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Alternative approaches to tax reform

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  • Haibara, Takumi

Abstract

This paper shows that a consumption-neutral tax reform is a promising alternative to a revenue-neutral tax reform when the distortions introduced by tax hikes are very large and when governments seek revenues in the course of tax changes.

Suggested Citation

  • Haibara, Takumi, 2012. "Alternative approaches to tax reform," Economics Letters, Elsevier, vol. 117(2), pages 408-410.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:2:p:408-410
    DOI: 10.1016/j.econlet.2012.06.030
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    References listed on IDEAS

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    1. W. J. Corlett & D. C. Hague, 1953. "Complementarity and the Excess Burden of Taxation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(1), pages 21-30.
    2. Emran, M. Shahe & Stiglitz, Joseph E., 2005. "On selective indirect tax reform in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 599-623, April.
    3. Dixit, Avinash, 1975. "Welfare effects of tax and price changes," Journal of Public Economics, Elsevier, vol. 4(2), pages 103-123, February.
    4. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
    5. Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production II: Tax Rules," American Economic Review, American Economic Association, vol. 61(3), pages 261-278, June.
    6. Feldstein, Martin, 1976. "On the theory of tax reform," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 77-104.
    7. Hatta, Tatsuo, 1986. "Welfare effects of changing commodity tax rates toward uniformity," Journal of Public Economics, Elsevier, vol. 29(1), pages 99-112, February.
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    Citations

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    Cited by:

    1. Nikos Tsakiris & Panos Hatzipanayotou & Michael S. Michael, 2019. "Border tax adjustments and tariff‐tax reforms with consumption pollution," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(6), pages 1107-1125, December.
    2. Michael S. Michael & Panos Hatzipanayotou, 2013. "Cooperative and Non-Cooperative Equilibrium Consumption Taxes in the Presence of Cross-Border Pollution," CESifo Working Paper Series 4501, CESifo.
    3. Haibara Takumi, 2017. "Indirect Tax Reform in Developing Countries: A Consumption-Neutral Approach," Journal of Globalization and Development, De Gruyter, vol. 8(1), pages 1-11, June.
    4. Takumi Haibara, 2023. "Three tax reforms with and without public pollution abatement," Economics Bulletin, AccessEcon, vol. 43(1), pages 574-582.
    5. Takumi Haibara, 2022. "A note on pollution and reforms of domestic and trade taxes toward uniformity," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(1), pages 201-214, February.
    6. Takumi Haibara, 2021. "One for All, All for One? Unilateral Policy Choices Reconsidered," Economics Bulletin, AccessEcon, vol. 41(1), pages 161-166.

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    More about this item

    Keywords

    Consumption-neutral tax reform; Revenue-neutral tax reform; Welfare;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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