Political Costs of Tax Based Consolidations

This book PDF is perfect for those who love Business & Economics genre, written by Chuling Chen and published by International Monetary Fund which was released on 27 December 2019 with total hardcover pages 31. You could read this book directly on your devices with pdf, epub and kindle format, check detail and related Political Costs of Tax Based Consolidations books below.

Political Costs of Tax Based Consolidations
Political Costs of Tax Based Consolidations
Author : Chuling Chen
File Size : 49,9 Mb
Publisher : International Monetary Fund
Language : English
Release Date : 27 December 2019
ISBN : 9781513521534
Pages : 31 pages
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Political Costs of Tax Based Consolidations by Chuling Chen Book PDF Summary

This paper studies the impact of tax-based consolidations on reelection outcomes. Using a granular database of tax-based consolidations for a panel of 10 OECD countries over the last 40 years, we find that tax reforms are politically costly but some reforms are costlier than others. Measures aimed primarily at reducing existing deficits and debt are costlier than tax consolidation policies for improving long-term growth prospects. Electoral costs are particularly high for broad-based indirect tax and corporate tax reforms. Voters tend to penalize governments less if tax consolidations are announced early in the government’s term or if the government has a strong political mandate. Favorable economic conditions increase public support for tax-based consolidations. Personal income tax reforms are electorally salient if the reforms are frontloaded, announced during recessions, and in less progressive tax systems.

Political Costs of Tax Based Consolidations

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This paper studies the impact of tax-based consolidations on reelection outcomes. Using a granular database of tax-based consolidations for a panel of 10 OECD countries over the last 40 years, we find that tax reforms are politically costly but some reforms are costlier than others. Measures aimed primarily at reducing existing deficits

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