Political Economy of Multi-Level Tax Assignments in Latin American Countries: Earmarked Revenue Versus Tax Autonomy
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Summary:
A weakness of decentralization and overall tax reforms in Latin America is the lack of attention to adequate taxation at the subnational government. A reliance on shared taxes with extensive earmarking leads to weak subnational accountability and soft budget constraints. The paper explores the options for expanding subnational taxation in Latin America. A range of subnational tax instruments might be considered, but interactions between new tax assignments and the system of transfers is important from a political economy perspective.
Series:
Working Paper No. 2008/071
Subject:
Personal income tax Property tax Revenue administration Subnational tax Value-added tax
Frequency:
Monthly
English
Publication Date:
March 1, 2008
ISBN/ISSN:
9781451869330/1018-5941
Stock No:
WPIEA2008071
Pages:
27
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