and Venezuela. We find that, for a given tax rate, revenue declines over time. Therefore, in order to meet a fixed revenue … target in real terms, the tax rate needs to be raised repeatedly. However, we also find that successive increases in the tax … rate erode the tax base by more than they raise revenue yield and that the higher the increase in the tax rate, the more …

The Japanese tax system applies relatively low marginal tax rates on most economic activities which, in combination … with moderate tax elasticities of the bases, indicate that the overall distortion from the tax system (the excess burden …) is probably modest compared with other OECD countries. Recent sizeable reductions in statutory marginal tax rates in both …