Tax expenditure and the treatment of tax incentives for investment
Governments use tax expenditures to boost investment, innovation and employment. However, these schemes are largely opaque, costly and often ineffective in reaching their stated goals. They also frequently trigger unwanted side effects. In order to improve the performance of these tools, the authors...
| Main Authors: | , , , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
De Gruyter
2019-12-01
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| Series: | Economics: Journal Articles |
| Subjects: | |
| Online Access: | https://doi.org/10.5018/economics-ejournal.ja.2019-12 |
| _version_ | 1818245238173466624 |
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| author | Redonda Agustin de Sarralde Santiago Diaz Hallerberg Mark Johnson Lise Melamud Ariel Rozemberg Ricardo Schwab Jakob von Haldenwang Christian |
| author_facet | Redonda Agustin de Sarralde Santiago Diaz Hallerberg Mark Johnson Lise Melamud Ariel Rozemberg Ricardo Schwab Jakob von Haldenwang Christian |
| author_sort | Redonda Agustin |
| collection | DOAJ |
| description | Governments use tax expenditures to boost investment, innovation and employment. However, these schemes are largely opaque, costly and often ineffective in reaching their stated goals. They also frequently trigger unwanted side effects. In order to improve the performance of these tools, the authors present three concrete policy proposals: First, governments should increase transparency on tax benefits. G20 members should take the lead on this with frequent and comprehensive tax expenditure reports. Second, G20 governments should improve the design of tax incentives with the aim of minimizing the generation of windfall profits and negative spillover effects within and across (in particular, on poorer) countries. Third, governments should phase out tax expenditures that are environmentally harmful, including tax incentives for fossil fuels and other schemes that promote an unsustainable use of natural resources. |
| first_indexed | 2024-12-12T14:29:44Z |
| format | Article |
| id | doaj.art-e0a4c7249c97434dab473d0d93766d66 |
| institution | Directory Open Access Journal |
| issn | 1864-6042 |
| language | English |
| last_indexed | 2024-12-12T14:29:44Z |
| publishDate | 2019-12-01 |
| publisher | De Gruyter |
| record_format | Article |
| series | Economics: Journal Articles |
| spelling | doaj.art-e0a4c7249c97434dab473d0d93766d662022-12-22T00:21:34ZengDe GruyterEconomics: Journal Articles1864-60422019-12-0113110.5018/economics-ejournal.ja.2019-12Tax expenditure and the treatment of tax incentives for investmentRedonda Agustin0de Sarralde Santiago Diaz1Hallerberg Mark2Johnson Lise3Melamud Ariel4Rozemberg Ricardo5Schwab Jakob6von Haldenwang Christian7CEP, Council on Economic Policies, Zurich, SwitzerlandCIAT, Inter-American Center of Tax AdministrationHertie School of GovernanceCCSI, Columbia Center on Sustainable InvestmentASAP, Asociación Argentina de Presupuesto y Administración Financiera PúblicaiDeAS, Centro de Investigación sobre Desarrollo Económico de América del SurD:\To_Client\Upload_Sciendo 2020 10 26\DIE, German Development InstituteGovernments use tax expenditures to boost investment, innovation and employment. However, these schemes are largely opaque, costly and often ineffective in reaching their stated goals. They also frequently trigger unwanted side effects. In order to improve the performance of these tools, the authors present three concrete policy proposals: First, governments should increase transparency on tax benefits. G20 members should take the lead on this with frequent and comprehensive tax expenditure reports. Second, G20 governments should improve the design of tax incentives with the aim of minimizing the generation of windfall profits and negative spillover effects within and across (in particular, on poorer) countries. Third, governments should phase out tax expenditures that are environmentally harmful, including tax incentives for fossil fuels and other schemes that promote an unsustainable use of natural resources.https://doi.org/10.5018/economics-ejournal.ja.2019-12tax expenditurestax incentivestax competitioninvestmentfossil fuel subsidiesg20h2h87n4 |
| spellingShingle | Redonda Agustin de Sarralde Santiago Diaz Hallerberg Mark Johnson Lise Melamud Ariel Rozemberg Ricardo Schwab Jakob von Haldenwang Christian Tax expenditure and the treatment of tax incentives for investment Economics: Journal Articles tax expenditures tax incentives tax competition investment fossil fuel subsidies g20 h2 h87 n4 |
| title | Tax expenditure and the treatment of tax incentives for investment |
| title_full | Tax expenditure and the treatment of tax incentives for investment |
| title_fullStr | Tax expenditure and the treatment of tax incentives for investment |
| title_full_unstemmed | Tax expenditure and the treatment of tax incentives for investment |
| title_short | Tax expenditure and the treatment of tax incentives for investment |
| title_sort | tax expenditure and the treatment of tax incentives for investment |
| topic | tax expenditures tax incentives tax competition investment fossil fuel subsidies g20 h2 h87 n4 |
| url | https://doi.org/10.5018/economics-ejournal.ja.2019-12 |
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