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Taxes related to real estates in Korea are too complicated, and the progressivity is needed to be lessened.
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More research is needed to evaluate the real risk of progressivity of these lesions.
Whereas excise tax is the most progressive of the indirect taxes, its progressivity is mainly due to the progressivity of fuel, alcohol and expenditure on phone airtime.
Tax progressivity is motivated by a belief that the urgency of spending needs declines as the level of spending increases (economists call this the declining marginal utility of consumption), so that wealthy people can afford to pay a higher fraction of their resources in taxes.
Progressivity is key to promoting savings.
Measurement of the degree of tax progressivity is conceptually problematic.
But economists cautioned that measuring progressivity is tricky.
Tax progressivity is often at odds with efficiency.
At the extreme end of progressivity is communism, in which salaries are nearly equalized.
First, the optimal degree of progressivity is always positive.
The (negative) growth effect of income tax progressivity is reinforced, as a higher tax progressivity is shown to lead to substantial reductions in individuals' labor supply which further reduce young individuals' savings.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com