how to calculate tax rate for overall economy if the tax rates for different heads are not available ?? i have found 2 measures in literarures (1) tax revenue to gdp ratio as avarage tax rate (see Taner Turan et al. 2014, Jayawickrama and Abeysinghe 2013) (2) Empirical works of Rudi Kurniawan (2011), Mesut KARAKAS (2014) etc estimated overall tax rate as central govt tax revenue divided by GDP. Which tax rate is representative one for whole economy? And Why ?? What is the logic to said it as tax rate in Public finance ??
A gross effective tax rate for an economy is measured by dividing gross revenues from all levels if government by GDP.
If this data is not available it can be estimated by calculating a weighted average of all tax rates, a very difficult task if regional and local governments have taxing power.
Marcos Cintra Cavalcanti de Albuquerque thanks you sir for your reply. the total revenue your are talking about, is it the total revenue of the central government or only total tax revenue ?
i have gone through various literature but the concrete definition and theoretical justification for measuring gross effective tax rate is not found. Any suggestions and literature is highly appreciable.
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