Tax Challenges Facing Developing Countries

Richard Bird

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: Taxes matter. We all know we need them to pay for public services. But most of us complain about them -- exercise our "voice" -- and often try to dodge them -- to "exit" -- when we can. Those who design and implement tax systems, like those who try to escape them, for the most part consider themselves to be eminently ‘practical’ people responding to the world around them as they see it. As John Maynard Keynes (1936, 384-85) once said, however, “practical men, who believe themselves to be quite free from any intellectual influences, are usually the slaves of some defunct economist…..soon or late, it is ideas, not vested interests, which are dangerous for good or evil.” While true to some extent, at least when it comes to taxes this dictum both unduly flatters economists and puts too little weight on interests and other factors. Tax policy everywhere is shaped not only by ideas and vested interests but also by changing economic conditions, administrative constraints and technological possibilities, and, especially, the political institutions within which these factors are at play.

Keywords: value-added tax; tax system; exit; voices (search for similar items in EconPapers)
Pages: 38 pages
Date: 2008-03-01
New Economics Papers: this item is included in nep-dev and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Related works:
Working Paper: Tax Challenges Facing Developing Countries (2008)
Working Paper: Tax challenges facing developing countries (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper0802

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