## Tax Policy and Inclusive Growth

_IMF Working Papers, December 4, 2020_

## Source details

**Canonical URL:** [Tax Policy and Inclusive Growth](https://www.imf.org/en/publications/wp/issues/2020/12/04/tax-policy-and-inclusive-growth-49902)

## Other formats

- [Markdown version](/en/publications/wp/issues/2020/12/04/tax-policy-and-inclusive-growth-49902/index.md)
- [Structured JSON version](/en/publications/wp/issues/2020/12/04/tax-policy-and-inclusive-growth-49902/index.json)
- [Bundle manifest](/en/publications/wp/issues/2020/12/04/tax-policy-and-inclusive-growth-49902/bundle-manifest.json)

## Bibliographic details
- Authors: Ruud A. de Mooij
- Published: December 4, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513561561.001

---

### Overview and Purpose
- Discusses the theory and practice of tax design to achieve an efficient and equitable outcome, i.e. in support of inclusive growth.
- Starts with a discussion of the key principles from tax theory to guide practical tax design.
- Elaborates on more granular tax policy, discussing key choices in:
  - the structure of the personal income tax on labor and capital income,
  - taxes on wealth,
  - the corporate income tax,
  - and consumption taxes.
- Concludes by highlighting the political economy considerations of the issues with concrete recommedtions as to how to implement tax reform.

### Major Themes and Analytical Focus
- Key principles from tax theory are presented as guidance for practical tax design.
- Granular policy analysis covers:
  - personal income tax structure for labor and capital income,
  - taxes on wealth,
  - corporate income tax design,
  - consumption taxes.
- Political economy considerations are emphasized in the implementation of tax reform.

### Findings and Policy Implications (as described)
- Tax design should balance efficiency and equity to support inclusive growth.
- Practical design choices span both income and consumption tax instruments as well as wealth and corporate taxation.
- Implementation requires attention to political economy factors and concrete recommedtions for reform execution.

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2020/english/wpiea2020271-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2020/english/wpiea2020271-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2020/12/04/tax-policy-and-inclusive-growth-49902_