Personal Income Tax: Top statutory and marginal tax rates for employees (Edition 2016)

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

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Optimal progressivity of personal income tax: a general equilibrium evaluation for Spain

SERIEs ◽

10.1007/s13209-020-00226-0 ◽

2020 ◽

Vol 11 (4) ◽

pp. 407-455 ◽

Cited By ~ 1

Author(s):

Darío Serrano-Puente

Keyword(s):

General Equilibrium ◽

Income Tax ◽

Optimal Level ◽

Personal Income ◽

Tax Rates ◽

Personal Income Tax ◽

Negative Effects ◽

Spanish Economy ◽

Current Scenario ◽

The Cost

AbstractIs the Spanish economy positioned at its optimal progressivity level in personal income tax? This article quantifies the aggregate, distributional, and welfare consequences of moving toward such an optimal level. A heterogeneous households general equilibrium model featuring both life cycle and dynastic elements is calibrated to replicate some characteristics of the Spanish economy and used to evaluate potential reforms of the tax system. The findings suggest that increasing progressivity would be optimal, even though it would involve an efficiency loss. The optimal reform of the tax schedule would reduce wealth and income inequality at the cost of negative effects on capital, labor, and output. Finally, these theoretical results are evaluated using tax microdata and describe a current scenario where the income-top households typically face suboptimal effective average tax rates.

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Personal Income Tax: Central government tax rates and thresholds (Edition 2018)

OECD Tax Statistics ◽

10.1787/a56c9c20-en ◽

2017 ◽

Keyword(s):

Income Tax ◽

Central Government ◽

Personal Income ◽

Tax Rates ◽

Personal Income Tax

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EUROPEAN PRIORITIES FOR PERSONAL INCOME TAXATION

WORLD OF FINANCE ◽

10.35774/sf2020.02.077 ◽

2020 ◽

pp. 77-87

Author(s):

Fedir TKACHYK ◽

Victoriia OSTAPCHUK

Keyword(s):

Income Tax ◽

Personal Income ◽

European Countries ◽

Income Taxation ◽

Social Aspects ◽

Tax Rates ◽

The European Union ◽

Personal Income Tax ◽

Important Place ◽

Personal Income Taxation

Introduction. In the current conditions of globalization of socio-economic development and formation of a new financial civilization, social aspects of tax policy take a important place. The system of taxation of income of citizens in Ukraine today is not fully coping with the performance of their functions. The experience of developed European countries on the formation of an effective mechanism of taxation of personal income will contribute to the establishment of the newest social and fiscal-oriented paradigm of taxation of citizens in Ukraine. The increased interest in the procedures for administering the personal income tax is also explained by the fact that this tax is one of the main sources of income to the budget of Ukraine. The purpose is to determine the peculiarities of taxation of personal income tax in Ukraine, to find out the common and different features tax system in Ukraine and European countries, to systematize recommendations on improving the mechanism of taxation of personal income. Results. The international typology of personal income tax systems is given. The general features of personal income taxation and mechanisms of application of personal income tax rates in some countries of the European Union are considered. It is argued that the implementation of the European tax experience will facilitate a faster transition to a new and effective system of personal income taxation in Ukraine. To improve personal income taxation in Ukraine, it is necessary to revise personal income tax rates, increase the amount of tax-free minimum incomes, ensure the full functioning of electronic declaration of personal incomes, optimize concessional policies, increase tax literacy and tax culture. Prospects. Further research will focus on the social aspects of taxing citizens' income in terms of differentiation of tax rates, the logic of using preferences in taxing personal income, the introduction of an effective threshold of the non-taxable minimum income, promoting the right to tax rebates, etc.

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