Analysis of incidence of potential fiscal reforms
| Areas | : | Poverty and equality |
|---|---|---|
| Researcher/s in charge | : | Miguel Jaramillo |
| Other researchers | : | Bárbara Sparrow |
| Execution time | : | February 2013 - December 2013 |
Presentation
The State has the capacity to alter the distribution of income through the fiscal policy tools. Accordingly, a question that arises is, How does the State’s action affect this distribution? How progressive are taxes in the country? Are the social programs able to affect this distribution significantly? This study addresses these questions through an analysis of the incidence of taxes and government cash transfers during the years 2005, 2009 and 2011. The approach consists in estimating the incidence of taxes and cash transfers on household income, as well as the impact analysis of the fiscal policy tools concerning poverty and inequality indicators. Furthermore, potential fiscal reform scenarios are simulated. The data required to perform such estimates are mainly sourced from public accounts, the National Households Survey (ENAHO) and a de-identified tax payment database provided by the National Superintendence of Tax Administration (SUNAT).
