Fiscal Devaluation and Fiscal Consolidation : The VAT in Troubled Times /

This paper focuses on two core tax design issues that arise in addressing current fiscal challenges. It first explores the idea, prominent in troubled Eurozone countries, of a "fiscal devaluation": shifting from social contributions to the VAT as a way to mimic a nominal devaluation. Empir...

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Hlavní autor: Keen, Michael
Další autoři: Mooij, Ruud A.
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2012.
Edice:IMF Working Papers; Working Paper ; No. 2012/085
On-line přístup:Full text available on IMF
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Shrnutí:This paper focuses on two core tax design issues that arise in addressing current fiscal challenges. It first explores the idea, prominent in troubled Eurozone countries, of a "fiscal devaluation": shifting from social contributions to the VAT as a way to mimic a nominal devaluation. Empirical evidence is presented which suggests that in Eurozone countries this may indeed improve the trade balance in the short-run, though, as theory predicts, the effects eventually disappear. The paper then assesses the wider scope for VAT reform in meeting fiscal consolidation needs, developing and beginning to apply a methodology for finding additional VAT revenue in ways less distortionary and fairer than further raising the standard rate.
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Fyzický popis:1 online resource (48 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students