Analyzing the effectiveness of progressive taxation on income distribution in Iran (March 2003 to February 2024)
Translator
Translator
Translator
Subject Areas : Bi-quarterly Journal of development economics and planning
Translator
Translator
Translator
seyed abdollah mousavi
1
,
yahya neisi
2
*
1 - Deanship of Technical and Vocational College for Boys No. 2, Ahvaz
2 -
Keywords: Cointegration. Error correction model, Income distribution, Income tax and Progressive structure of tax.,
Abstract :
An efficient tax system in the form of a progressive tax can lead to improved income distribution. Many countries in the world still have progressive income tax systems, which shows that income redistribution through the tax system is a policy goal; The aim of this article is to examine the short-term and long-term effectiveness of progressive tax on income distribution in Iran. In this study, effectiveness of progressive tax on income distribution in Iran in the monthly period from 1382 to 1402 has been examined. Therefore, in order to show the effect of the progressive tax structure on income distribution, a model consisting of the Gini coefficient, the progressive tax system criterion, natural resource rent, the logarithm of GDP per capita, the inflation rate, and the interaction between institutional variables and progressive tax was examined and analyzed using the cointegration method and the error correction model of long-term and short-term relationships. The results of the study show that the income tax structure in Iran is progressive, but it has not been able to improve income distribution. In addition, in the long-term estimate, the negative effect of the interaction between institutional variables and progressive tax, as well as the positive effect of the related criterion of the progressive tax system, GDP per capita, natural resource rent and inflation rate were observed. In addition, in each period, 0.45 of the imbalance of the dependent variable is adjusted and moves towards the long-term relationship.
Graphical Abstract:
Translator
Translator
Translator
Highlights:
Translator
Translator
Translator
References:
- ابونوری، اسمعیل و محبوبه فراهنی (۱۳۹۴)، ساختار تولید و توزیع درآمد در ایران، فصلنامه مدلسازی اقتصادی، سال نهم، شماره ۴.
- ابونوری، اسمعیل (۱۳۸۵)، اثر شاخص های کلان اقتصادی بر توزیع درآمد در ایران: مطالعه بین استانی، مجله تحقیقات اقتصادی، شماره 77.
- ابونوری، عباسعلی و سمیه زیوری (۱۳۹۳)، تاثیر در آمدهای مالیاتی بر رشد اقتصادی و توزیع درآمد پژوهشنامه مالیات، شماره ۲۴.
- پروین، سهیلا (۱۳۹۴)، رشد اقتصادی و طبقه متوسط، فصلنامه پژوهشنامه اقتصادی، سال پانزدهم شماره ۴۲.
- پروین، سهیلا (۱۳۹۵)، آثار هدفمندی یارانه ها بر سبد مصرفی خانوارها، مرکز پژوهش های مجلس.
- پژویان، جمشید (۱۳۹۴)، اقتصاد بخش عمومی مالیات ها، تهران: انتشارات جنگل، چاپ یازدهم.
- حاج یوسفی، امیرمحمد (1378)، دولت، نفت، و توسعه اقتصادی در ایران. تهران: مرکز اسناد انقلاب اسلامی.
- زاینده رودی، محسن (۱۳۸۰)، بررسی تاثیر مالیات درآمد، دستمزد روی عرضه نیروی کار، فصلنامه پژوهش های اقتصادی ایران، شماره ۴۳۷.
- دادگر، یدالله (۱۳۹۲)، اقتصاد بخش عمومی، تهران: انتشارات مفید، چاپ سوم.
- شریعت مصطفوی، سید محمود (۱۳۹۴)، بار مالیاتی بر خانوار در دهک های هزینه ای در ایران، پایان نامه کارشناسی ارشد، دانشگاه علامه طباطبایی.
- مرکز پژوهش های مجلس شورای اسلامی (۱۳۹۲)، دفتر مطالعات و برنامه و بودجه، مالیات ستانی از مجموع درآمد اشخاص.
- نصیری اقدم، علی و اشرف رزمی (۱۳۶۴)، وضع مالیات بر مجموع درآمد اشخاص و شبیه سازی آثار آن بر درآمدهای مالیاتی و توزیع درآمد، فصلنامه پژوهشنامه اقتصادی، سال پانزدهم، شماره 82.
- مهرآرا، محسن و پوریا اصفهانی (۱۳۹۴)، بررسی رابطه توزیع درآمد و ساختار مالیاتی کشورهای منتخب، پژوهشنامه مالیات، شماره ۲۲۸.
- مرکز آمار ایران (https://www.amar.org.ir).
