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Tax Systems Under Fiscal Adjustment :, A Dynamic CGE Analysis of the Brazilian Tax Reform, Victor Lledo

Abstract
This paper uses a dynamic computable general equilibrium model (CGE) to analyze the macroeconomic and redistributive effects of replacing turnover and financial transaction taxes in Brazil by a consumption tax. In order to approximate Brazil's compliance with its fiscal adjustment targets, the proposed reform is subject to a non increasing path for the level of public debt. Despite an increase in the average consumption tax rate in the first years after the reform, a majority of individuals experienced an increase in their lifetime welfare. This result rejects the hypothesis that the on-going fiscal adjustment effort carried on by the Brazilian government was an obstacle to the implementation of a more efficient tax system
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. FISCAL ADJUSTMENT AND THE BRAZILIAN TAX SYSTEM.""; ""III. The Model""; ""A. Preferences and the Individual Budget Constraint""; ""B. Technology""; ""C. Government""; ""D. Equilibrium and Simulation Methodology""; ""E . Tax Reform Experiment""; ""IV. Model Parameterization and Calibration""; ""V. Simulation Results""; ""A. Macroeconomic Effects""; ""B. Welfare Effects""; ""VI. CONCLUSIONS""; ""APPENDIX I. Equivalence Between Taxes on Corporate Revenues and a Tax on General Income""; ""APPENDIX II. Parameterization and Calibration Details""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (34 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781282447851

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