Analysing Progressivity of Personal Income Taxes: A Case Study of India
This paper suggests two models for isolating empirically the effects of the income inequality and the tax parameters from their combined effect on the progressivity of real world personal income taxes. The inequality in the distribution of income and the graduation in the tax rates are found to significantly influence the progressivity of the tax. It is depicted that in an economy with a low or high level of income inequality, income redistributive policies would lead to greater changes in the progressivity of the tax as compared to that in an economy with moderate level of income inequality. Further, in an economy with a high level of graduation in the tax rates, an increase in the graduation is unlikely to significantly enhance the effective progressivity of the tax. The developing countries cannot rely much on the steep graduation in tax rate for their economic reforms. Analysis of the Indian data for the period 1961-62 through 1983-84 shows that if the effective progressivity is to be improved then the tax reforms should be aimed at raising statutory tax progressivity through larger reductions in the marginal tax rates at lower income levels besides better enforcement of the tax laws.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 27 (1992)
Issue (Month): 2 (July)
|Contact details of provider:|| Postal: |
Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
Web page: http://www.ierdse.org/
More information through EDIRC
|Order Information:|| Web: http://www.ierdse.org/ Email: |
When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:27:y:1992:i:2:p:155-181. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pami Dua)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.