search query: @indexterm TAX POLICY / total: 92
reference: 48 / 92
| Author: | Palda, F. |
| Title: | Fiscal churning and political efficiency |
| Journal: | Kyklos
1997 : VOL. 50:2, p. 189-206 |
| Index terms: | TAX POLICY PUBLIC GOODS MEASUREMENT INCOME DISTRIBUTION CANADA OECD |
| Language: | eng |
| Abstract: | The paper proposes a measure of political efficiency. The measure looks at who pays taxes and who receives government transfers. Almost every citizen pays tax and receives transfers. This is known af 'fiscal churning'. The present paper speculates that citizens would be no worse off, and possibly much better off if taxes and transfers were simultaneously lowered so that the citizen's net fiscal position did not change. The proposed measure of political efficiency captures the degree to which such a lowering could be accomplished. Using methods of tax and spending incidence, the case of Canada in 1990 is studied, and it is found that between 15.2% and 49.2% of government spending may be churned. |
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