Effects Of Personal Income Tax Research Articles

The effect on household income of government taxation and expenditure in 1988, 1998, 2007 and 2010

Governments change the resources available to households through both spending and taxation. This article examines the extent to which the government redistributes from high-to low-income households, and how this has changed since 1988. As well as covering market outcomes and the effects of personal income tax and cash benefits on the disposable incomes of households, the distribution of indirect taxes and of government expenditure on in-kind social services is calculated. The results reveal how government affects the distribution of post-tax income received by households, when income is defined considerably more broadly than usual. This article extends Treasury’s previous fiscal incidence study of 1988 and 1998 using 2007 and 2010 data.1

The potential effects of personal income tax in USA in 2007

Article presents the effects of the potential introduction of the flat tax for the United States economy in 2007. The USA is labelled as the most capitalist economy worldwide. This is confirmed through a lot of economic indicators and ideological bases which rule in the USA. Nevertheless, all over the history progressive income taxes have functioned in American economy against the views of extreme capitalist theorists. Even that hasn’t protected America from huge income inequality. Lots of inequality indicators for the USA are the worst among other developed countries. As statistic data reveal, the introduction of the flat taxation in personal taxes would result in the increase of the population income inequality. The aim of this paper is to present direct and static effects of the introduction of the flax tax on personal taxes in the Unites States in 2007. The main emphasis is on income and inequality effects of that change. The analysis is carried out with descriptive and statistical methods.

Distribution of Income and Taxes in Slovenia and Croatia

The purpose of this article is to estimate the redistributive effects of personal income tax (PIT) in Slovenia and Croatia. The decomposition of the Gini coefficient developed by Aronson, Johnson & Lambert reveals only a limited difference between potential and actual redistribution, with this loss being a consequence of the different tax treatment of taxpayers with equal pre-tax income. The results also suggest that Croatia experiences greater income inequality among taxpayers than Slovenia. Another decomposition of inequality measure indicates that some types of income — especially wages — contribute a constant and high proportion to the overall inequality seen in both countries during the period examined.

The Redistributional Effects of Personal Income Tax in Australia : A Comment

The Redistributional Effects of Personal Income Tax in Australia : A Comment

The Redistributional Effect of Personal Income Tax in Australia

The purpose of this paper is to show that the progressive income tax in Australia has achieved some equity in terms of income redistribution by personal income taxation. There are many redistributional aspects associated with the actions and policies of governments. For example, public education is primarily a redistribution of income from the wealthy to the poor, from small families to large ones and from older to younger generations. Debate also centres on whether the redistribution should be in terms of public goods, cash benefits or progressive income taxes. This study aims to refute the argument that has been expressed that the progressive income tax system has failed to achieve any equity through redistribution of income. Data examined in this study show that annual levelling of incomes has occurred through taxation especially in the last decade. It is not the purpose of this paper to argue whether the primary (or pre-tax) income redistribution is more equitable in 1979-80 than in 1950-51. Rather comment is made on what can be established in terms of the incidence or redistributive impact of income tax, i.e. whether the secondary (or post-tax) income is more equitable than the primary in each year considered.