Estimating the Revenue Impacts of Tax Harmonisation

Ayoki, Milton (2017): Estimating the Revenue Impacts of Tax Harmonisation.

Abstract

This paper reviews studies that attempt to measure empirically, revenue gains from tax harmonisation. Three groups of studies emerge, those that use cross-country regression, partial equilibrium analysis, and applied general-equilibrium (CGE) models—they all suggest (explicitly or implicitly) that the relationship between tax rates and tax revenues is ambiguous. In some special circumstances, there are gains that can be realized from tax harmonization, but those gains are usually modest in scope. Tax harmonization tends to disadvantage certain countries especially when the participating countries are different in size, and disparities in their initial tax structures are wide.

• Item Type: MPRA Paper
• Language: English
• Keywords: Policy Coordination, Tax Harmonisation, Tax Revenue, Computable General Equilibrium Models, Social Accounting Matrix.
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C18 - Methodological Issues: General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy Formulation and Implementation; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E16 - Social Accounting Matrix; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F15 - Economic Integration; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies; H - Public Economics > H8 - Miscellaneous Issues > H87 - International Fiscal Issues ; International Public Goods

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