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EXTRA TAX RESULTING FROM INCOME VARIATION WITH PARTICULAR REFERENCE TO NEW ZEALAND
Author(s) -
McArthur A.T.G.
Publication year - 1969
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1969.tb00056.x
Subject(s) - economics , adjusted gross income , variance (accounting) , gross income , standard deviation , income tax , demographic economics , state income tax , econometrics , labour economics , tax reform , public economics , statistics , mathematics , accounting
The extent by which expected tax payments are increased by income variance is discussed in the New Zealand setting. The cases of both normal and rectangular distributions of income are examined. The absolute magnitude of the expected extra tax for income fluctuation is lower than was expected. In Australia income variance may be higher but the more rapidly progressive tax rates of New Zealand mean that for a given mean income and standard deviation the extra tax in that country would be higher.