Abstract

TORRES REMIREZ, José. Bunching: A review. El trimestre econ [online]. 2023, vol.90, n.360, pp.1141-1163.  Epub Feb 19, 2024. ISSN 2448-718X.  https://doi.org/10.20430/ete.v90i360.1783.

The progressiveness of the fiscal system is achieved by the personal income tax in the majority of developed countries. However, this structure generated a change in the behavior of the taxpayers. Tax inefficiency is measured through taxpayer behavior change; bunching is one of the last ways to measure that inefficiency. In the last decade, articles about bunching in direct taxation have uncovered certain common trends for any taxpayer. With this review of the literature, we have been able to learn what the lessons are and show the points where the state could increase tax efficiency. The taxpayers who opt for the grouping are those who obtain less income, and those who earn income from self-employment and companies. This knowledge makes it possible to establish the limits of what policymakers could do in the taxing subject.

Keywords : Bunching; personal income tax; tax inefficiency; evasion.

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