This report aims to analyze the effects of inflation indexation on income and consumption taxes with specific components embedded in excise rate structure in Korea.
Simulation results show that inflation indexed income tax system yields a constant real income tax burden, unless the real income or the relative income distribution changes. This is because inflation indexation neutralizes nominal effects. To the contrary, the effective income tax burden under the actual tax laws has changed irregularly mainly due to the fact that recent arbitrary/discretionary income tax reforms have not successfully reflected the inflationary effects to the extent of changes in nominal values. In addition, the share of income tax payers whose income tax burdens are positive dwindles during the couple of decades. This means that income deduction level have increased more sharply than the nominal income increases. (The rest omitted)
- 물가연동세제의 도입 연구(Introduction of inflation indexation into Korean tax system)
- 성명재; 박상원
물가연동세제의 도입 연구(Introduction of inflation indexation into Korean tax system)
서울 : 한국조세연구원
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|