Antón, Arturo; Leal, Julio - Inter-American Development Bank - 2013
This paper analyzes the aggregate effects of a revenue neutral fiscal-cum-social policy reform in a typical developing … payroll tax to replace it with a generalized VAT (i.e., a reconfiguration of taxes). The authors find that this reform … reform could affect some groups in the population, given the regressive nature of VAT and heterogeneity in the valuation of …