Our piece on the Commitment to Equity project is now on Vox:https://twitter.com/voxdotcom/status/999656272298463232 …
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As Richard Bird said back in 2005 (paraphrasing) Progressive taxation in developing countries is really hard . https://papers.ssrn.com/sol3/papers.cfm?abstract_id=804704&download=yes … I am not sure that the dilemmas that Richard sets out have changed
My take away from @noralustig & cos. work is not that progressive taxation has not been tried, but that even progressive tax systems (combined w insufficient transfers) can make significant numbers of people at the bottom of the income scale worse off.
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e.g. the story from the CEQ Tanzania paper is that the tax system overall is progressive. The VAT is moderately progressive. Only kerosene tax & tobacco tax are regressive. http://www.commitmentoequity.org/wp-content/uploads/2017/05/CEQ-WP36-Fiscal-Incidence-in-Tanzania-3-Jan-16-2016.pdf ….... but still it increases number of people below $1.25 by 20%
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I hope we didn't call Tanzania's tax system regressive, but acknowledge we didn't really discuss one of the core tensions here: even moderately progressive systems in low income countries are likely to be immiserating.
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