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Global Reform of Personal Income Taxation, 1981–2005: Evidence From 189 Countries

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  • Peter, Klara Sabirianova
  • Buttrick, Steve
  • Duncan, Denvil

Abstract

We use a panel of 189 countries to describe trends in national personal income tax systems between the years 1981 and 2005. Using complete national income tax schedules, we show that tax rates at higher income levels, structural progressivity and the complexity of national tax systems have declined significantly; however, the degree of these changes varies considerably across countries. We also find that the relationship between tax rates and revenue is positive for high income countries but declines with weaker institutions and lower levels of economic development.

Suggested Citation

  • Peter, Klara Sabirianova & Buttrick, Steve & Duncan, Denvil, 2010. "Global Reform of Personal Income Taxation, 1981–2005: Evidence From 189 Countries," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(3), pages 447-478, September.
  • Handle: RePEc:ntj:journl:v:63:y:2010:i:3:p:447-78
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    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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