Impact of Taxes and Benefits on Inequality among Groups of Income Units

Urban, Ivica

doi:10.1111/roiw.12158

Cited by 5 publications

(3 citation statements)

References 24 publications

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“…Early work using 2007 data highlighted the relatively high pre-fiscal income inequality in Croatia and despite the relatively large redistributive effect of the policies, these were still less redistributive compared to Slovenia (Čok et al, 2012). In particular, earlier work using data for 2010 emphasized the fact that horizontal inequities arising from the benefit system dampened to some extent the redistributive role of fiscal policy (Urban 2014 and2016). More recent work has been done in the context of a broader effort to build microsimulation models in the EU through EUROMOD (Urban and Bezeredi, 2016).…”

Section: Introductionmentioning

confidence: 99%

The Distributional Impact of Taxes and Social Spending in Croatia

Comboni¹,

Rubil²

2017

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Introductionmentioning

confidence: 99%

The Distributional Impact of Taxes and Social Spending in Croatia

Comboni¹,

Rubil²

2017

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“…Recent research on income inequality has emphasized, inter alia , the nexus surrounding the quality of democracy alongside its persistence and income inequality with the moderating effect of foreign direct investment (Wong, 2015); the redistributive effect of fiscal policy through a tax on income inequality and opportunities disparity (Alves & Afonso, 2019; Cano, 2018; Ilzetzki, 2018; Iosifidi & Mylonidis, 2017; Odusola, 2017; Pástor & Veronesi, 2016; Urban, 2016); the extent of democracy and income disparity with the redistribution channel by which political freedom influences the inequality (Acemoglu et al, 2015; Islam, 2016); the importance of tax optimization for industrial pollution control on income inequality (Bontems & Gozlan, 2018); the nexus between income inequality reduction through tax policy and economic growth (Biswas et al, 2017); and how the democratic structure could facilitate the relationship between the natural resources and income inequality (Hartwell et al, 2019). In their study on post‐communist economies, Gerry and Mickiewicz (2008) investigated what factors contribute to income inequality.…”

Section: Theoretical Highlights and Literature Reviewmentioning

confidence: 99%

Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

Adegboye,

Uwuigbe

et al. 2023

Politics & Policy

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Given that the linear linkage between taxation and income inequality remains unclear, especially in Sub‐Saharan African countries, it is critical to explore how the redistribution channel of the tax system could mitigate income inequality within democratic institutions. Using the instrumental variable approach for robust analysis, this study explores the panel dataset of 42 Sub‐Saharan African countries from 1996–2014. The following findings are documented. First, both unconditional linkages between taxation and democracy overwhelmingly reduce income inequality. Second, harnessing democracy with taxation has a net effect that reduces income inequality. Overall, this study establishes that a strong democratic system strengthens the tax system for an income redistribution strategy to enhance income equality. This study is relevant for the achievement of Sustainable Development Goal (SGD) 1 on poverty reduction, SDG 10 on inequality, and SDG 16 on strong institutions.Related ArticlesGatchair, Sonia D. 2015. “Ideology and Interests in Tax Administration Reform in Jamaica.” Politics & Policy 43(6): 887–913. https://doi.org/10.1111/polp.12139.Nchofoung, Tii, Simplice Asongu, Vanessa Tchamyou, and Ofeh Edoh. 2022. “Gender, Political Inclusion, and Democracy in Africa: Some Empirical Evidence.” Politics & Policy 51(1): 137–55. https://doi.org/10.1111/polp.12505.Wang, Yingyao. 2017. “Why Tax Policy Is Not Politics in China: Public Finance and China's Changing State‐Society Relations.” Politics & Policy 45(2): 194–223. https://doi.org/10.1111/polp.12200.

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“…Firstly, as a result of the minimal level of resources or income raised from their economic activities, they are unable to adequately pay up their debts (Lin & Jia, 2019;Martorano, 2016). Secondly, income raised is subject to the fact that tax liability is not equally distributed, the majority of the tax liability is incurred by the disadvantaged group usually based on the actions of the advantaged group (Ivica, 2016;Kennedy et al, 2017;Stantcheva, 2020). Also, the problem of Accountability in policies that make the tax payers feel a sense of unfairness (Gbato, 2017).…”

Section: Introductionmentioning

confidence: 99%

Financial Inclusion and Information Communication Technology on Tax Performance in Sub-Saharan Africa

Adeyemo,

Adeyanju,

Ekundayo

et al. 2023

J. Professional Business Review

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Purpose: The main objective of this paper is to determine empirically the impact of financial inclusion and Information Communication Technology (ICT) on tax performance in Sub-Saharan African countries; determine the extent to which the elements of financial inclusion have influenced tax performance of countries in Sub-Saharan Africa; and examine the role technology plays in impacting the performance of taxes in Sub-Saharan African countries. Theoretical Framework: The existing theories that serve as a roadmap for the development of this study are Theory of Digital Diffusion and Theory of Margins. Digital transformation has an important impact on the operations and systems of every economy, which often triggers a positive effect on taxes. Diffusion innovation theory was initiated by Rogers in 1962. The Theory of Margin on the other hand, is a theoretical school that gives validity to the impact of financial development on product output. It suggests that more access to financial services and products is vital for high output and economic advancement. Design/Methodology/Approach: The population considered in this study was 48 sub-Saharan African Countries from the period of 1999 to 2019. The methods used for the analysis consists of the descriptive and correlation analysis on the identified variables and a creation of financial inclusion index using the Principal Component Analysis to deal with multiclonality challenge amongst the financial inclusion proxies, it also adopted the two-staged least square estimation technique for the empirical analysis. Findings: The study reveals inter alia that the variables for financial inclusion and ICT proxies are overwhelmingly positive and significantly impact on the tax performance (i.e., total tax revenue and the non-resource tax revenue as percentages of GDP), in sub-Saharan Africa and that the financial inclusion index has positive effect on tax performance in sub-Saharan Africa. We also observed that there is a positive relationship between technology and tax performance in sub-Saharan Africa. Research Practical & Social implications: Policies should be formulated to engender enhancement of technology and more investment should be allocated to technology as it is discovered to drive financial inclusion and promotes tax revenue mobilization. In general, the findings indicate that policies are needed to engender an enhancement of technology and more investment should be channeled to technology as it affects financial inclusion and by logical extension, the promotion of tax revenue mobilization. Originality/value: The challenge of tax implementation can be directly ascribed to an ineffective tax system. A tax management that is of high in superiority, helps to make the tax mobilization process more transparent and efficient, and also reduce the level of shadow economy, which main feature is non- remittance or payment of tax. This study reveals that a tax administration system can only operate effectively with the use of modern information technologies.

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Impact of Taxes and Benefits on Inequality among Groups of Income Units

Cited by 5 publications

References 24 publications

The Distributional Impact of Taxes and Social Spending in Croatia

The Distributional Impact of Taxes and Social Spending in Croatia

Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

Financial Inclusion and Information Communication Technology on Tax Performance in Sub-Saharan Africa

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