Almost every citizen pays taxes and receives transfers. This is known as 'fiscal churning.' Citizens might be better-off if taxes and transfers were simultaneously lowered so that each citizen's net fiscal position did not change. Fiscal churning is a measure of political efficiency that captures the degree to which such lowering could be accomplished. Taxation and spending incidence analysis for the case of Canada in 1990 reveals that between 15.2 percent and 49.2 percent of government spending may be churned. As Canada lies at the mean of many OECD fiscal indicators, Europe and the United States may wish to take note. Copyright 1997 by WWZ and Helbing & Lichtenhahn Verlag AG
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Article provided by Blackwell Publishing in its journal Kyklos.
Volume (Year): 50 (1997) Issue (Month): 2 () Pages: 189-206 Download reference. The following formats are available: HTML,
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