DAUN LONTAR

Karena Yadnya Yang Paling Utama adalah Pengetahuan (Jnana)

The Race to The Bottom, Competitiveness and Inequality

Posted by I Wayan Agus Eka on December 18, 2017

This is the original version of my article published in The Jakarta Post. In this version i will only add several graphs that was eliminated in the published version. Hopefully it will add more understanding for the reader.

Pictures below show how the race to the bottom phenomenon evolves in the last 15 years.

1

2

3

Source:

  • based on data from KPMG
  • the country’s grouping is based from World Bank data
  • tax heaven country classification is based from Jane G. Gravelle, “Tax Havens: International Tax Avoidance and Evasion, Congressional Research Service Report, No. 7-5700/R40623 (2015), Table 1.

The graph below shows the correlation, if we can’t say an accusation, between the progressivity of tax (represented by the top marginal income tax rate (MITR)-left scale) and wealth accumulation (proxied by income share for the top 1% earner-right scale) in the US for period 1913 – 2013.

4

Source:

  1. for MITR: http://piketty.pse.ens.fr/en/capital21c2
  2. for Post-tax income: http://wid.world/data/

 

I Wayan Agus Eka

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: