Show simple item record

dc.contributor.authorFairfield, Tasha
dc.contributor.authorJorratt, Michel
dc.coverage.spatialChileen
dc.date.accessioned2016-03-23T11:45:55Z
dc.date.available2016-03-23T11:45:55Z
dc.date.issued2014-01
dc.identifier.citationFairfield, T. and Jorratt, M. (2014) Top Income Shares, Business Profits, and Effective Tax Rates in Contemporary Chile. ICTD Working Paper 17. Brighton: IDS.en
dc.identifier.isbn978-1-78118-150-8
dc.identifier.urihttp://opendocs.ids.ac.uk/opendocs/handle/123456789/10247
dc.descriptiontop incomes; inequality; taxation; effective tax rates; Chile; Latin America.en
dc.description.abstractThis paper contributes to the burgeoning research on inequality and top incomes around the globe by presenting the first available estimates of top income shares and effective income tax rates in contemporary Chile based on analysis of anonymous income tax return microdata. We pay special attention to business income, which dominates at the top of the distribution. Our analysis includes not only distributed profits, but also the large proportion of accrued profits retained by firms. Our most conservative estimate of the income share received by the top 1 per cent of Chileans, constructed directly from income reported to the tax agency, is 15 per cent for 2005 and 2009 – the fifth highest share reported in the top incomes literature. When distributed profits are adjusted for widespread under-reporting, we estimate that the top 1 per cent share increases to roughly 22 per cent. When distributed profits are replaced by accrued profits in our definition of income, we obtain 19 per cent as our lowest estimate for the top 1 per cent share. Despite this impressive income concentration, the rich in Chile pay modest effective income tax rates. The top 1 per cent pay an average effective rate of 16-17 per cent when distributed profits are not adjusted for under-reporting, and less than 9 per cent when distributed profits are adjusted to national accounts. When we include corporate income tax and accrued profits in our analysis (without adjustments), the effective tax burden for the top 1 per cent is 16 per cent.en
dc.description.sponsorshipDfID, NORADen
dc.language.isoenen
dc.publisherInstitute of Development Studiesen
dc.relation.ispartofseriesICTD Working Paper;17
dc.rightsTop Income Shares, Business Profits, and Effective Tax Rates in Contemporary Chile Tasha Fairfield and Michel Jorratt ICTD Working Paper 17 First published by the Institute of Development Studies in January 2014 © Institute of Development Studies 2014 ISBN: 978-1-78118-150-8 A catalogue record for this publication is available from the British Library. All rights reserved. Reproduction, copy, transmission, or translation of any part of this publication may be made only under the following conditions: - with the prior permission of the publisher; or - with a licence from the Copyright Licensing Agency Ltd., 90 Tottenham Court Road, London W1P 9HE, UK, or from another national licensing agency; or - under the terms set out below. This publication is copyright, but may be reproduced by any method without fee for teaching or nonprofit purposes, but not for resale. Formal permission is required for all such uses, but normally will be granted immediately. For copying in any other circumstances, or for reuse in other publications, or for translation or adaptation, prior written permission must be obtained from the publisher and a fee may be payable. Available from: Communications Unit, Institute of Development Studies, Brighton BN1 9RE, UK Tel: +44 (0) 1273 915637 Fax: +44 (0) 1273 621202 E-mail: bookshop@ids.ac.uk Web: www.ids.ac.uk/ids/bookshop IDS is a charitable company limited by guarantee and registered in England (No. 877338)en
dc.rights.urihttp://www.ids.ac.uk/files/dmfile/IDSOpenDocsStandardTermsOfUse.pdfen
dc.subjectEconomic Developmenten
dc.titleTop Income Shares, Business Profits, and Effective Tax Rates in Contemporary Chileen
dc.typeIDS Working Paperen
dc.rights.holderInstitute of Development Studiesen
dc.identifier.externalurihttp://www.ictd.ac/ju-download/2-working-papers/10-top-income-shares-business-profits-and-effective-tax-rates-in-contemporary-chile


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record