A new OECD report encourages governments to use tax policy as a tool for boosting growth, while sharing the benefits more evenly within society.
Published as a working paper, which does not necessarily represent the official view of the OECD, Tax design for inclusive economic growth examines the role that tax systems play in promoting ‘inclusive’ growth, against a backdrop of historically high income and wealth inequality.
The paper was discussed at the G20 tax policy symposium held in China during July. ‘Tax policy has a clear role to play in helping achieve strong, sustainable and balanced growth’, said OECD Secretary-General, Angel Gurría. He added: ‘We are confident that the OECD’s latest research on tax design for inclusive growth can become part of a new tax policy contribution to the G20 agenda moving forward.’
The paper groups tax policy design options under four broad categories:
· broadening tax bases and removing tax expenditures that are not well targeted at redistributive goals;
· enhancing the progressivity of tax systems beyond personal income tax and taking into account the overall progressivity of the tax and benefit system;
· taking steps to affect pre-tax behaviours and opportunities, including those that induce individuals to develop and optimally build up and use human capital and skills; and
· enhancing tax policy and administration, notably by bringing workers from informal sectors into the tax network through well designed policies.
A new OECD report encourages governments to use tax policy as a tool for boosting growth, while sharing the benefits more evenly within society.
Published as a working paper, which does not necessarily represent the official view of the OECD, Tax design for inclusive economic growth examines the role that tax systems play in promoting ‘inclusive’ growth, against a backdrop of historically high income and wealth inequality.
The paper was discussed at the G20 tax policy symposium held in China during July. ‘Tax policy has a clear role to play in helping achieve strong, sustainable and balanced growth’, said OECD Secretary-General, Angel Gurría. He added: ‘We are confident that the OECD’s latest research on tax design for inclusive growth can become part of a new tax policy contribution to the G20 agenda moving forward.’
The paper groups tax policy design options under four broad categories:
· broadening tax bases and removing tax expenditures that are not well targeted at redistributive goals;
· enhancing the progressivity of tax systems beyond personal income tax and taking into account the overall progressivity of the tax and benefit system;
· taking steps to affect pre-tax behaviours and opportunities, including those that induce individuals to develop and optimally build up and use human capital and skills; and
· enhancing tax policy and administration, notably by bringing workers from informal sectors into the tax network through well designed policies.
