Are Elasticities of Taxable Income Rising?
IMF Working Papers, June 13, 2018
Source details
- Canonical URL
- Are Elasticities of Taxable Income Rising?
Other formats
Bibliographic details
- Authors: Alexander D Klemm, Li Liu, Victor Mylonas, Philippe Wingender
- Published: June 13, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484361566.001
Research question and scope
- Assesses whether globalization and related tax evasion and avoidance opportunities could have raised elasticities of taxable income (ETI) for top personal income earners, potentially explaining the global downward trend in top personal income tax rates.
- Estimates ETI for top income earners using a large sample of economies and years with a common method to analyze trends in ETI.
- Paper type: IMF Working Papers, Working Paper No. 2018/132, Pages: 22, Volume: 2018, Issue: 132.
Key findings
- Elasticities of taxable income do not appear to exhibit any clear pattern over the years.
- The downward trend in top personal income tax rates must have other possible explanations, which are briefly discussed.
Methodology and data notes
- Uses a common estimation method applied to a large sample of economies and years to produce cross-economy ETI estimates.
- Focus on top income earners.
Subjects and keywords (as listed)
- Subjects: Corporate income tax, Income tax systems, Marginal effective tax rate, National accounts, Personal income, Personal income tax, Tax policy, Taxes.
- Keywords: Corporate income tax, cross-economy estimate, Elasticity of taxable income, estimate ETI, ETI estimate, income share, Income tax systems, income tax tax rate, Marginal effective tax rate, net-of-tax rate, OECD tax database, Optimal tax, Personal income, Personal income tax, Progressive Taxation, tax competition, tax policy rates database, Tax Progressivity, tax purpose, tax rate, tax rate change, tax schedule, WP.
Content in this bundle
- Are Elasticities of Taxable Income Rising?, WP/18/132, June 2018