Personal Income Tax Research Papers (original) (raw)

Tax competition is supposed to lead to inefficiencies in the provision of public goods and difficulties for decentralized redistribution. A necessary condition for these effects to occur is that residence and location decisions are... more

Tax competition is supposed to lead to inefficiencies in the provision of public goods and difficulties for decentralized redistribution. A necessary condition for these effects to occur is that residence and location decisions are determined by fiscal considerations. In this paper, the impact ...

This paper presents estimates of static and dynamic general equilibrium resource alloca-tion effects for four alternative plans for corporate and personal income tax integra-tion in the United States. A medium-scale numerical general... more

This paper presents estimates of static and dynamic general equilibrium resource alloca-tion effects for four alternative plans for corporate and personal income tax integra-tion in the United States. A medium-scale numerical general equilibrium model is used which integrates the ...

This paper examines the taxation of capital income in a small open economy that faces a highly elastic supply of internationally mobile capital and increasing tax competition. The analysis considers a wide variety of additional factors... more

This paper examines the taxation of capital income in a small open economy that faces a highly elastic supply of internationally mobile capital and increasing tax competition. The analysis considers a wide variety of additional factors that affect the determination of capital income taxation policy, including the desire to tax economic rents earned by foreign and domestic firms, the desire

The paper presents a brief analysis of theoretical and practical aspects of state regulation of the personal income taxation to stimulate the formation of STEM staff. The research was conducted in the context of the development of the... more

The paper presents a brief analysis of theoretical and practical aspects of state regulation of the personal income taxation to stimulate the formation of STEM staff. The research was conducted in the context of the development of the Smart Industry in Ukraine.It is defined, that the main driver of the Smart Industry is STEM staff, armed with digital skills. The rapid development of technologies requires constant skills renewal. This leads to the need for the lifelong learning concept implementation. A personal income tax could stimulate staff to invest in their education.We investigate the world theoretical concepts of income taxation. It was concluded, that it is a combination of the tax base, rates and reliefs that can serve as a tool to stimulate investment in education.The experience of foreign countries with different tax systems, corresponding to theoretical concepts of income taxation, was analyzed. The results of the analysis showed that the most effective instrument of personal income tax in foreign countries is tax reliefs on education. In addition, in advanced countries government programs and the public-private partnerships have a significant impact on stimulating the development of STEM staff.The Ukrainian tax system and its possibilities to stimulate the formation of STEM staff were investigated. The analysis revealed that there are few tax reliefs on education, government programs are not developed and the system of public-private partnership is imperfect. The formation of STEM staff is at the initial legislative stage, and so far measures taken concerned its introduction at the level of general secondary education.On the basis of theoretical principles and analysis of foreign experience we proposed recommendations on the state regulation of the formation and development of STEM staff in Ukraine. They are based on the reform of the personal income taxation under the current income tax and the introduction of a tax on the withdrawn capital, cancelling the taxation of individuals’ dividends. The main incentive measures for STEM education are supposed to be privileges and preferences on personal income tax in case of education expenses with the additional implementation of government programs and the establishment of partnerships between government and business.

Labor force participation rates of mothers in Austria and Germany are similar, however full-time employment rates are much higher among Austrian mothers. In order to find out to what extent these differences can be attributed to... more

Labor force participation rates of mothers in Austria and Germany are similar, however full-time employment rates are much higher among Austrian mothers. In order to find out to what extent these differences can be attributed to differences in the tax transfersystem, we perform a comparative micro simulation exercise. After estimating structural labor supply models of both countries, we interchange two

In reforming South Africa's personal income tax system, the Katz Commission relied heavily on equality and the constitution. It did not, however, explain its understanding of the meaning of equality in general or equality of taxation... more

In reforming South Africa's personal income tax system, the Katz Commission relied heavily on equality and the constitution. It did not, however, explain its understanding of the meaning of equality in general or equality of taxation in particular, being content merely to mechanically remove what it perceived to be discriminatory words in the legislation. The meaning of equality of taxation on the other hand, was thoroughly debated by the classical economists. This article explains the classical economists' meaning of equality of taxation and demonstrates that the classical system of equality and that achieved by implementing the Katz Commission's recommendations are vastly different. In particular lower income groups, single income households and families are considerably worse off. Copyright (c) 2006 The Author. Journal compilation (c) 2006 Economic Society of South Africa.

