Tax Policy for Economic Recovery and Growth

Christopher Heady (), Åsa Johansson, Jens Arnold (), Bert Brys and Laura Vartia

Studies in Economics from School of Economics, University of Kent

Abstract: This paper identifies tax policy that both speeds recovery from the current economic crisis and contributes to long-run growth. This is a challenge because short-term recovery requires increases in demand while long-term growth requires increases in supply. As short-term tax concessions can be hard to reverse, this implies that policies to alleviate the crisis could compromise long-run growth. The analysis makes use of recent evidence on the impact of tax structure on economic growth to identify which growth-enhancing tax changes can also aid recovery, taking account of the need to protect those on low incomes.

Keywords: Taxation; Tax Design; Tax Policy; Economic growth; Economic recovery (search for similar items in EconPapers)
JEL-codes: H20 H30 O40 (search for similar items in EconPapers)
Date: 2009-12
New Economics Papers: this item is included in nep-fdg, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.kent.ac.uk/economics/repec/0925.pdf (application/pdf)

Related works:
Journal Article: Tax Policy for Economic Recovery and Growth (2011)
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:ukc:ukcedp:0925

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Studies in Economics from School of Economics, University of Kent School of Economics, University of Kent, Canterbury, Kent, CT2 7FS.
Bibliographic data for series maintained by Dr Anirban Mitra ().