- Arrelano, M. and S. Bond (1991). Some Tests of Specification in Panel Data: Monte Carlo Evidence and an Application to Employment Equations, Review Of Economics and Statistics, 58.
- Aron, J. (2000). Growth and Institutions: A Review of the Evidence, the World Bank Research Observer15 (1):99-135.
- Bahrami, J; Pahlavani, M. & Jansuz, P. (2013). Impact of Bank Credits on Economic Growth in Selected Developing Countries by Using GMM Method, Journal of Monetary Bank Research, 15: 77-96.
- Bali M. Asadollahzadeh (2008). The Impacts of Taxes on Inequality and Income Distribution in Iran, Journal of tax research, 16(1): 73-92.
- Baltagi, B. H. (2008). Econometric Analysis of Panel Data, Chichester: John Wiley and Sons Ltd.
- Bankman, Joseph and Thomas Griffith (1987). Social Welfare and the Rate Structure: A New Look At Progressive Taxation, California Law Review, 75, PP.
- Blundell, R. and S. Bond (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87, PP, 11-143.
- Bird, R. M. & Zolt, E. M. (2005). Redistribution via Taxation: The Limited Role of the Personal Income Tax in Developing Countries, 0508.
- Deaton, A. (1997). The Analysis of Household Surveys: A Micro econometric Approach to Development Policy, The John Hopkins University Press, Baltimore.
- Duncan, D. & Peter, K. S. (2008). Tax Progressivity and Income Inequality, Journal of the Andrew Young School of Policy Studies.
- Echevarría, C. (2014). Income Tax Progressivity, Growth, Income Inequality and Welfare, Journal of Spanish Economic Association, Series 6:43–72.
- Eliasson, Jonas. Pyddokec, Roger & Jan ErikSwärdh (2018). Distributional effects of taxes on car fuel, use, ownership and purchases, Economics of Transportation, Volume 15, Pages 1-15.
- Engstrom, Per. & Holmlund, B. (2009). Tax Evasion and Self-employment in a High-tax Country: Evidence from Sweden, Applied Economics.
- Falahi, M; Mahdavi A, M & Jandaghi M, F. (2014). Natural Resource Rents and Corruption in OPEC Countries: A Panel Data Approach, Iranian Energy Economics, 11: 195-227.
- Freire-seren, M, J. & Panades, J. (2008). Does Tax Evasion Modify the Redistributive Effect of Tax Progressivity? Social Science Research Network, 84, No267, PP: 486-495.
- Gale, W. G; Kearney, M. S. & Orszag, P. (2015). Would a Significant Increase in the Top Income Tax Rate Substantially Alter Income Inequality? Journal of Economic Studies at Boookings.
- Galvin, C. And B. I. Bittker (1969). The Income Tax: How Progressive Should Itbe? Rational Debate Seminars, Washington, Americanenterprise Institute for Public Policy Research.
- Gilak. H. A, M. (2001). Comparative Analysis of Distributive Effect of Income Tax in Islam and Income Tax System in Iran, Journal of Economic Research (Tahghighat-e-Eghtesadi), 57: 189-228.
- Gravelle, J. (1992). Equity Effects of the Tax Reform Act of Journal of Economic Perspectives, 6(1), PP, 27-44.
- Green, David, Riddell A.Craig and St-Hilaire France (2015). Income Inequality: The Canadian Story, Art of the State Series.
- Gorodnichenko, Y; Martinez-Vazquez, J. & Sabirianova Peter, K. (2008). Myth and Reality of Flat Tax Reform: Micro Estimates of Tax Evasion Response and Welfare Effects in Russia, NBER Working Paper Series, No. 13719.
- Harris, J, R. & Todaro, M, P. (1970). Migration, Unemployment, and Development: A Two-Sector Analysis, 60 AM, Econ, Rev, 126.
- Husted, T. A. & Kenny, L. W. (1997). The Effect of the Expansion of the Voting Franchise on the Size of Government, The Journal of Political Economy, 105, No. 1, PP: 54-89.
- Kaplow, L. and Shavell, S. (2002). Fairness Versus Welfare: Notes on the Pareto Principle, Preferences, and Distributive Justice, The Journal of Legal Studies, 32(1), Pages: 331-362.
- Khanzadi, A; Heidariyan, M. & Moradi, S. (2014). Investigating and Analyzing the Role and Effects of Tax Revenues on Income Distribution and Human Development, Journal of Quantitative Economics, 11: 135-158.
- Kumar, A. (2008). Labor Supply, Deadweight Loss and Tax Reform Act of 1986: A Nonparametric Evaluation Using Panel Data, Journal of Public Economics 92(1-2): 236-253.
- Lediga, Collen. Riedel, Nadine Kristina, Strohmaier (2018). The elasticity of corporate taxable income, Evidence from South Africa, Economics Letters, Volume 175, Pages 43-46.
- Lemieux, T; Fortin, B. & Frechette, P. (1994). The Effect of Taxes on Labor Supply in the Underground Economy, American Economic Review 84(1): 231-254.
- Malik, A. (2002). State of the Art in Governance Indicators, UNDP Occasional Papers.
- Meltzer, A. & Richard, S. (1981). A Rational Theory of the Size of Government, Journal of Political Economy 89(51): 914-927.
- Minarik, J. (1979). The Size Distribution of Income during Inflation, Review of Income and Wealth 25(4): 377-392.
- Mirrlees, James (1971). An Exploration in the Theory of Optimum Taxation, Review of Economic Studies, PP, 38(2): 175-208.
- Musgrave Richard and Thin Tun (1948). Income Tax Progression, Journal of Political Economy, PP, 56(6): 498-514.
- O’Kelley, C. R. (1985). Tax Policy for Post-Liberal Society: A Flat- Tax-Inspired Redefinition of the Purpose and Ideal Structure of A Progresive Income Tax, 58 Southern California Law Review, PP, 727-776.
- Persson, T. & Tabellini, G. (1999). Political Economics and Public Finance, NBER Working Paper, No. 7097.
- Peter, K, S; Buttrick, S. & Denvil, D. (2008). Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries, Andrew Young School of Policy Studies Research Paper Series, No. 08-08.
- Piketty, T. & Saez, E. (2003). Income Inequality in the United States, 1913-2000, Quarterly Journal of Economics, 118 (1)1-39.
- Ramsey, F. (1927). A Contribution to the Theory of Taxation Economic Journal, 37(145): 47-61.
- Rezagholizadeh, M. & Aghaei, M. (2016). Investigating the Effect of Direct Tax on the Income Distribution in Iran, Majlis and Rahbord journal, 22 (84), winter 2016, Page 129-156
- Rice, T. W. (1985). An Examination of the Median Voter Hypothesis, the Western Political Quarterly, 38:211-223.
- Sabirianova, P., S. Buttrick and D. Denvil (2008). Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries, Andrew Young School of Policy Studies Research.
- Sameti, M. & Rafie, L. (2010). Interaction of Income Distribution, Taxes and Economic Growth: The Case of Iran and Some Selected East Asian Countries, Iranian Economic Review, Vol.14, No.25.
- Schneider, F. & Enste, D. (2000). Shadow Economies around the World: Size, Causes and Consequences, IMF, Working Paper No.26.
- Yitzhaki, S. (1974). A Note on Income Tax Evasion: A Theoretical Analysis, Journal of Public Economics 3(2): 201-202.
- Young, k; Davoodi, R. and Gupta, S. (2000). Income Distribution and Tax and Government Social Spending Policies in Developing Countries, Washington D.C, IMF, Paper No 214.
- Zarranezhad, M & Anvari, E. (2005). Reviews of Panel Data Application in Econometrics.
- ابونوری، اسمعیل و محبوبه فراهنی (۱۳۹۴)، ساختار تولید و توزیع درآمد در ایران، فصلنامه مدلسازی اقتصادی، سال نهم، شماره ۴.
- ابونوری، اسمعیل (۱۳۸۵)، اثر شاخص های کلان اقتصادی بر توزیع درآمد در ایران: مطالعه بین استانی، مجله تحقیقات اقتصادی، شماره 77.
- ابونوری، عباسعلی و سمیه زیوری (۱۳۹۳)، تاثیر در آمدهای مالیاتی بر رشد اقتصادی و توزیع درآمد پژوهشنامه مالیات، شماره ۲۴.
- پروین، سهیلا (۱۳۹۴)، رشد اقتصادی و طبقه متوسط، فصلنامه پژوهشنامه اقتصادی، سال پانزدهم شماره ۴۲.
- پروین، سهیلا (۱۳۹۵)، آثار هدفمندی یارانه ها بر سبد مصرفی خانوارها، مرکز پژوهش های مجلس.
- پژویان، جمشید (۱۳۹۴)، اقتصاد بخش عمومی مالیات ها، تهران: انتشارات جنگل، چاپ یازدهم.
- حاج یوسفی، امیرمحمد (1378)، دولت، نفت، و توسعه اقتصادی در ایران. تهران: مرکز اسناد انقلاب اسلامی.
