Evaluación del Sistema Tributario Chileno y Propuesta de Reforma
This paper proposes the substitution of the current income tax system for a simplified consumption tax (SCT),consisting of a cash-flow tax (CST) with a rate of 26%, and a tax on wages with a maximum rate also of 26%. Preliminary estimates indicate that these taxes would maintain tax revenues constant while, at the same time, simplify the tax system and lower administrative and enforcement costs. Moreover, distortions would be diminished as an income tax would be replaced by a consumption tax. Vertical equality would not be significantly changed, but horizontal equality would improve. The paper also considers two alternatives to the CST: the hybrid tax and the tax on dividends, concluding that the second is the less attractive option.
|Date of creation:||Dec 1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Hall & Alvin Rabushka, 1985. "The Route to a Progressive Flat Tax," Cato Journal, Cato Journal, Cato Institute, vol. 5(2), pages 465-480, Fall.
- Stokey, Nancy L & Rebelo, Sergio, 1995.
"Growth Effects of Flat-Rate Taxes,"
Journal of Political Economy,
University of Chicago Press, vol. 103(3), pages 519-50, June.
- Eduardo M.R.A. Engel & Alexander Galetovic & Claudio E. Raddatz, 1998.
"Taxes and Income Distribution in Chile: Some Unpleasant Redistributive Arithmetic,"
NBER Working Papers
6828, National Bureau of Economic Research, Inc.
- Engel, Eduardo M. R. A. & Galetovic, Alexander & Raddatz, Claudio E., 1999. "Taxes and income distribution in Chile: some unpleasant redistributive arithmetic," Journal of Development Economics, Elsevier, vol. 59(1), pages 155-192, June.
- Eduardo Engel & Alexander Galetovic & Claudio Raddatz, 1998. "Taxes and Income Distribution in Chile: Some Unpleasant Redistributive Arithmetic," Documentos de Trabajo 41, Centro de Economía Aplicada, Universidad de Chile.
- Mintz, Jack M. & Seade, Jesus, 1989.
"Cash flow or income? : the choice of base for company taxation,"
Policy Research Working Paper Series
177, The World Bank.
- Mintz, Jack M & Seade, Jesus, 1991. "Cash Flow or Income? The Choice of Base for Company Taxation," World Bank Research Observer, World Bank Group, vol. 6(2), pages 177-90, July.
- William M. Gentry & R. Glenn Hubbard, 1996.
"Distributional Implications of Introducing a Broad-Based Consumption Tax,"
NBER Working Papers
5832, National Bureau of Economic Research, Inc.
- William M. Gentry & R. Glenn Hubbard, 1997. "Distributional Implications of Introducing a Broad-Based Consumption Tax," NBER Chapters, in: Tax Policy and the Economy, Volume 11, pages 1-48 National Bureau of Economic Research, Inc.
- Auerbach, Alan J, 1997. "The Future of Fundamental Tax Reform," American Economic Review, American Economic Association, vol. 87(2), pages 143-46, May.
- Agha, Ali & Haughton, Jonathan, 1996. "Designing VAT Systems: Some Efficiency Considerations," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 303-08, May.
- Don Fullerton & Gilbert E. Metcalf, 1997.
"Environmental Taxes and the Double Dividends Hypothesis: Did You Really Expect Something for Nothing?,"
Discussion Papers Series, Department of Economics, Tufts University
9706, Department of Economics, Tufts University.
- Don Fullerton & Gilbert E. Metcalf, 1997. "Environmental Taxes and the Double-Dividend Hypothesis: Did You Really Expect Something for Nothing?," NBER Working Papers 6199, National Bureau of Economic Research, Inc.
- Vito Tanzi & Parthasarathi Shome, 1993. "A Primer on Tax Evasion," IMF Staff Papers, Palgrave Macmillan, vol. 40(4), pages 807-828, December.
- Joel Slemrod & Shlomo Yitzhaki, 1996. "The Costs of Taxation and the Marginal Efficiency Cost of Funds," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 172-198, March.
- Vito Tanzi & Parthasrathi Shome, 1993. "A Primeron Tax Evasion," IMF Working Papers 93/21, International Monetary Fund.
- Martin Feldstein, 1999.
"Tax Avoidance And The Deadweight Loss Of The Income Tax,"
The Review of Economics and Statistics,
MIT Press, vol. 81(4), pages 674-680, November.
- Martin Feldstein, 1995. "Tax Avoidance and the Deadweight Loss of the Income Tax," NBER Working Papers 5055, National Bureau of Economic Research, Inc.
- Engen, Eric M. & Gravelle, Jane G. & Smetters, Kent, 1997. "Dynamic Tax Models: Why They Do the Things They Do," National Tax Journal, National Tax Association, vol. 50(3), pages 657-82, September.
- Pecorino, Paul, 1993. "Tax structure and growth in a model with human capital," Journal of Public Economics, Elsevier, vol. 52(2), pages 251-271, September.
- Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-73, June.
When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.