IMF: tax reforms necessary to reduce poverty in Central America
An IMF paper published in May on how fiscal policy fares in improving the underlying income distribution in Central America finds that the distributional effect of taxation is regressive.
The paper surveys a number of existing tax and expenditure studies for the countries in the region and assembles their underlying data in a coherent comparative framework to assess the combined distributional impact of taxation and social spending in Central America.
The paper integrates data from a number of
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