Income Taxation Across Countries
by Xincheng Qiu, (Guanghua School of Management, Peking University) and Nicolò Russo, (Goethe University Frankfurt)
How does income taxation really work across countries, once statutory rates, deductions, and credits are all accounted for? This article compares effective income taxation cross-nationally, using the two-parameter log-linear tax function popularized by Heathcote, Storesletten, and Violante. The authors estimate comparable effective tax functions for a broad set of countries and periods, showing how average taxation and progressivity shift with economic development and family structure.
Full article is available here.