Trends and Future Directions in Tax Policy Reform

Tax reform in Latin America during the 1980s emphasized broad-based, low-rate consumption taxes over steeply progressive income and property taxes, primarily to simplify the tax structure and facilitate tax administration. While tax reform need not necessarily raise tax-to-GDP ratios, countries that undertook tax reform experienced a higher revenue gain in terms of GDP relative to those that did not. Tax reform issues during the 1990s will include a minimum income tax, alternative corporate taxes (cash flow tax, assets tax), capturing difficult tax bases (financial intermediation, property), environment taxes, extending withholding as a taxing mechanism, and tax harmonization.Tax reforms;Tax bases;Income taxes;Value added tax;tax reform, taxation, corporate income tax, tax policy, tax structure, personal income tax, tax base, tax revenue, tax rates, tax structures, tax ratio, tax administration, trade taxes, tax harmonization, tax ratios, property tax, property taxation, fiscal documentation, double taxation, tax countries, sales tax, environmental taxes, tax evasion, vat rate, international trade taxes, personal income tax rate, tax systems, property taxes, tax liability, tax system, tax policy reform, tax burden, taxes on domestic, direct taxation, consumption tax, payroll tax, tax purposes, taxation of property, consumption taxes, high tax burden, social security taxes, tax collection, fiscal deficits, taxable profits, tax arbitrage, pollution taxes, fiscal responsibility, direct tax, income tax rates, home country, high tax rates, tax burdens, form of taxation, corporate tax rate, tax avoidance, tax contribution, tax revenues, high-tax countries, marginal tax rates, low-tax countries, tax treaties, corporate taxes, tax reform process, tax surcharges, capital gains tax, corporate income taxes, corporate income tax base, tax liabilities, regional tax, tax policy reforms, public expenditure, progressive tax, fiscal affairs department, tax sales, tax assignment, vat revenue, environmental tax, fiscal federalism, income tax revenues, marginal tax rate, taxable income, uniform tax, tax reform efforts, direct taxes, excise taxes, major tax reform, capital expenditures, payroll taxes, tax incentives, uniform tax rate, individual income taxes, presumptive taxation, level of taxation, excise tax, average tax rate, taxpaying public, tax treatment, fiscal affairs, foreign capital, tax area