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The Taxation of High Income Earners
Author:
Mr. Parthasarathi Shome
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Series:
IMF Policy Discussion Papers
Volume/Issue:
Volume 1993: Issue 019
Language:
English
Publication Date:
01 Dec 1993
DOI:
https://doi.org/10.5089/9781451964578.003
ISBN:
9781451964578
ISSN:
1564-5193
Pages:
26
Keywords:
PDP; tax rate; rate; rate structure; earner; well functioning tax administration; rate structures; incentive effect; tax authorities; gross income; structures of the personal income tax; vigilant tax administration; rate structures of the personal income tax; tax literature; Income and capital gains taxes; Income tax systems; Personal income tax; Personal income; Tax equity; Middle East
Legal-disclaimer:
This Policy Discussion Paper should not be reported as representing the views of the IMF. The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Policy Discussion Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
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The 1980s trends were to lower marginal personal income tax rates, scale down rate structures, and apply the highest rate at lower levels of per capita GDP. In the 1990s, driven by fiscal deficits and unemployment, and difficulty in linking high marginal rates to low incentives or revenue productivity, tax authorities are again demonstrating an interest in increasing marginal rates. This will burden those that are correctly paying the tax. Instead, equity and revenue productivity should be improved through minimum taxes, presumptive taxes, adequate inclusion of capital income in the tax base, revitalization of property taxes, and selected luxury taxes.
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Cover IMF Policy Discussion Papers
IMF Policy Discussion Papers
ISSN:
1564-5193
Publisher:
International Monetary Fund