Income Tax, progressivity and ability to pay, who supports the tax burden in Tungurahua?

Abstract

According to the tax system in Ecuador, the Income Tax is a progressive tax that is applied directly to the income of taxpayers based on their ability to pay. This is reflected in the Province of Tungurahua where there is an increasing number of tax payers, and where it is high income individuals who are being taxed, thus allowing for an adequate redistribution of wealth, without affecting the right to property. The effective tax rate is well below the Latin American average and ruling out the possibility of a confiscatory taxation, could potentially reduce tax contributions through the deduction of personal expenses as per the tax equity policy.

DOI: https://doi.org/10.31164/bcoyu.12.2017.624

URL: http://revistas.uta.edu.ec/erevista/index.php/bcoyu/article/view/624