The role of direct taxes in fiscal decentralization

Luca Gandullia ()

No 6/2012, DEP - series of economic working papers from University of Genoa, Research Doctorate in Public Economics

Abstract: The aim of the paper is to review the economic theory of tax assignment across levels of government and the international experience in the use of direct taxes – personal income taxes and taxes on profits and on business value added – for fiscal decentralization. We highlight that as for other options of local taxation there are merits but also drawbacks in the use of direct taxes as a source of financing for sub-central governments and so the final choice about their use or not is a matter of judgment and depends on the political priority to be attached to different objectives, such as efficiency, equity, accountability, tax competition, administrative feasibility and revenue adequacy.

Keywords: direct taxes; fiscal decentralization; tax assignment (search for similar items in EconPapers)
JEL-codes: H24 H25 H71 H73 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-acc, nep-geo, nep-pbe, nep-pol, nep-pub and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.dep.unige.it/RePEc/gea/wpaper/dwpo-6-sep2012.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.dep.unige.it:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gea:wpaper:6/2012

Access Statistics for this paper

More papers in DEP - series of economic working papers from University of Genoa, Research Doctorate in Public Economics University of Genoa c/o Marcello Montefiori via Vivaldi, 5 16126 Genova ITALY. Contact information at EDIRC.
Bibliographic data for series maintained by Marcello Montefiori ().