American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Income Inequality and Progressive Income Taxation in China and India, 1986-2015
American Economic Journal: Applied Economics
vol. 1,
no. 2, April 2009
(pp. 53–63)
Abstract
This paper evaluates income tax reforms in China and India. The combination of fast income growth and under-indexed tax schedule in China implies the fraction of the Chinese population subject to income tax has increased from less than 0.1 percent in 1986 to about 20 percent in 2008, while it has stagnated around 2-3 percent in India. Chinese income tax revenues, as a share of GDP, increased from less than 0.1 percent in 1986 to about 1.5 percent in 2005 and 2.5 percent in 2008, while the constant adaptation of exemption levels and income brackets in India have caused them to stagnate around 0.5 percent of GDP. (JEL D31, H24, 015, 023, P23, P35)Citation
Piketty, Thomas, and Nancy Qian. 2009. "Income Inequality and Progressive Income Taxation in China and India, 1986-2015." American Economic Journal: Applied Economics, 1 (2): 53–63. DOI: 10.1257/app.1.2.53Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O23 Fiscal and Monetary Policy in Development
- P23 Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
- P35 Socialist Institutions and Their Transitions: Public Economics
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