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Tax incidence --- Taxation --- Statistical methods.

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Income tax --- Social security taxes --- Tax incidence --- Law and legislation

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Income tax --- Tax incidence --- Working class --- Investment advisors --- Taxation --- Taxation

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Who benefits from public spending? Who bears the burden of taxation? How desirable is the distribution of net benefits from the operation of a tax-benefit system? This paper surveys basic concepts, methods, and modeling approaches commonly used to address these issues in the context of fiscal incidence analysis. The review covers the incidence of both taxation and public spending. Methodological points are supported by country cases. The effective distribution of benefits and burdens associated with fiscal policy depends on the size of the government, the distributive mechanisms involved, and the incentives properties of the policy under consideration. This creates a need for analytical methods to account for both individual behavior and social interaction. The approaches reviewed include simple reduced form regression analysis, microsimulation models (both the envelope and discrete choice models), computable general equilibrium modeling, and approaches that link computable general equilibrium models to microsimulation models. Explicit modeling facilitates the construction of counterfactuals to back up causal analysis. Social desirability is assessed on the basis of progressivity along with deadweight loss.

Debt Markets --- Economic Theory and Research --- Emerging Markets --- Finance and Financial Sector Development --- Macroeconomics and Economic Growth --- Personal income tax --- Private Sector Development --- Progressive tax --- Public Sector Economics and Finance --- Tax --- Tax incidence --- Tax liability --- Tax policy --- Tax Shifting --- Tax system --- Taxation --- Taxation and Subsidies --- Taxpayers

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Income inequality in Latin America ranks among the highest in the world. It can be traced back to the unequal distribution of assets (especially land and education) in the region. But the extent to which asset inequality translates into income inequality depends on the redistributive capacity of the state. This paper documents the performance of Latin American fiscal systems from the perspective of income redistribution using newly-available information on the incidence of taxes and transfers across the region. The findings indicate that: (i) the differences in income inequality before taxes and transfers between Latin America and Western Europe are much more modest than those after taxes and transfers; (ii) the key reason is that, in contrast with industrial countries, in most Latin American countries the fiscal system is of little help in reducing income inequality; and (iii) in countries where fiscal redistribution is significant, it is achieved mostly through transfers rather than taxes. These facts stress the need for fiscal reforms across the region to further the goal of social equity. However, different countries need to place different relative emphasis on raising tax collection, restructuring the tax system, and improving the targeting of expenditures.

Debt Markets --- Economic Theory and Research --- Effective tax rates --- Emerging Markets --- Finance and Financial Sector Development --- Indirect taxation --- Macroeconomics and Economic Growth --- Poverty Impact Evaluation --- Poverty Reduction --- Private Sector Development --- Tax --- Tax collection --- Tax incidence --- Tax rate --- Tax rates --- Tax revenue --- Tax revenues --- Tax system --- Taxation and Subsidies