s):  
Thomas Piketty ◽  
Nancy Qian
Keyword(s):  
Income Inequality ◽  
Income Tax ◽  
Chinese Population ◽  
Income Taxation ◽  
Income Growth ◽  
Tax Reforms ◽  
China And India ◽  
Tax Revenues ◽  
Progressive Income Taxation ◽  
A Share

This paper evaluates income tax reforms in China and India. The combination of fast income growth and under-indexed tax schedule in China implies the fraction of the Chinese population subject to income tax has increased from less than 0.1 percent in 1986 to about 20 percent in 2008, while it has stagnated around 2–3 percent in India. Chinese income tax revenues, as a share of GDP, increased from less than 0.1 percent in 1986 to about 1.5 percent in 2005 and 2.5 percent in 2008, while the constant adaptation of exemption levels and income brackets in India have caused them to stagnate around 0.5 percent of GDP. (JEL D31, H24, 015, 023, P23, P35)

Book Reviews

2011 ◽  
Vol 49 (1) ◽  
pp. 136-138
Keyword(s):  
Income Inequality ◽  
Global Perspective ◽  
Income Taxation ◽  
China And India ◽  
Top Incomes ◽  
Boston University ◽  
English Speaking ◽  
Progressive Income Taxation ◽  
Income Concentration

Robert A. Margo of Boston University and NBER reviews “Top Incomes: A Global Perspective” edited by A. B. Atkinson and T. Piketty. The EconLit Abstract of the reviewed work begins, “Thirteen papers examine top incomes in ten OECD countries and focus on the contrast between continental Europe and English-speaking countries. Papers discuss top Indian incomes, 1922-2000; income inequality and progressive income taxation in China and India, 1986-2015; the evolution of income concentration….”

scholarly journals Personal Income Taxation Determinants in Federation of Bosnia and Herzegovina

2019 ◽  
Vol 10 (1) ◽  
pp. 153-163
Author(s):  
Irena Palić ◽  
Sabina Hodžić ◽  
Ksenija Dumičić
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Error Correction ◽  
Bosnia And Herzegovina ◽  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Personal Income Tax ◽  
The Impact ◽  
Personal Income Taxation

Abstract Background: In recent years’ income inequality has been an economic issue. The primary instrument for redistributing income is personal income tax. However, based on economic theory income inequality concerns indicators such as wages, transfer payments, taxes, social security contributions, and geographical mobility. Objectives: The objective of this paper is to examine the impact of certain labor market indicators on personal income taxation in Federation of Bosnia and Herzegovina (FB&H). Methods/Approach: Since personal income taxation consists of a very broad definition and for the purpose of this research only, income from dependent (employment) activity is observed. The econometric analysis is conducted using error correction modeling, as well as forecast errors variance decomposition. Results: The error correction model is estimated, and the cointegrating equation indicates that monthly wage and number of employees statistically significantly positively affect personal income taxes in FB&H in the long-run. After two years, the selected labor market indicators explain a considerable part of forecasting error variance of personal income tax revenues. Conclusions: The implementation of reforms in the labor market and tax policies of the FB&H is suggested. In order to achieve necessary reforms, efficient governance and general stable political environment are required.

scholarly journals Agricultural Income Taxation: Estimation of the Revenue Potential in Punjab

2012 ◽  
Vol 51 (4II) ◽  
pp. 321-337 ◽  
Author(s):  
Anjum Nasim
Keyword(s):  
Income Tax ◽  
Animal Husbandry ◽  
Income Taxation ◽  
Constitutional Amendment ◽  
Policy Decisions ◽  
Agricultural Income ◽  
Tax Revenues ◽  
Agriculture Land ◽  
Crop Farming ◽  
Definition Of

