IMF Working Papers

A Comparative Analysis of the Structure of Tax Systems in Industrial Countries

By Assaf Razin, Enrique G. Mendoza, Linda L. Tesa

February 1, 1993

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Assaf Razin, Enrique G. Mendoza, and Linda L. Tesa A Comparative Analysis of the Structure of Tax Systems in Industrial Countries, (USA: International Monetary Fund, 1993) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

A methodology for computing effective average tax rates on factor incomes and consumption using OECD data from national accounts and revenue statistics is described and applied to construct time series of tax rates for the group of seven largest industrialized countries. These tax rates are compared with estimates of effective marginal tax rates obtained in other studies. The stylized facts that distinguish tax systems across countries are documented, and the co-movements between the tax rates and savings, investment, net exports, unemployment, and hours worked are also examined. The results of this analysis illustrate some of the potential implications of tax policies currently under consideration and suggest that the proposed tax rates are useful approximations to those faced by representative agents in dynamic macroeconomic models.

Subject: Average effective tax rate, Capital income tax, Consumption taxes, Income tax systems, Personal income tax, Tax policy, Taxes

Keywords: Average effective tax rate, Capital income tax, Capital tax rate, Consumption taxes, Factor income, Income tax, Income tax systems, Labor income, Labor income tax tax rate, North America, Personal income tax, Personal income tax rate, Physical capital, Rate of return, Revenue data, Statutory tax, Statutory tax rates, Tax income, Tax rate, Time series, Trade balance, WP

Publication Details

  • Pages:

    62

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1993/014

  • Stock No:

    WPIEA0141993

  • ISBN:

    9781451843040

  • ISSN:

    1018-5941

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