The Russian Flat Tax Reform
IMF Working Papers, January 1, 2005
Source details
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Bibliographic details
- Authors: Michael Keen, Alexander D Klemm, Anna Ivanova
- Published: January 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860351.001
Overview
- Title: The Russian Flat Tax Reform
- Authors: Michael Keen, Alexander D Klemm, Anna Ivanova
- Publication date: January 1, 2005
- Series: Working Paper No. 2005/016
- Issue: 016
- Volume: 2005
- Pages: 47
- DOI: https://doi.org/10.5089/9781451860351.001
Reform description
- Russia reduced its higher rates of personal income tax (PIT) in 2001, establishing a single marginal rate at the low level of 13 percent.
- In the following year, real revenue from the PIT increased by about 26 percent.
Research question and approach
- Research question: Whether the strong revenue performance of the PIT was itself a consequence of the 2001 reform.
- Evidence used: Both macro evidence and micro-level data on the experiences of individuals and households affected by the reform to varying degrees.
Key findings
- There is no evidence of a strong supply side effect of the reform.
- Compliance improved quite substantially—by about one third according to the authors' estimates.
- It remains unclear whether the compliance improvement was due to the parametric reforms (the change to a single rate) or to accompanying changes in enforcement.
Subject areas and keywords
- Subject: Labor, Personal income, Personal income tax, Tax allowances, Wages
- Keywords: gross income, tax rate, wage rate, WP
Publication identifiers
- Stock No: WPIEA2005016
- ISBN: 9781451860351
- ISSN: 1018-5941
IMF Working Paper: "The Russian Flat Tax Reform" by Michael Keen, Alexander D Klemm, and Anna Ivanova (January 1, 2005).