Cross-Country Research On Tax Policy And Inequality: Comparative Study Of Indonesia, South Africa And Brazil

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CITA | 23 JULI 2015

Indonesia, South Africa and Brazil are developing countries with strong economic

performances in comparison with their peers, although this is accompanied by severe inequalities. Inequality can create a number of problems, including unsustainable economic growth. Taxation is an effective policy instrument that can be used by governments to tackle the ever widening gap between rich and poor: taxes can be both a source of sustainable funds for public spending and a tool for income redistribution. At the same time, the quantity of tax revenue (the amount raised) and its quality (progressiveness, optimization of tax expenditures) can provide benchmarks for assessing a country’s tax system in terms of economic inequalities.

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