Measuring the Redistributive Capacity of Tax Policies
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Summary:
This paper presents a novel technique to measure and compare the redistributive capacity of observed tax (or transfer) policies. The technique is based on income distribution simulations and controls for differences in pre-tax income distributions. It assumes that the only information on the pre-tax distribution available in each country-year is the Gini coefficient and the mean (GDP per capita). We illustrate the technique with an application to the personal income tax, using a dataset of 108 countries over the 2007-2018 period.
Series:
Working Paper No. 2021/252
Subject:
Income Income distribution Income inequality National accounts Personal income tax Progressive taxation Tax policy Taxes
Frequency:
regular
English
Publication Date:
October 22, 2021
ISBN/ISSN:
9781589064089/1018-5941
Stock No:
WPIEA2021252
Pages:
28
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