In May 2011 a senator of the Muttahida Quami Movement (MQM), moved a private member’s constitutional amendment bill to remove the exemption provided to agricultural incomes from federal income taxation. The proposed amendment mentioned a potential revenue of Rs 200 billion from Agricultural Income Tax (AIT). This figure, however, differs widely from some other reported estimates of potential agricultural income tax.1 The issue of AIT is likely to echo again in the parliament and outside as Pakistan grapples with the issue of its low tax revenues. It is, therefore, important to carefully analyse the potential revenue from AIT to allow more informed discussion and policy decisions on tax options at the federal and provincial levels. The 1973 Constitution of Pakistan gives provincial assemblies the exclusive power to make laws pertaining to taxes on agricultural income.2 Agricultural income could be interpreted narrowly to include crop farming and rental income from land, or more broadly to include income from livestock and animal husbandry. There is no ambiguity that income from the narrower interpretation falls within the domain of provincial taxation though there may be room for debate whether the provincial jurisdiction extends to the broader definition of agricultural income or not [see Nasim (2012)]. Since 1996-97 all four provinces have instituted some form of tax on agriculture land or incomes. In its implementation this tax is largely a land tax (based on acreage) rather than a tax on agricultural income.

scholarly journals Closing the Gap

2019 ◽  
Vol 10 ◽  
pp. 80-90
Author(s):  
Daniel Ribi
Keyword(s):  
Income Inequality ◽  
Income Tax ◽  
World Economy ◽  
Personal Income Tax ◽  
Tax Reforms ◽  
Political Issue ◽  
New Approach ◽  
Advanced Economies ◽  
Closing The Gap ◽  
Globalized World

Rising income inequality is a pressing political issue in Canada and internationally. Yet, policymakers in advanced economies have thus far failed to meaningfully address the issue. Tax policy is one of the primary tools available for governments to structure local distributive realities, but there is uncertainty regarding the ability of governments to take effective action in a globalized world economy. This policy brief puts forward viable reforms. The Canadian federal government can mitigate income inequality in Canada through targeted corporate and personal income tax reforms and a new approach to compliance enforcement.

scholarly journals ‘Tax the rich’? The financial crisis, fiscal fairness, and progressive income taxation

2019 ◽  
Vol 11 (3) ◽  
pp. 319-336 ◽  
Author(s):  
Julian Limberg
Keyword(s):  
Financial Crisis ◽  
Income Tax ◽  
Income Taxation ◽  
Personal Income Tax ◽  
Difference In Differences ◽  
Data Set ◽  
Tax Progressivity ◽  
Percentage Points ◽  
The Rich ◽  
Progressive Income Taxation

AbstractHas the financial crisis influenced taxes on the rich? In this article, I argue that crisis countries have raised income tax progressivity because of fiscal fairness considerations. I test this claim by analysing a new data set on top marginal personal income tax (PIT) rates for 122 countries from 2006 to 2014, applying matching methods and a difference-in-differences design. The results show that countries with a financial crisis have increased top PIT rates by 4 percentage points. Furthermore, rising public debt only leads to higher top PIT rates when it is crisis-induced. These findings demonstrate that notions of fiscal fairness can still shape progressive taxation in the 21st century.

scholarly journals The stability of income inequality in Brazil, 2006-2012: an estimate using income tax data and household surveys

2015 ◽  
Vol 20 (4) ◽  
pp. 971-986 ◽  
Author(s):  
Marcelo Medeiros ◽  
Pedro Herculano Guimarães Ferreira de Souza ◽  
Fábio Ávila de Castro
Keyword(s):  
Income Inequality ◽  
Income Tax ◽  
Household Survey ◽  
Income Growth ◽  
Personal Income Tax ◽  
Total Income ◽  
Top Incomes ◽  
Tax Returns ◽  
National Household Survey ◽  
The Stability

