Our piece on the Commitment to Equity project is now on Vox:https://twitter.com/voxdotcom/status/999656272298463232 …
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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.
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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Could Tanzania pledge that its fiscal system won't increase poverty using the national line? And if so, what tax handles would it turn to? (Lacking the machinery for a broad transfer system at present.) Latter is where I'm a bit uncertain.
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