What has happened to the personal income tax base since 2011?

Image: Markus Winkler on Unsplash.

Earlier this month, Econ3x3 published an article by Andrew Donaldson which provides estimates of the trend in the size and distribution of the personal income tax base over the period of 2011-2023. The number of personal income taxpayers and aggregate taxable income increased strongly between 2011 and 2017 despite a slowing economy. These both declined during the COVID-19 pandemic period and have since recovered, though more slowly than in the earlier period. In 2023, there were 7.6 million taxpayers above the tax threshold, up from 5.9 million in 2011. The article also explores the role that tax policy played in the resilience of the tax base, and what the trends indicate about progress towards a more inclusive economy. Read the article.