scholarly journals Digging into the Channels of Bunching: Evidence from the Uruguayan Income Tax

2021 ◽  
Author(s):  
Marcelo Bergolo ◽  
Gabriel Burdin ◽  
Mauricio De Rosa ◽  
Matias Giaccobasso ◽  
Martin Leites
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Base ◽  
Taxable Income ◽  
Labour Income ◽  
Elasticity Of Taxable Income ◽  
Personal Income Taxation

Abstract Based on detailed administrative tax records, we implement a bunching design to explore how individual taxpayers respond to personal income taxation in Uruguay. We estimate a very modest elasticity of taxable income at the first kink point (0.06) driven by a combination of gross labour income and deductions responses. Taxpayers use personal deductions more intensively close to the kink point and underreport income to the tax authority. Our results suggest that the efficiency costs of taxation are not necessarily large in contexts characterised by limited deduction opportunities. Policy efforts should be directed at broadening the tax base and improving enforcement capacity.

scholarly journals Beyond the Labour Income Tax Wedge: The Unemployment-Reducing Effect of Tax Progressivity

2014 ◽  
Author(s):  
Etienne Lehmann ◽  
Claudio Lucifora ◽  
Simone Moriconi ◽  
Bruno Van der Linden
Keyword(s):  
Income Tax ◽  
Tax Progressivity ◽  
Labour Income

scholarly journals Beyond the Labour Income Tax Wedge: The Unemployment-Reducing Effect of Tax Progressivity

2013 ◽  
Author(s):  
Etienne Lehmann ◽  
Claudio Lucifora ◽  
Simone Moriconi ◽  
Bruno Van der Linden
Keyword(s):  
Income Tax ◽  
Tax Progressivity ◽  
Labour Income

scholarly journals Beyond the labour income tax wedge: the unemployment-reducing effect of tax progressivity

2015 ◽  
Vol 23 (3) ◽  
pp. 454-489 ◽  
Author(s):  
Etienne Lehmann ◽  
Claudio Lucifora ◽  
Simone Moriconi ◽  
Bruno Van der Linden
Keyword(s):  
Income Tax ◽  
Tax Progressivity ◽  
Labour Income

scholarly journals A macroeconomic approach to estimating effective tax rates in South Africa

2004 ◽  
Vol 7 (1) ◽  
pp. 117-131 ◽  
Author(s):  
HA Amusa
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Effective Rate ◽  
Capital Inflows ◽  
Tax Revenue ◽  
Tax Rates ◽  
National Accounts ◽  
Capital Income ◽  
Effective Tax Rates ◽  
Labour Income

Using data contained in South Africa's national accounts and revenue statistics, this paper constructs time-series of effective tax rates for consumption, capital income, and labour income. The macroeconomic approach allows for a detailed breakdown of tax revenue accruing to general government and the corresponding aggregate tax bases. The methodology used also yields effective rate estimates that can be considered as being consistent with tax distortions faced by a representative economic agent within a general equilibrium framework. Correlation analysis reveals that savings (as a percentage of GDP) is negatively correlated with both capital income and labour income tax rates. Investment (as a percentage of GDP) is positively correlated with the capital income tax rate, an outcome suggestive of the direct relationship between volatile capital inflows into South Africa and capital tax revenue

scholarly journals Estimating the impact of income tax on personal savings in Serbia: The two channels approach

2016 ◽  
Vol 66 (2) ◽  
pp. 261-281
Author(s):  
Sasa Randjelovic
Keyword(s):  
Income Tax ◽  
Negative Impact ◽  
Empirical Evaluation ◽  
Rate Of Return ◽  
Capital Income ◽  
Marginal Tax Rate ◽  
Positive Effects ◽  
Labour Income ◽  
Personal Savings ◽  
The Impact

This paper provides an empirical evaluation of the effects of income taxation on personal savings in Serbia, by taking into account both transmitting channels: the direct impact of capital income tax on the rate-of-return and the indirect impact of labour income tax on disposable income. The estimated elasticity of bank deposits to the rate of return of 0.3 and the estimated elasticity of employment income to a labour tax wedge of −0.38 suggest that income tax function aimed at minimising the efficiency losses should not considerably differentiate the tax burden on labour and capital income. We show that in the case of the introduction of a revenue-neutral income tax, with a single marginal tax rate of 15% and considerably larger labour income exemption, households’ savings in Serbia would decline by 0.27%. This means that the negative impact of a rise in the capital income tax wedge on savings would prevail over the positive effects of a labour tax wedge cut. The results imply that the overall possibility to boost savings using tax policy is modest.

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