Progressivity and redistributive effects of income taxes: evidence from India.
Concentration index
India
Inequality
Tax progressivity
Journal
Empirical economics
ISSN: 0377-7332
Titre abrégé: Empir Econ
Pays: Austria
ID NLM: 101086175
Informations de publication
Date de publication:
2022
2022
Historique:
received:
12
10
2020
accepted:
20
09
2021
pubmed:
2
11
2021
medline:
2
11
2021
entrez:
1
11
2021
Statut:
ppublish
Résumé
We analyse the progressivity and redistributive effects of India's income tax system utilizing Income Tax Department data for 2011-18. By fitting Lorenz and tax concentration curves to these data, we find that despite exhibiting high levels of progressivity, the redistributive effects of income taxes remain modest amongst tax assessees and miniscule within the adult population. We also find that plugging the gap between statutory and actual average tax rates will do little to improve redistributive effects, and lowering income thresholds for top marginal tax rates offers greater redistributive and revenue potential than reducing exemption limits or increasing top marginal tax rates.
Identifiants
pubmed: 34720365
doi: 10.1007/s00181-021-02144-x
pii: 2144
pmc: PMC8536922
doi:
Types de publication
Journal Article
Langues
eng
Pagination
141-178Informations de copyright
© The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2021.
Déclaration de conflit d'intérêts
Conflict of interestOn behalf of all authors, the corresponding author (Ranjan Ray) states that there is no conflict of interest.