Comparative Tax Policy

Catalog description

This course is required for ITP fellows. Investigates in detail the design and policy options in the major taxes on consumption and income, comparing these taxes across countries. The impacts of these tax designs on revenues, economic efficiency, administrative and compliance costs and income distributions are considered. The course reviews the principles of taxation, including those used in allocating taxes to the multiple levels of government in the context of decentralization and across states in common markets or federal systems. In the area of consumption taxes, the course focuses in detail on value-added taxes and general goods and service taxes, but turnover and selective sales taxes are also considered. For income taxes, detailed design features covered include the definition of income, capital gains, employment benefits, business expenses, accounting conventions, inflation indexation, tax integration, international tax harmonization, transfer pricing, thin capitalization and tax incentives. For all taxes, issues of the treatment of small businesses and the informal sectors are featured. This course follows Public Policy Studies 770, Public Finance in Developing and Emerging Economies, but can also be taken by students with appropriate backgrounds in public finance or taxation. Instructor consent required.