Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries

Klara Sabirianova Peter (kpeter@unc.edu), Steve Buttrick and Denvil Duncan
Additional contact information
Steve Buttrick: Georgia State University

No 4228, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we use a panel of 189 countries to describe the salient trends that have emerged in national personal income tax systems spanning the twenty five year period from 1981 to 2005. Using complete national income tax schedules, we calculate actual average and marginal tax rates at different income levels as well as time-varying measures of structural progressivity and complexity of national tax systems. We show that frequent alterations of tax structures have reduced tax rates at higher levels of income and diminished the overall progressivity and complexity of national tax systems; however, the degree of this change varies considerably across countries. We also find that the relationship between the tax rates and revenue is positive for high income countries; however, the strength of the relationship declines with weaker institutions and lower levels of economic development.

Keywords: personal income tax; marginal rate; average rate; tax complexity; progressivity; flat tax; revenue; global trends (search for similar items in EconPapers)
JEL-codes: C8 E62 H2 H87 N10 O1 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2009-06
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published - published in: National Tax Journal, 2010, 63 (3), 447-478

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Related works:
Journal Article: Global Reform of Personal Income Taxation, 1981–2005: Evidence From 189 Countries (2010)
Working Paper: Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries (2007)
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