Progressivity and distributive impacts of personal income tax: the case of China and Brazil

Pedro Rossi (), Ricardo Gonçalves () and Ping Shang ()

Brazilian Journal of Political Economy, 2022, vol. 42, issue 4, 998-1013

Abstract: This paper aims to evaluate and compare the distributive impact of the personalincome tax (PIT) on individual’s income in Brazil and China by measuring the Gini Indexbefore and after this tax incidence. The paper also proposes a methodology for transposingthe PIT backets from one country to another. The results show that a more progressivescheme implemented by China, with more brackets and higher rates, does not guaranteereduction of inequality, due to the level of income exemption and to the incomes on whichthe marginal rates affect. Thus, it can be perceived that the PIT brackets of these twocountries deserves revisions if they seek to fulfill the distributive function. JEL Classification: E62; H24; N45; N46.

Keywords: Gini index; income distribution; personal income tax; tax progressivity (search for similar items in EconPapers)
Date: 2022
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