Direct versus Indirect Taxation: Trends, Theory and Economic Significance

Jorge Martinez-Vazquez (), Violeta Vulovic () and Yongzheng Liu

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: The choice of the direct-indirect tax mix also is likely to have, as we review below, important consequences in other dimensions of the economy including macroeconomic stability, disparities in income distribution, and foreign direct investment flows. All those, including economic growth, will be revisited in this paper. There are several other potential effects of the choice of tax mix, including the impact on risk taking and entrepreneurship or taxpayers’ moral and voluntary tax compliance. As Atkinson (1977) points out, supposedly taxpayers may show preference for indirect taxation on the grounds that it offers them choice and some politicians may have similar preferences because indirect taxes may be perceived by the public as being less visible. None of these other possible effects will be explored further in this paper.

Pages: 63 pages
Date: 2010-05-01
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
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Citations: View citations in EconPapers (21)

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http://icepp.gsu.edu/files/2015/03/ispwp1014.pdf (application/pdf)

Related works:
Chapter: Direct versus Indirect Taxation: Trends, Theory, and Economic Significance (2011)
Working Paper: Direct versus Indirect Taxation: Trends, Theory and Economic Significance (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper1014

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