Title: The effect of income components and tax on inequality in Thailand under comprehensive income

Authors: Voramast Limteerakul

Addresses: Faculty of Economics, Chulalongkorn University, 254 Phayathai Road, Wangmai, Pathum Wan, 10330, Bangkok

Abstract: This study compares the effects of money income, capital gains, and income tax on inequality in Thailand. The study scope is broadened from money to comprehensive income. Over 1997-2015, labour earnings were the main income source for Thai people. However, the main culprit of persistent inequality was real estate gains due to asset concentration, and asset price appreciation. The redistributive impact of income tax was far less to counteract the force of capital gains due to a small tax base and tax deductions on investment. Government may consider tax on capital gains to bridge the income gap.

Keywords: D31 income and wealth distribution; D33 factor income distribution; D63 inequality; H23 tax redistributive effects; H24 personal income tax.

DOI: 10.1504/IJTGM.2021.114062

International Journal of Trade and Global Markets, 2021 Vol.14 No.2, pp.154 - 165

Received: 28 May 2019
Accepted: 11 Nov 2019

Published online: 20 Mar 2021 *

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