Template-type: ReDIF-Paper 1.0
Author-Name: Richard Bird
Author-Email:rbird@rotman.utoronto.ca
Author-Homepage:
Author-Workplace-Name: University of Toronto
Title: Tax Challenges Facing Developing Countries 
Abstract:Taxes matter. We all know we need them to pay for public services. But most of us complain about them -- exercise our "voice" -- 
and often try to dodge them -- to "exit" -- when we can. Those who design and implement tax systems, like those who try to escape them, 
for the most part consider themselves to be eminently ‘practical’ people responding to the world around them as they see it. 
As John Maynard Keynes (1936, 384-85) once said, however, “practical men, who believe themselves to be quite free from any intellectual influences, 
are usually the slaves of some defunct economist…..soon or late, it is ideas, not vested interests, which are dangerous for good or evil.” 
While true to some extent, at least when it comes to taxes this dictum both unduly flatters economists and puts too little weight on interests 
and other factors. Tax policy everywhere is shaped not only by ideas and vested interests but also by changing economic conditions, 
administrative constraints and technological possibilities, and, especially, the political institutions within which these factors are at play.
Keywords:value-added tax, tax system, exit, voices
Length: 38 pages
Creation-Date: 2008-03-01
File-URL:http://icepp.gsu.edu/files/2015/03/ispwp0802.pdf
File-Format:application/pdf
Handle: RePEc:ays:ispwps:paper0802