Tax structures in developing countries: Many puzzles and a possible explanation |
| |
Authors: | Roger Gordon Wei Li |
| |
Affiliation: | aUCSD Department of Economics, 9500 Gilman Dr., Dept. 0508 La Jolla, CA92093-0508, United States;bGraduate School of Business, University of Virginia, Post Office Box 6550, Charlottesville, VA 22906, United States |
| |
Abstract: | Tax policies seen in developing countries are puzzling on many dimensions, given the sharp contrast between these policies and both those seen in developed countries and those forecast in the optimal tax literature. In this paper, we explore how forecasted policies change if firms can successfully evade taxes by conducting all business in cash, thereby avoiding any use of the financial sector. The forecasted policies are now much closer to those observed. |
| |
Keywords: | Tax policy in developing countries Informal economy Inflation Tariffs Red tape Capital taxes Corruption |
本文献已被 ScienceDirect 等数据库收录! |
|