We exploit a dataset that includes the individual tax returns of all taxpayers in the top percentile of the income distribution in Germany to pin down the effective income taxation of households with very high incomes. Taking tax base... more

We exploit a dataset that includes the individual tax returns of all taxpayers in the top percentile of the income distribution in Germany to pin down the effective income taxation of households with very high incomes. Taking tax base erosion into account, we find that the top percentile of the income distribution pays an effective average tax rate of 30.5% and contributes more than a quarter of total income tax revenue. Within the top percentile, the effective average tax rate is first increasing, then decreasing, with income. Since the 1990s, effective average tax rates for the German super-rich have fallen by about a third, with major reductions occurring in the wake of the personal income tax reform of 2001-05. As a result, the concentration of net incomes at the very top of the distribution has strongly increased in Germany.

The paper studies how high-income taxpayers responded to the introduction of the “extraordinary tax on individuals” in Hungary in 2007. The study is based on a panel of tax returns containing information on 10 % of tax filers from 2005... more

The paper studies how high-income taxpayers responded to the introduction of the “extraordinary tax on individuals” in Hungary in 2007. The study is based on a panel of tax returns containing information on 10 % of tax filers from 2005 and three subsequent years. We estimate the elasticity of taxable income with respect to the marginal net-of-tax rate and find that the taxable income of Hungarian high earners is moderately responsive to taxation: the estimated elasticity is about 0.24. We also find evidence for a sizeable income effect. The estimated effect is not caused by income shifting.

ABSTRACT The progressivity and equity of both state and federal individual income taxes, as well as the combined system of both taxes, are examined before and after the federal Tax Reform Act of 1986 using a variety of measures applied to... more

ABSTRACT The progressivity and equity of both state and federal individual income taxes, as well as the combined system of both taxes, are examined before and after the federal Tax Reform Act of 1986 using a variety of measures applied to federal Statistics of Income individual income tax data; state taxes are calculated using TAXSIM. Our findings are as follows: First, in both 1985 and 1987, state personal income taxes were generally less progressive and more horizontally equitable than the federal system. Second, in moving from 1985 to 1987, state personal income tax systems generally displayed decreased progressivity and horizontal inequity. The combination of the two systems displayed generally lower progressivity and horizontal equity scores when we compare 1987 to 1985. Last, the after-tax income distribution became more unequal when we compared 1987 to 1985.

Personal income taxation remains relatively low in many developing countries despite recent democratic advancement and rapid economic growth; this is hard to reconcile with standard political economy models of taxation. This paper argues... more

Personal income taxation remains relatively low in many developing countries despite recent democratic advancement and rapid economic growth; this is hard to reconcile with standard political economy models of taxation. This paper argues that the details of political institutions help to explain these low levels of personal income taxation. In particular, legislative malapportionment enables rich elites to have disproportionate political

The role of indirect taxes in social policy is investigated by 1) comparing the distributional pattern of indirect taxes with the one of personal income taxes and social security contributions; 2) calculating the indirect tax liabilities... more

The role of indirect taxes in social policy is investigated by 1) comparing the distributional pattern of indirect taxes with the one of personal income taxes and social security contributions; 2) calculating the indirect tax liabilities for recipients of social benefits; 3) assessing the distributional impact of shifting the financing of social security from contributions to indirect taxes. For this

In this paper we investigate the progressivity impact of various components of the Belgian personal income tax system, before and after a major reform of this system. The reform reduced the top tax rates, broadened the tax base and... more

In this paper we investigate the progressivity impact of various components of the Belgian personal income tax system, before and after a major reform of this system. The reform reduced the top tax rates, broadened the tax base and increased tax credits. We show that, contrary to the opinion, commonly expressed in public debates, the reform did not reduce aggregate