Social Spending, Taxes and Income Redistribution in Uruguay
How much redistribution does Uruguay accomplish through social spending and taxes? How progressive are revenue collection and social spending? A standard fiscal incidence analysis shows that Uruguay achieves a nontrivial reduction in inequality and...
Main Authors: | , , , |
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Format: | Policy Research Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2013
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2013/03/17408998/social-spending-taxes-income-redistribution-uruguay http://hdl.handle.net/10986/13179 |
Summary: | How much redistribution does Uruguay
accomplish through social spending and taxes? How
progressive are revenue collection and social spending? A
standard fiscal incidence analysis shows that Uruguay
achieves a nontrivial reduction in inequality and poverty
when all taxes and transfers are combined. In comparison
with five other countries in Latin America, it ranks first
(poverty reduction) and second (inequality reduction), and
first in terms of poverty reduction effectiveness and third
in terms of overall (including transfers in-kind) inequality
reduction effectiveness. Direct taxes are progressive and
indirect taxes are regressive. Social spending on direct
transfers, contributory pensions, education and health is
quite progressive in absolute terms except for tertiary
education, which is almost neutral in relative terms. |
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