The Welfare Effects of Indirect Taxes in Australia: Some Alternative Reforms
This paper presents an empirical analysis of the welfare effects of several indirect tax reforms in Australia. The welfare changes are measured in terms of equivalent variations and equivalent incomes, using estimates of the linear expenditure system for each of a range of income groups. The results suggest that the extent of vertical redistribution involved in the current indirect tax structure, and possible reforms to it, are small.
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|Date of creation:||1998|
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