Tax Policy and Inclusive Growth

Abdel-Kader, Khaled; Mooij, Ruud de

doi:10.5089/9781513561561.001

Cited by 20 publications

(6 citation statements)

References 25 publications

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“…In such a "second-best" world, progressive taxes can make a positive contribution to social welfare if they reduce distortions associated with missing and failing markets (yet, they could also exacerbate these distortions). Indeed, efficiency improvements have been emphasized in case of imperfections in labor, capital, and insurance markets (Abdelkader and De Mooij 2020).…”

Section: Trade-off Between Equity and Efficiencymentioning

confidence: 99%

Tax Policy

Abdel-Khader¹,

Mooij²

2021

How to Achieve Inclusive Growth

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This chapter discusses the theory and practice of tax design to achieve an efficient and equitable outcome in support of inclusive growth. It starts with a discussion of the key principles from tax theory to guide practical tax design. Then, it elaborates on the practice of tax policy making, thereby discussing key choices in the structure of the personal income tax on labor, capital income, wealth, the corporate income tax, and consumption taxes. The chapter concludes by highlighting the political economy considerations of the issues with concrete recommendations as to how to implement tax reform.

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Section: Trade-off Between Equity and Efficiencymentioning

confidence: 99%

Tax Policy

Abdel-Khader¹,

Mooij²

2021

How to Achieve Inclusive Growth

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“…According to the findings of several IMF reports (Gonzalez-Garcia et al. , 2013; Abdel-Kader and Mooij, 2020), a significant negative tax multiplier would adversely affect economic growth in the future by, ultimately, eroding the tax base from which all taxes are collected.…”

Section: Budgetary Multipliersmentioning

confidence: 99%

“…However, the tax multiplier, which is defined by Chinn (2013) as the ratio of the change in output to a change in government taxes, approximates that calculated by Ghazi's (2018), despite his using an alternative approach (recursive estimation) with a multiplier that varies from 0 in the first quarter (subsequent to a decline in revenue of 1 MAD) to À0.39 in the fifth year. According to the findings of several IMF reports (Gonzalez-Garcia et al, 2013;Abdel-Kader and Mooij, 2020), a significant negative tax multiplier would adversely affect economic growth in the future by, ultimately, eroding the tax base from which all taxes are collected.…”

Section: Budgetary Multipliersmentioning

confidence: 99%

Macroeconomic impacts of fiscal shocks on the Moroccan economy: a disaggregated SVAR analysis

Alami

Idrissi

Bousselhami

et al. 2021

JBSED

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PurposeThe present paper aims to evaluate the structural impact of exogenously induced fiscal shocks on the Moroccan economy. This entails an analysis of the effect on the GDP of COVID-19-induced fiscal shocks manifesting in terms of budgetary revenues and expenditures. A key aspect of this analysis addresses the size of the tax and fiscal multipliers.Design/methodology/approachThe study examines the structural relationship between five variables during the period between Q1 2009 and Q2 2020 using an SVAR approach that allows for a dynamic interaction between ordinary expenditures and revenues on a quarterly basis.FindingsPositive structural shocks on public spending are likely to negatively impact economic growth. Negative economic growth, in turn, will damage price levels and interest rates, mainly over the long term. However, public-revenue-multiplier-associated shocks exceed these price- and interest-rate multiplier-associated shocks. Indeed, a structural shock to ordinary revenues can have a positive but insignificant impact on the GDP stemming from the ensuing decrease in the government budget deficit that proceeds from the increase in government revenues.Originality/valueThis is one of the first studies in the Moroccan context to assess the impact of the current worldwide pandemic on public finances. In addition, this study highlights the importance of boosting economic recovery through public spending.

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“…Similarly, in ancient India and China, land taxation was a primary source of revenue for the ruling dynasties, supporting the maintenance of large armies and the construction of monumental structures. It is more importantly to mention that, international evidence suggests that income and wealth inequality may have a tendency of self-reinforcement if unchecked by public policies 1 .…”

Section: Introductionmentioning

confidence: 99%

Taxation in the Indo-Pacific Region: From Antiquity to Modern GST Regime

2024

European Economic Letters

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Taxation has been an integral part of the socio-economic fabric of the Indo-Pacific region for millennia, serving as a means to fund governance, finance infrastructure, and redistribute wealth. This paper traces the evolution of taxation practices in the Indo-Pacific from ancient times to the contemporary era, focusing on the transition to the modern Goods and Services Tax (GST) regime. Through a historical analysis and a critical examination of taxation models, this paper explores the diverse approaches to the process of taxation employed by various societies and governments across the region during the successive regimes. Additionally, it investigates the implementation, impact, and challenges of the GST system in Indo-Pacific countries. By way of investigating the historical trajectory and contemporary dynamics of taxation, this study aims to provide insights into the role of taxation as a significant tool in shaping the economic landscape of the Indo-Pacific region. This paper will be helpful for policymakers and practitioners who can make informed decisions towards fostering sustainable development and equitable growth in the Indo-Pacific.

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Tax Policy and Inclusive Growth

Cited by 20 publications

References 25 publications

Tax Policy

Tax Policy

Macroeconomic impacts of fiscal shocks on the Moroccan economy: a disaggregated SVAR analysis

Taxation in the Indo-Pacific Region: From Antiquity to Modern GST Regime

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