TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Thursday, March 22, 2007

Keen Presents The Flat Tax(es): Principles and Evidence Today at UCLA

Ucla_4Keen_2Michael Keen (International Monetary Fund) presents The Flat Tax(es): Principles and Evidence (with Yitae Kim & Ricardo Varsano) at UCLA today as part of its Tax Policy and Public Finance Workshop Series, moderated by Kirk Stark & Eric Zolt.  Here is the abstract:

One of the most striking tax developments in recent years, and one that continues to attract considerable attention, is the adoption by several countries of a form of “flat tax.” Discussion of these quite radical reforms has been marked, however, more by assertion and rhetoric than by analysis and evidence. This paper reviews experience with the flat tax, seeking to redress the balance. It stresses that the flat taxes that have been adopted differ fundamentally, and that empirical evidence on their effects is very limited. This precludes simple generalization, but several lessons emerge: there is no sign of Laffer-type behavioral responses generating revenue increases from the tax cut elements of these reforms; their impact on compliance is theoretically ambiguous, but there is evidence for Russia that compliance did improve; the distributional effects of the flat taxes are not unambiguously regressive, and in some cases they may have increased progressivity, including through the impact on compliance; adoption of the flat tax has not resolved common challenges in taxing capital income; and it may have strengthened, not weakened, the automatic stabilizers. Looking forward, the question is not so much whether more countries will adopt a flat tax as whether those that have will move away from it.

http://taxprof.typepad.com/taxprof_blog/2007/03/keen_presents_t.html

Colloquia | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341c4eab53ef00d83542675953ef

Listed below are links to weblogs that reference Keen Presents The Flat Tax(es): Principles and Evidence Today at UCLA:

Comments