Object: the level and evolution of income inequality among adults in Brazil between 2006 and 2012.Objectives: to calculate the level of inequality, its trend over the years and the share of income growth appropriated by different social groups.Methodology: We combined tax data from the Annual Personal Income Tax Returns (Declaração Anual de Ajuste do Imposto de Renda da Pessoa Física - DIRPF) and the Brazilian National Household Survey (Pesquisa Nacional por Amostra de Domicílios - PNAD) to construct a complete distribution of total income among adults in Brazil. We applied Pareto interpolations to income tax tabulations to arrive at the distribution within income groups. We tested the results, comparing the PNAD to the Brazilian Consumption and Expenditure Survey (Pesquisa de Orçamentos Familiares - POF) and to data from the Census Subsample Survey (Census.Results: We found evidence that income inequality in Brazil is higher than previously thought and that it remained stable between 2006 and 2012; in making these findings, we thus diverged from most studies on the dynamics of inequality in Brazil.. There was income growth, but the top incomes have appropriated most of this growth.

scholarly journals Tax reforms and income inequality in former Yugoslav countries: Escaping the avant-garde neoliberalism in the income tax policy

2021 ◽  
Vol 68 (2) ◽  
pp. 231-252
Author(s):  
Jelena Zarkovic-Rakic ◽  
Marko Vladisavljevic
Keyword(s):  
Income Inequality ◽  
Income Tax ◽  
Tax Reforms ◽  
Avant Garde ◽  
Top Incomes ◽  
Low Incomes ◽  
Income Tax Policy ◽  
Microsimulation Modeling ◽  
Redistributive Effects ◽  
Income Tax Reform

After the breakup of former Yugoslavia Croatia, Serbia and Slovenia followed different income tax reform trajectories that could explain currently different levels of income inequality in these countries. Our paper analyzes redistributive effects of introducing progressive tax systems, like the ones currently implemented in Slovenia and Croatia, in the Serbian context. Using microsimulation modeling and Survey on Income and Living Conditions data for 2017 our results suggest that implementation of both Croatian and Slovenian tax system would yield lower levels of income inequality and poverty if applied in Serbia. Slovenian system achieves larger decrease in inequality due to higher tax burden on the top incomes and brings significant increase in tax revenues. Croatian tax schedule achieves stronger decrease in poverty as more generous personal allowance exempt higher portions of low incomes from labour taxes.

PROSPECTS FOR PROGRESSIVE INCOME TAXATION IN RUSSIA

2020 ◽  
Vol 13 (4) ◽  
pp. 216-222
Author(s):  
S.N. Sajfieva ◽  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Financial Analysis ◽  
Point Of View ◽  
Income Taxation ◽  
Social Orientation ◽  
Tax Base ◽  
Qualitative Approaches ◽  
Coronavirus Infection ◽  
Progressive Income Taxation

The subject of the study is the analysis of current income taxation and assessment of the prospects for the introduction of a progressive tax scale in the Russian Federation. The main purpose of the work is to identify the reserves of the Russian income tax system in order to replenish budget revenues in the fight against coronavirus infection. When performing the research, a combination of quantitative and qualitative approaches and the method of financial analysis used. The new progressive system of income taxation analyzed from the point of view of the postulates of classical 222 Экономические системы. 2020. № 4 Economic Systems. 2020. No. 4 economic theory. Official statistics in the field of calculating nominal and real average monthly wages of employees in Russia as a whole by its subjects have been studied and summarized. The analysis of the current and new progressive income taxation introduced in Russia from January 1, 2021 performed. On a practical example, the mechanism for collecting income tax using flat and progressive scales considered, and the approximate revenue received from one taxpayer is calculated. The disadvantages of the newly introduced tax measure identified and generalized a narrow tax base, a low maximum rate, and the preservation of taxation of low-income segments of the population. The introduced system of progressive income taxation does not provide incentive levers, such as amounts of non-taxable income (in addition to the standard deductions mentioned above), and does not contain tax breaks on invested income. Based on the analysis of a representative body of scientific literature on the problem of improving the efficiency of income taxation, some possible solutions proposed. The proposals formulated in the article used to improve the system of income taxation in the future to increase its effectiveness, strengthen social orientation, and the predominance of the incentive function over the fiscal one.

Sign in / Sign up

Export Citation Format

Share Document