Tax Policy and Inclusive Growth

Ruud de Mooij

No 2020/271, IMF Working Papers from International Monetary Fund

Abstract: This paper discusses the theory and practice of tax design to achieve an efficient and equitable outcome, i.e. in support of inclusive growth. It starts with a discussion of the key principles from tax theory to guide practical tax design. Then, it elaborates on more granular tax policy, discussing key choices in the structure of the personal income tax on labor and capital income, taxes on wealth, the corporate income tax, and consumption taxes. The paper concludes by highlighting the political economy considerations of the issues with concrete recommedtions as to how to implement tax reform.

Keywords: tax policy; inclusive growth; inequality; poverty; income distribution; WP; economic rent; personal income; tax liability; cost of capital; external cost; public finance; rate of return; low income; take-home pay; Income; Capital income tax; Income and capital gains taxes; Corporate income tax; Income tax systems; Europe; Global (search for similar items in EconPapers)
Pages: 38
Date: 2020-12-04
New Economics Papers: this item is included in nep-pbe and nep-pub
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Citations: View citations in EconPapers (8)

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