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"You can have a flat-tax system that retains elements of progressivity, but I can't say whether it would retain the same level of progressivity and same level of revenue," one aide said.
Finally, in a counterfactual scenario in which there is no informal labor, the system becomes almost neutral, even showing a small level of progressivity.
Finally, assuming the removal of the informal labor market, the system becomes almost neutral, even showing a small level of progressivity.
The social discount factor proves to be crucial for this third effect: a higher valuation of future generations' well-being requires a lower level of progressivity.
Additionally, if tax revenues are used to provide a public good rather than just being discarded, a higher private valuation of such public goods will also call for a lower level of progressivity.
The size of the second, negative, effect critically depends on the social discount factor: if the social planner discounts less future generations' well-being, the optimal level of progressivity will be lower.
Similar(53)
It is found that higher levels of progressivity lead to lower equilibrium growth rates.
But the influential global institution said: "Empirical results do not support this argument, at least for levels of progressivity that are not excessive". The IMF added that different types of wealth taxes might also be considered.
Third, young individuals' aggregate savings relative to aggregate output fall as a result of increasing levels of progressivity as pointed out above: except for the least skilled individuals, higher values of (phi ) end up inducing lower first-year savings, in particular for the most skilled workers (see Table 4, column 4).
However, these payment mechanisms have varying levels of progressivity.
Furthermore, not only can the Kakwani index quantify the degree of financing equity in one certain area in a specific period, but it also enables a comparison of the levels of progressivity at different times and areas without consideration of their different social-economic context for the reason that economic status and health financing factors are included in the model [ 38].
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com