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The elasticity of taxable income: New data and estimates for South Africa

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  • Johannes Hermanus Kemp

Abstract

The elasticity of taxable income is a key tax policy parameter that plays an important role in the formulation of tax and transfer policy. This paper extends work by Kemp (2019) by using a new panel of individual tax returns and the phenomenon of 'bracket creep' to produce updated estimates of the elasticity of taxable income for South Africa. Whereas the previous work focused on assessed taxpayers (i.e.

Suggested Citation

  • Johannes Hermanus Kemp, 2020. "The elasticity of taxable income: New data and estimates for South Africa," WIDER Working Paper Series wp-2020-29, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-29
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-29.pdf
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    Cited by:

    1. Hylton Hollander, 2024. "Debt-financed fiscal stimulus in South Africa," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 48(1), pages 87-112, January.
    2. Maya Goldman & Ntuthuko Hlela, 2024. "Tax financing options for new social protection instruments: The equity implications of taxing more to expand the South African social security system," WIDER Working Paper Series wp-2024-56, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    Fiscal policy; Elasticity; Taxable income; Optimal tax;
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