Tax Parameters in the Portuguese Economy: Part Ii - Direct Taxes

Quarterly Economic Bulletin - Banco de Portugal, Vol 7, No. 2, pp. 31-43, June 2001

12 Pages Posted: 16 Jan 2005

See all articles by Alfredo M. Pereira

Alfredo M. Pereira

College of William and Mary

Pedro G. Rodrigues

CAPP and ISCSP, Universidade Técnica de Lisboa

Abstract

In the second of two twin papers, we focus on direct taxes and formally discuss the correspondences between statutory and effective tax rates in the Portuguese economy. These correspondences depend on the details of the Portuguese tax law, on a wealth of data information, and on certain priors about the values of behavioral parameters in the economy. For each of the different tax margins, we choose a specification of the tax base that is standard in tax policy evaluation exercises, albeit necessarily only an approximation to the true tax base. In addition to the general correspondences, we present our own estimates of the effective tax rates at the different tax margins. More importantly, however, using the information in this paper, practitioners of tax policy evaluation can obtain their own estimates of the relevant tax parameters.

Keywords: Effective tax rates

JEL Classification: H20

Suggested Citation

Pereira, Alfredo M. and Rodrigues, Pedro G., Tax Parameters in the Portuguese Economy: Part Ii - Direct Taxes. Quarterly Economic Bulletin - Banco de Portugal, Vol 7, No. 2, pp. 31-43, June 2001. Available at SSRN: https://ssrn.com/abstract=649364

Alfredo M. Pereira (Contact Author)

College of William and Mary ( email )

Williamsburg, VA 23187-8795
United States
757-221-2431 (Phone)
757-221-2390 (Fax)

Pedro G. Rodrigues

CAPP and ISCSP, Universidade Técnica de Lisboa ( email )

Rua Almerindo Lessa
Lisboa, 1300-663
Portugal
+351213619430 (Phone)
+351213619442 (Fax)

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