- زاینده رودی، محسن (۱۳۸۰)، بررسی تاثیر مالیات درآمد، دستمزد روی عرضه نیروی کار، فصلنامه پژوهش های اقتصادی ایران، شماره ۴۳۷.
- دادگر، یدالله (۱۳۹۲)، اقتصاد بخش عمومی، تهران: انتشارات مفید، چاپ سوم.
- شریعت مصطفوی، سید محمود (۱۳۹۴)، بار مالیاتی بر خانوار در دهک های هزینه ای در ایران، پایان نامه کارشناسی ارشد، دانشگاه علامه طباطبایی.
- مرکز پژوهش های مجلس شورای اسلامی (۱۳۹۲)، دفتر مطالعات و برنامه و بودجه، مالیات ستانی از مجموع درآمد اشخاص.
- نصیری اقدم، علی و اشرف رزمی (۱۳۶۴)، وضع مالیات بر مجموع درآمد اشخاص و شبیه سازی آثار آن بر درآمدهای مالیاتی و توزیع درآمد، فصلنامه پژوهشنامه اقتصادی، سال پانزدهم، شماره 82.
- مهرآرا، محسن و پوریا اصفهانی (۱۳۹۴)، بررسی رابطه توزیع درآمد و ساختار مالیاتی کشورهای منتخب، پژوهشنامه مالیات، شماره ۲۲۸.
- مرکز آمار ایران (https://www.amar.org.ir).
- Arrelano, M. and S. Bond (1991). Some Tests of Specification in Panel Data: Monte Carlo Evidence and an Application to Employment Equations, Review Of Economics and Statistics, 58.
- Aron, J. (2000). Growth and Institutions: A Review of the Evidence, the World Bank Research Observer15 (1):99-135.
- Bahrami, J; Pahlavani, M. & Jansuz, P. (2013). Impact of Bank Credits on Economic Growth in Selected Developing Countries by Using GMM Method, Journal of Monetary Bank Research, 15: 77-96.
- Bali M. Asadollahzadeh (2008). The Impacts of Taxes on Inequality and Income Distribution in Iran, Journal of tax research, 16(1): 73-92.
- Baltagi, B. H. (2008). Econometric Analysis of Panel Data, Chichester: John Wiley and Sons Ltd.
- Bankman, Joseph and Thomas Griffith (1987). Social Welfare and the Rate Structure: A New Look At Progressive Taxation, California Law Review, 75, PP.
- Blundell, R. and S. Bond (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87, PP, 11-143.
- Bird, R. M. & Zolt, E. M. (2005). Redistribution via Taxation: The Limited Role of the Personal Income Tax in Developing Countries, 0508.
- Deaton, A. (1997). The Analysis of Household Surveys: A Micro econometric Approach to Development Policy, The John Hopkins University Press, Baltimore.
- Duncan, D. & Peter, K. S. (2008). Tax Progressivity and Income Inequality, Journal of the Andrew Young School of Policy Studies.
- Echevarría, C. (2014). Income Tax Progressivity, Growth, Income Inequality and Welfare, Journal of Spanish Economic Association, Series 6:43–72.
- Eliasson, Jonas. Pyddokec, Roger & Jan ErikSwärdh (2018). Distributional effects of taxes on car fuel, use, ownership and purchases, Economics of Transportation, Volume 15, Pages 1-15.
- Engstrom, Per. & Holmlund, B. (2009). Tax Evasion and Self-employment in a High-tax Country: Evidence from Sweden, Applied Economics.
- Falahi, M; Mahdavi A, M & Jandaghi M, F. (2014). Natural Resource Rents and Corruption in OPEC Countries: A Panel Data Approach, Iranian Energy Economics, 11: 195-227.
- Freire-seren, M, J. & Panades, J. (2008). Does Tax Evasion Modify the Redistributive Effect of Tax Progressivity? Social Science Research Network, 84, No267, PP: 486-495.
- Gale, W. G; Kearney, M. S. & Orszag, P. (2015). Would a Significant Increase in the Top Income Tax Rate Substantially Alter Income Inequality? Journal of Economic Studies at Boookings.
- Galvin, C. And B. I. Bittker (1969). The Income Tax: How Progressive Should Itbe? Rational Debate Seminars, Washington, Americanenterprise Institute for Public Policy Research.
- Gilak. H. A, M. (2001). Comparative Analysis of Distributive Effect of Income Tax in Islam and Income Tax System in Iran, Journal of Economic Research (Tahghighat-e-Eghtesadi), 57: 189-228.
- Gravelle, J. (1992). Equity Effects of the Tax Reform Act of Journal of Economic Perspectives, 6(1), PP, 27-44.
