Measurement of redistributive effect of tax rates from a longitudinal perspective: an application of the fixed taxable income approach |
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Authors: | Takeshi Miyazaki |
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Institution: | Department of Economics, Kyushu University, Fukuoka, Japan |
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Abstract: | The primary objective of this article is to explore how the redistributive effects of tax rate change when using the fixed taxable income approach – where tax rates for each year in a period are applied to taxable income for a base year to calculate rate effects – instead of using an existing procedure to compute the rate effects. Standard rate effects are found to differ considerably from those calculated using the fixed taxable income approach in terms of both level and longitudinal trend. |
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Keywords: | Fixed income approach personal income tax rate effect redistributive effect |
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