Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany

ABSTRACT The progressivity of a country’s tax system can be crucial for reducing income and regional inequalities. Focusing on the cases of Germany and Brazil, in this article we analyze the tax system progressivity through an original indicator based on the Personal Income Tax (PIT) and the Value A...

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Main Authors: RAIHAN MIAN, SWARNA BINTAY KADIR, DIEGO SANCHES CORRÊA
Format: Article
Language:English
Published: Editora 34 2025-03-01
Series:Brazilian Journal of Political Economy
Subjects:
Online Access:http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572025000200207&tlng=en
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author RAIHAN MIAN
SWARNA BINTAY KADIR
DIEGO SANCHES CORRÊA
author_facet RAIHAN MIAN
SWARNA BINTAY KADIR
DIEGO SANCHES CORRÊA
author_sort RAIHAN MIAN
collection DOAJ
description ABSTRACT The progressivity of a country’s tax system can be crucial for reducing income and regional inequalities. Focusing on the cases of Germany and Brazil, in this article we analyze the tax system progressivity through an original indicator based on the Personal Income Tax (PIT) and the Value Added Tax (VAT) to determine its association with income and regional inequalities at the national and sub-national levels. We show that a progressive tax system reduces income and regional inequalities.
format Article
id doaj-art-1fe0fdf67d97486e8529326988b4c3d4
institution Kabale University
issn 1809-4538
language English
publishDate 2025-03-01
publisher Editora 34
record_format Article
series Brazilian Journal of Political Economy
spelling doaj-art-1fe0fdf67d97486e8529326988b4c3d42025-08-20T03:44:32ZengEditora 34Brazilian Journal of Political Economy1809-45382025-03-0145210.1590/0101-31572025-3629Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and GermanyRAIHAN MIANhttps://orcid.org/0009-0008-0004-6291SWARNA BINTAY KADIRhttps://orcid.org/0000-0001-6248-9997DIEGO SANCHES CORRÊAhttps://orcid.org/0000-0002-1795-1158ABSTRACT The progressivity of a country’s tax system can be crucial for reducing income and regional inequalities. Focusing on the cases of Germany and Brazil, in this article we analyze the tax system progressivity through an original indicator based on the Personal Income Tax (PIT) and the Value Added Tax (VAT) to determine its association with income and regional inequalities at the national and sub-national levels. We show that a progressive tax system reduces income and regional inequalities.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572025000200207&tlng=enTax policypersonal income taxvalue added taxincome inequalityGini coefficientprogressivity indicator
spellingShingle RAIHAN MIAN
SWARNA BINTAY KADIR
DIEGO SANCHES CORRÊA
Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany
Brazilian Journal of Political Economy
Tax policy
personal income tax
value added tax
income inequality
Gini coefficient
progressivity indicator
title Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany
title_full Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany
title_fullStr Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany
title_full_unstemmed Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany
title_short Impact of tax progressivity on regional income inequalities: a comparative analysis between Brazil and Germany
title_sort impact of tax progressivity on regional income inequalities a comparative analysis between brazil and germany
topic Tax policy
personal income tax
value added tax
income inequality
Gini coefficient
progressivity indicator
url http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572025000200207&tlng=en
work_keys_str_mv AT raihanmian impactoftaxprogressivityonregionalincomeinequalitiesacomparativeanalysisbetweenbrazilandgermany
AT swarnabintaykadir impactoftaxprogressivityonregionalincomeinequalitiesacomparativeanalysisbetweenbrazilandgermany
AT diegosanchescorrea impactoftaxprogressivityonregionalincomeinequalitiesacomparativeanalysisbetweenbrazilandgermany