Simulation modeling of income dynamics and income tax burden

Abstract

The article presents a comparative analysis of income tax burden in BRICS countries using simulation modelling. Macroeconomic factors affecting the tax burden are considered, including the level of social inequality, inflation and wage dynamics. The choice of currency for unification of calculations is carried out, resulting in the use of the Chinese yuan (CNY) as the base currency. A simulation model that takes into account stochastic income distribution and progressive taxation scales was developed. The simulation results reveal significant differences in the tax systems of the BRICS countries: China and South Africa exhibit more progressive taxation scales, while Russia and India maintain relatively low tax burdens. The paper confirms the effectiveness of progressive rates to reduce the burden on the poor.