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Trends in Top Incomes and Their Tax Policy Implications

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Abstract:

This chapter uses data derived from tax returns to analyse trends in the share of pre‐tax personal income going to top income recipients. It begins with a discussion of its data sources, explaining why it has taken tax returns rather than household survey data. It then sets out the statistics behind the trends in top incomes during the three decades to 2008. In the following section it seeks to explain the top income trends, before considering their implications for tax policy. The last section concludes..

Document Type: Review Article

Publication date: December 1, 2011

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