- Green, David, Riddell A.Craig and St-Hilaire France (2015). Income Inequality: The Canadian Story, Art of the State Series.
- Gorodnichenko, Y; Martinez-Vazquez, J. & Sabirianova Peter, K. (2008). Myth and Reality of Flat Tax Reform: Micro Estimates of Tax Evasion Response and Welfare Effects in Russia, NBER Working Paper Series, No. 13719.
- Harris, J, R. & Todaro, M, P. (1970). Migration, Unemployment, and Development: A Two-Sector Analysis, 60 AM, Econ, Rev, 126.
- Husted, T. A. & Kenny, L. W. (1997). The Effect of the Expansion of the Voting Franchise on the Size of Government, The Journal of Political Economy, 105, No. 1, PP: 54-89.
- Kaplow, L. and Shavell, S. (2002). Fairness Versus Welfare: Notes on the Pareto Principle, Preferences, and Distributive Justice, The Journal of Legal Studies, 32(1), Pages: 331-362.
- Khanzadi, A; Heidariyan, M. & Moradi, S. (2014). Investigating and Analyzing the Role and Effects of Tax Revenues on Income Distribution and Human Development, Journal of Quantitative Economics, 11: 135-158.
- Kumar, A. (2008). Labor Supply, Deadweight Loss and Tax Reform Act of 1986: A Nonparametric Evaluation Using Panel Data, Journal of Public Economics 92(1-2): 236-253.
- Lediga, Collen. Riedel, Nadine Kristina, Strohmaier (2018). The elasticity of corporate taxable income, Evidence from South Africa, Economics Letters, Volume 175, Pages 43-46.
- Lemieux, T; Fortin, B. & Frechette, P. (1994). The Effect of Taxes on Labor Supply in the Underground Economy, American Economic Review 84(1): 231-254.
- Malik, A. (2002). State of the Art in Governance Indicators, UNDP Occasional Papers.
- Meltzer, A. & Richard, S. (1981). A Rational Theory of the Size of Government, Journal of Political Economy 89(51): 914-927.
- Minarik, J. (1979). The Size Distribution of Income during Inflation, Review of Income and Wealth 25(4): 377-392.
- Mirrlees, James (1971). An Exploration in the Theory of Optimum Taxation, Review of Economic Studies, PP, 38(2): 175-208.
- Musgrave Richard and Thin Tun (1948). Income Tax Progression, Journal of Political Economy, PP, 56(6): 498-514.
- O’Kelley, C. R. (1985). Tax Policy for Post-Liberal Society: A Flat- Tax-Inspired Redefinition of the Purpose and Ideal Structure of A Progresive Income Tax, 58 Southern California Law Review, PP, 727-776.
- Persson, T. & Tabellini, G. (1999). Political Economics and Public Finance, NBER Working Paper, No. 7097.
- Peter, K, S; Buttrick, S. & Denvil, D. (2008). Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries, Andrew Young School of Policy Studies Research Paper Series, No. 08-08.
- Piketty, T. & Saez, E. (2003). Income Inequality in the United States, 1913-2000, Quarterly Journal of Economics, 118 (1)1-39.
- Ramsey, F. (1927). A Contribution to the Theory of Taxation Economic Journal, 37(145): 47-61.
- Rezagholizadeh, M. & Aghaei, M. (2016). Investigating the Effect of Direct Tax on the Income Distribution in Iran, Majlis and Rahbord journal, 22 (84), winter 2016, Page 129-156
- Rice, T. W. (1985). An Examination of the Median Voter Hypothesis, the Western Political Quarterly, 38:211-223.
- Sabirianova, P., S. Buttrick and D. Denvil (2008). Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries, Andrew Young School of Policy Studies Research.
- Sameti, M. & Rafie, L. (2010). Interaction of Income Distribution, Taxes and Economic Growth: The Case of Iran and Some Selected East Asian Countries, Iranian Economic Review, Vol.14, No.25.
- Schneider, F. & Enste, D. (2000). Shadow Economies around the World: Size, Causes and Consequences, IMF, Working Paper No.26.
- Yitzhaki, S. (1974). A Note on Income Tax Evasion: A Theoretical Analysis, Journal of Public Economics 3(2): 201-202.
- Young, k; Davoodi, R. and Gupta, S. (2000). Income Distribution and Tax and Government Social Spending Policies in Developing Countries, Washington D.C, IMF, Paper No 214.
- Zarranezhad, M & Anvari, E. (2005). Reviews of Panel Data Application in Econometrics.