Can taxes on consumption redistribute in developing countries? Contrary to consensus, we show that taxing consumption … steeply declines with income, so that richer households pay a substantially larger share of their income in taxes. Our …

simple expression for optimal taxes that accommodates consumption externalities within Mirrlees (1971) framework. Using this … expression, I conduct a positive analysis of taxation: assuming that observed taxes are optimal, I derive analytic expressions … consumption externality agents of different income impose to society. Using these expressions, I rationalize income taxes in the …

political approach to reduce income inequality is to raise taxes for the wealthy and redistribute the proceeds to the poor. This … has already occurred.Rents can be seen as implicit commodity taxes, the proceeds of which go to private individuals or … companies rather than to the government; just like explicit commodity taxes, they cause labor and price distortion. Legal rules …

base, limiting the use of differentiated rates, utilization of withholding and presumptive taxes, transparency and …