We value your privacy
This research provides a detailed examination of the redistributive effect achieved by the tax system including
total taxes and cash transfers targeting the contributors and households in the period 2002-2008-2014 for the Mexican regions and the country. We measure the impact on income growth through the tax system according to each fiscal rules for the corresponding years using pre and post fiscal conditions. We answer the next question: considering the economic growth on per capita incomes in the Mexican states, will the impact of the Mexican tax system improve income distribution? That is, by all means pro-poor? Our methodology allows to detect if taxes and benefits can really induce an improvement of income growth on the regions captured by its wellbeing and economic growth conditions. We outlined relevant theoretical issues on public fiscal policies concerning this work and lastly, we proceed with an empirical application to develop some recommendations for the Mexican fiscal policy system.
... Further analysis of the marginal changes in income tax rates with respect to gross wages shows positive change for the entire income distribution. These marginal changes remain near zero up until the 30th percentile by virtue of the pro-poverty effect of the tax system for this segment of the population (Huesca and Llamas, 2016). On the contrary, the effective tax rate for the top 1 wage earners is close to 20 percent, even though statutory tax rate is 35 percent. ...
The objective of this work is to measure the effect of income tax on wages in Mexico with respect to gender and working hours. A microsimulation of the tax burden of formal wage earners was carried out, using a non-parametric method to avoid assuming a functional relationship of variables through the use of the Gaussian kernel function. The results show that the tax burden only falls on 60% of salaried employees. Men bear a higher tax burden than women and an increase in working hours does not cause a significant increase in the payment of the tax. It is recommended to establish strategies in favor of better salaries that allow an increase in collection. The limitation of the study is that it does not consider the incidence of corporate or self-employed taxes. The originality of this is to offer an alternative measure of income tax considering wages and working hours without establishing a priori conditions between them. The conclusion is that a low-wage labor market will not contribute to the strengthening of public income.
This text addresses the understanding and alleviation of poverty, inequality, and inequity using a unique and broad mix of concepts, measurement methods, statistical tools, software, and practical exercises. Part I discusses basic fundamental issues of well-being and poverty measurement. Part II develops an integrated framework for measuring poverty, social welfare, inequality, vertical equity, horizontal equity, and redistribution. Part III presents and develops recent methods for testing the robustness of distributive rankings. Part IV discusses ways of using policy to alleviate poverty, improve welfare, increase equity, and assess the impact of growth. Part V applies the tools to real data.
Most of the book’s measurement and statistical tools have been programmed in DAD, a well established and widely available free software program that has been tailored especially for income distribution analysis and is used by scholars, researchers, and analysts in nearly 100 countries worldwide. It requires basic understanding of calculus and statistics.
Abdelkrim Araar and Jean-Yves Duclos teach economics at Université Laval in Québec City.
A comprehensive tax and benefit incidence analysis is presented covering the redistributive fiscal instruments implemented in Mexico in 2008 and 2010, representative of the urban and rural sectors, as well as nationally. The expansion of basic social programs and effectively targeted direct monetary transfers have increased the progressivity of Mexico's fiscal system in recent years. However, the overall redistributive impact of this system is limited by a comparatively unproductive tax system, a comparatively small share of resources allocated to direct transfers, and a significant share of spending tied to instruments with low redistributive effectiveness (subsidies to contributory social security systems, generalized consumer subsidies, and tertiary public education). The transition to a more effective and equitable fiscal system will require a comprehensive tax-benefits reform designed to improve tax productivity and benefit equity, combining a broad tax base with universally accessible public services and social protection.
PRÉCIS Cet article donne un aperçu personnel des grands changements, théoriques et pratiques, qui se sont produits en politique fiscale au cours des dernières décennies. Il présente également certaines hypothèses sur les tendances à venir dans ce domaine. La première section de l'article donne un compte rendu des deux plus importantes réformes fiscales qui furent entreprises au Canada. La première étant celle qui suivit le rapport Carter de 1966 et aboutit à la nouvelle loi de l'impôt sur le revenu de 1971, et la seconde, celle de la fin des années 1980 qui mena à l'introduction de la taxe sur les produits et services (TPS) en 1991. A partir de ces observations, la seconde section fait la comparaison entre la pensée académique traditionnelle d'il y a 40 ans, et la conception très différente de la politique fiscale avancée par les théoriciens de l'économie aujourd'hui. Quoique la relation soit plutôt faible entre ce que les économistes recommandent et ce que les responsables politiques font, cette brève analyse est susceptible d'intéresser ceux qui se demandent pourquoi les économistes disent les choses qu'ils disent, et pourquoi ce qu'ils disent aujourd'hui est souvent très différent de ce qu'ils disaient il y a quelques années.
This paper studies the pro-poor growth in the Latino American Andean countries. We first present different definitions of pro-poorness and the related methods in order to generate the statistically robust results for classes of pro-poor measures. Also, we present the non anonymous pro-poor approach and we propose also a new method to study the inter-temporal pro-poor growth with the aim to capture the change of wellbeing of the poor over time. We apply these procedures to five L.A. countries, which are Ecuador, Colombia, Peru, Bolivia and Venezuela for the period between 2005 and 2010. In general, we find strong statistical evidence that the Andean L.A. countries growths have been absolutely and relatively pro-poor for the period between 2005 and 2010. However, the 2008 world economic crisis has affected temporarily growth and the latter was not absolutely pro-poor during this economic crisis. Starting from 2009, the L.A. countries have registered a remarkable economic recovery. This recovery has helped to growth to absolutely pro-poor and thus, to continue to reduce poverty in this region of world.
This paper attempts to explain the concept of pro-poor growth, and argues that it represents a major departure from the "trickle-down"phenomenon. It proposes a new indicator— the pro-poor growth index— that measures the degree to which growth can be considered to be pro-poor. The new indicator is used to analyze the nature of economic growth in three countries, namely, Lao PDR, Thailand and Korea.