19 min

How equitable are taxes in LMICs‪?‬ VoxDev Development Economics

    • Sciences sociales

Inequality is high in many LMICs, and progressive taxation is a policy tool that would reduce it. But would a personal income tax or a consumption tax redistribute in the same way as in a high-income country? Lucie Gadenne of Queen Mary University of London and the IFS tells Tim Phillips that one of these taxes may be less progressive, and one may be more progressive, than we expect.

Inequality is high in many LMICs, and progressive taxation is a policy tool that would reduce it. But would a personal income tax or a consumption tax redistribute in the same way as in a high-income country? Lucie Gadenne of Queen Mary University of London and the IFS tells Tim Phillips that one of these taxes may be less progressive, and one may be more progressive, than we expect.

19 min