Tax Reform in Developing Countries

Thirsk, Wayne R.

doi:10.1596/0-8213-3999-0

Cited by 62 publications

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“…performance are explained by the constraining effect of socio-political patterns that emerged in the past (e.g., Mkandawire, 2010;Thirsk, 1997). Specifically with regard to the performance of the personal income tax, Lieberman (2003) probably offers the most prominent contribution.…”

Section: Empirical Literature On the Determinants Of Tax Compositionmentioning

confidence: 99%

Party System Institutionalization and Reliance on Personal Income Tax in Developing Countries

Schiller¹

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license. Terms of use: Documents inFollowing a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org 2015 1 Abstract * This paper explores the effect of party system institutionalization on the relevance of the personal income tax in the tax composition. Based on a fiscal contractualism approach, it is argued that institutionalized political party systems increase the capacity of political actors to credibly commit to fiscal contracts agreed with wealthy taxpayers. Consequently, in countries characterized by institutionalized political party systems wealthy taxpayers accept paying a bigger share of the tax burden, as reflected in a greater relevance of progressive tax types. The analysis of panel data for more than 90 countries from 1990 to 2010 supports this hypothesis, showing that party system institutionalization has an especially significant and strong positive effect on the relevance of the personal income tax where bureaucratic capacity is low. At high levels of bureaucratic capacity the effect disappears. The findings strongly support the claim that, particularly in developing countries, where bureaucratic capacity tends to be limited, taxation is best understood as a proble...

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Section: Empirical Literature On the Determinants Of Tax Compositionmentioning

confidence: 99%

Party System Institutionalization and Reliance on Personal Income Tax in Developing Countries

Schiller¹

2015

SSRN Journal

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“…The results indicates that democracies tend to tax more and to rely more strongly on more progressive tax types. performance are explained by the constraining effect of socio-political patterns that emerged in the past (e.g., Mkandawire, 2010;Thirsk, 1997). Specifically with regard to the performance of the personal income tax, Lieberman (2003) probably offers the most prominent contribution.…”

Section: Empirical Literature On the Determinants Of Tax Compositionmentioning

confidence: 99%

“…Direct taxes-and especially those considered to have a more 1 Mostly operationalized as tax collection to gross domestic product (GDP) ratios. 2 This literature is mostly based on case studies (e.g., Gillis, 1989;Thirsk, 1997;Lora, 2007). For large N studies on OECD countries, see Basinger and Hallerberg (2004).…”

Section: Introductionmentioning

confidence: 99%

Party System Institutionalization and Reliance on Personal Income Tax in Developing Countries

von Schiller

2015

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This paper explores the effect of party system institutionalization on the relevance of the personal income tax in the tax composition. Based on a fiscal contractualism approach, it is argued that institutionalized political party systems increase the capacity of political actors to credibly commit to fiscal contracts agreed with wealthy taxpayers. Consequently, in countries characterized by institutionalized political party systems wealthy taxpayers accept paying a bigger share of the tax burden, as reflected in a greater relevance of progressive tax types. The analysis of panel data for more than 90 countries from 1990 to 2010 supports this hypothesis, showing that party system institutionalization has an especially significant and strong positive effect on the relevance of the personal income tax where bureaucratic capacity is low. At high levels of bureaucratic capacity the effect disappears. The findings strongly support the claim that, particularly in developing countries, where bureaucratic capacity tends to be limited, taxation is best understood as a problem of credible commitment.

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Party System Institutionalization and Reliance on Personal Income Taxation in Developing Countries

Schiller

2018

J of Intl Development

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This paper explores the effect of party system institutionalization on the relevance of personal income taxation in the tax composition. Based on a fiscal contractualism approach, I argue that institutionalized political party systems increase the capacity of political actors to commit credibly to fiscal contracts agreed with wealthy taxpayers. Consequently, especially where bureaucratic capacity is low, institutionalized political party systems should have a strong effect on the share of the tax burden that wealthy taxpayers are willing to accept. The analysis of panel data between 1990 and 2010 for a sample of over 90 countries supports this hypothesis. Party system institutionalization has a significant and strong positive effect on the relevance of the personal income taxation where bureaucratic capacity is low. At high levels of bureaucratic capacity, the effect disappears. The findings strongly support the claim that, particularly in developing countries, where bureaucratic capacity tends to be limited, taxation is best understood as a problem of credible commitment.

show abstract

Tax Reform in Developing Countries

Cited by 62 publications

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Party System Institutionalization and Reliance on Personal Income Tax in Developing Countries

Party System Institutionalization and Reliance on Personal Income Tax in Developing Countries

Party System Institutionalization and Reliance on Personal Income Tax in Developing Countries

Party System Institutionalization and Reliance on Personal Income Taxation in Developing Countries

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