Tax brackets are used to implement progressive taxation and equity
Tax brackets are a standard fiscal mechanism used to establish progressive tax rates, which in turn promote income redistribution and vertical equity.
The retrieved literature consistently discusses personal income taxes, progressivity, and equity, noting that progressive rate structures (tax brackets) are explicitly used as tools for vertical redistribution. Papers [0] and [1] directly connect tax progressivity to equity outcomes, supporting the claim.
A. Wagstaff, E. Doorslaer, Hattem Van Der Burg, S. Calonge, T. Christiansen, Guido Citoni, U. Gerdtham, M. Gerfin, Lorna Gross, Unto Häkinnen, J. John, Paul D R Johnson, J. Klavus, C. Lachaud, J. Lauridsen, R. Leu, B. Nolan, E. Peran, C. Propper, F. Puffer, L. Rochaix, Marisol Rodríguez, M. Schellhorn, G. Sundberg, O. Winkelhake. Redistributive effect, progressivity and differential tax treatment: Personal income taxes in twelve OECD countries. 1999. https://doi.org/10.1016/S0047-2727(98)00085-1
The paper decomposes personal income taxes to show how progressivity and rate structures directly affect vertical redistribution and equity across multiple OECD countries.
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Sergio Wulf Gobetti, Rodrigo Octávio Orair. Taxation and distribution of income in Brazil: new evidence from personal income tax data. 2017. https://doi.org/10.1590/0101-31572017V37N02A01
The paper analyzes income and profit taxes, demonstrating how failures in progressivity and tax exemptions undermine both vertical and horizontal equity.
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