The effective income tax function is a useful and practical method to analyse the relationship between income and tax amounts. It includes measures of tax progressivity, the maximum effective tax rate, and the horizontal inequity. The effective income tax function was estimated statistically using the seven countries of LIS datasets and Korean data. The estimated maximum effective tax rate is less than or very close to its maximum statutory marginal tax rate, except for Norway and Korea. This implies that estimation of the effective tax function is of great use and significance in evaluating the charateristics of income tax law. The mean squared error from the effective income tax function can be used to represent the degree of horizontal inequity as a 'quick’ measure.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 13 (2006) Issue (Month): 2 (February) Pages: 117-121 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: