According to a new study by the World Bank, simply tax codes result in less corruption (who would have guessed?). The authors state: This paper seeks to find empirical evidence of a link between tax simplification and corruption in tax administration. …The study includes 104 countries from different income groups and regions of the world. The time period is 2002–12. The empirical findings support the existence of a significant link between the measure of tax corruption and tax simplicity, so a less complex tax system is shown to be associated with lower corruption in tax administration. It is predicted that the combined effect of a 10 percent reduction in both the number of payments and the time to comply with tax requirements can lower tax corruption by 9.64 percent….The positive link between tax simplicity and lower tax corruption has useful policy implications. This provides more evidence in favor of a flat tax or national consumption tax in replacement of the current tax code for the U.S (which is incredibly complex). Source: www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/07/30/000158349_20140730100458/Rendered/PDF/WPS6988.pdf
Posted on: Fri, 15 Aug 2014 22:37:07 +0000
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