Rodríguez, Raúl Alberto Ponce - In: Ensayos Revista de Economia XXVIII (2009) 2, pp. 65-94
In a model of a representative democracy, we incorporate into the analysis of tax design the constitutional provision that allows voters to propose tax initiatives. In this paper, we present a theory of tax substitution as the rationale for a tax rate limit (TRL) initiative. In our model the tax...