Bergolo, M, Burdin, G orcid.org/0000-0003-3525-5583, De Rosa, M et al. (2 more authors) (2021) Digging into the Channels of Bunching: Evidence from the Uruguayan Income Tax. The Economic Journal, 131 (639). pp. 2726-2762. ISSN 0013-0133
Abstract
Based on detailed administrative tax records, we implement a bunching design to explore how individual taxpayers respond to personal income taxation in Uruguay. We estimate a very modest elasticity of taxable income at the first kink point (0.06) driven by a combination of gross labour income and deduction responses. Taxpayers use personal deductions more intensively close to the kink point and underreport income to the tax authority. Our results suggest that the efficiency costs of taxation are not necessarily large in contexts characterised by limited deduction opportunities. Policy efforts should be directed at broadening the tax base and improving enforcement capacity.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © The Author(s) 2021.Published by Oxford University Press on behalf of Royal Economic Society. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Jan 2021 12:42 |
Last Modified: | 06 Dec 2021 14:53 |
Status: | Published |
Publisher: | Oxford University Press |
Identification Number: | 10.1093/ej/ueab002 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:169741 |