DIGGING INTO THE CHANNELS OF BUNCHING: EVIDENCE FROM THE URUGUAYAN INCOME TAX

• 成果类型: Article
• 署名作者: Bergolo, Marcelo; Burdin, Gabriel; De Rosa, Mauricio; Giaccobasso, Matias; Leiter, Martin
• 署名单位: Universidad de la Republica, Uruguay; IZA Institute Labor Economics; University of Leeds; Paris School of Economics; University of California System; University of California Los Angeles
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueab002
• 发表日期: 2021
• 页码: 2726-2762
• 关键词: taxable income; optimization frictions; deadweight loss; elasticity; evasion; rates; taxation; responses; capacity; uncover

摘要

Based on detailed administrative tax records. we implement a bunching design to explore how individual taxpayers respond to personal income taxation in Uruguay. We estimate a very modest elasticity of taxable income at the first kink point (0.06) driven by a combination of gross labour income and deduction responses. Taxpayers use personal deductions more intensively close to the kink point and underreport income to the tax authority. Our results suggest that the efficiency costs of taxation are not necessarily large in contexts characterised by limited deduction opportunities. Policy efforts should be directed at broadening the tax base and improving enforcement capacity.