Document Type : Original Article
Authors
1
Phd Scholar at Department of Economic, Science and Research Branch, Islamic Azad University, Tehran
2
Professor at Department of Economic, Allame Tabatabaei University, Tehran, Iran
3
Assistant Professor at Department of Economic, Allame Tabatabaei University, Tehran, Iran
4
Associate Professor at Department of Economic, Science and Research Branch, Islamic Azad University, Tehran, Iran
Abstract
Today, in many parts of the world, local taxes are considered to be a just and stable tax base because of their efficiency and benefits. Local tax is a tax that is determined by local authorities at a rate or base, and its role is to provide credit for services whose collective benefits are exploited by local residents. This tax, like national taxes, covers income distribution issues. Similar to national taxes, it involves the problem of income distribution. Given the importance of this issue and in pursuit of rational economic policies to balance income distribution, the main purpose of this study is to investigate the effect of local income tax and local sales tax on income distribution with emphasis on macroeconomic variables.. In this study, econometric-based analysis using GMM method, 12 selected OECD countries include Austria, Denmark, Finland, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Turkey, the United Kingdom. Locally they have been studied from 2004 to 2014. The results show that with the increase in local income tax and GDP growth, the Gini coefficient decreases as a result of income inequality, but with the increase in local sales tax and inflation, the Gini coefficient increases and income inequality increases.
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