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The Russian 'flat tax' reform SUMMARY In 2001, Russia dramatically reduced its higher rates of personal income tax (PIT), establishing a single marginal rate at the low level of 13%. In the following year, real revenue from the PIT increased by about 26%. This 'flat tax' experience has attracted much attention (and emulation), making it perhaps the most(More)
  • Thornton Matheson, Victoria Perry, Julian Alworth, Alan Auerbach, Isaias Coelho, Carlo Cottarelli +7 others
  • 2011
In reaction to the recent financial crisis, increased attention has recently been given to financial transaction taxes (FTTs) as a means of (1) raising revenue for a variety of possible purposes and/or (2) helping to curb financial market excesses. This paper reviews existing theory and evidence on the efficacy of an FTT in fulfilling those tasks, on its(More)
Using micro-level data, we examine the effects of Russia's 2001 flat rate income tax reform on consumption, income, and tax evasion. We use the gap between household expenditures and reported earnings as a proxy for tax evasion with data from a household panel for 1998-2004. Utilizing difference-indifference and regression-discontinuity-type approaches, we(More)
Corruption, evasion and the abuse of power — and the possibility thereof — are pervasive features of economic activity. A prominent instance is tax collection. This paper examines the implications of corruptibility and the potential abuse of authority for the effects and optimal design of (potentially non-linear) tax collection schemes. Amongst the findings(More)
The model of Private Provision of (or Voluntary Contributions to) Public Goods is now well established in the public economics literature. It has had applications in a wide variety of settings-including conventional public good provision issues, analysis of intrahousehohold resource allocation, and conceptualizations of community. It has led not only to a(More)
1 The paper has been prepared under the guidance of Carlo Cottarelli. It has benefited from comments and suggestions by many colleagues in the Fund, in particular DISCLAIMER: The views expressed herein are those of the author(s) and should not be attributed to the IMF, its Executive Board, or its management.
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(More)
This paper reexamines the relationship between aid and domestic tax revenues using a more recent and comprehensive dataset covering 118 countries for the period 1980–2009. Overall, our results support earlier findings of a negative association between net Official Development Assistance (ODA) and domestic tax revenues, but this relationship appears to have(More)
We present a simple model of petroleum exploration and development that can be applied to study the performance of alternative tax systems and identify potential distortions. Although the model is a highly simplified, it incorporates many factors and some of the key tradeoffs that would influence an investor's investment behavior. The model recognizes the(More)