The contribution of behavioral economics to tax reform in the United Kingdom
نویسنده
چکیده
This paper examines the contribution of behavioral economics to tax reform by examining two major reforms in the United Kingdom which may be seen as natural experiments – the reform of local taxation and the introduction of value added tax. The case for both was based strongly on mainstream economic analysis but one was a failure and the other a success. The introduction of the local community charge, or ‘poll tax’ as it became known, was such a failure that not only did it have to be repealed but it was also a factor in the downfall of Mrs. Margaret Thatcher as Prime Minister. The introduction of value added tax took more account of behavioral factors and was successful. The paper concludes that a wider approach based on behavioral as well as mainstream economics may have considerable advantages in developing
منابع مشابه
Public Spending on Health Service and Policy Research in Canada, the United Kingdom, and the United States: A Modest Proposal
Health services and policy research (HSPR) represent a multidisciplinary field which integrates knowledge from health economics, health policy, health technology assessment, epidemiology, political science among other fields, to evaluate decisions in health service delivery. Health service decisions are informed by evidence at the clinical, organizational, and policy level, levels with distinct...
متن کاملModeling of Growth and Welfare Effects of Tax Reform in Iran: A Static Computable General Equilibrium Analysis
F or several decades, the selection of a proper tax base has been among the most serious concerns for the economic policy makers. The computable general equilibrium models analysis provides a comprehensive framework for the investigation of the effects of the adopted policies on the economy of a country. In the present study, using a static computable general equilibrium, the effects of tax ref...
متن کاملMaking Research Matter; Comment on “Public Spending on Health Service and Policy Research in Canada, the United Kingdom, and the United States: A Modest Proposal”
We offer a UK-based commentary on the recent “Perspective” published in IJHPM by Thakkar and Sullivan. We are sympathetic to the authors’ call for increased funding for health service and policy research (HSPR). However, we point out that increasing that investment – in any of the three countries they compare: Canada, the United States and the United Kingdom– will ipso facto not necessarily lea...
متن کاملA Comparative Study of the Principles of Fair Proceeding in Iran with Tax Litigation patterns in the United States, Britain, France and Germany
One of the most important economic topics in every country is considering tax issues as a way of increasing the government's income through attracting public confidence by observing the principles of proceeding in the tax system of the country which might likely cause a national production boom, increase economic growth rate, reduce unemployment and the fair distribution of wealth. In this rega...
متن کاملEstimating Shadow Economy and Tax Evasion by Considering the Variables of Government Financial Discipline and Behavioral Factors in Iran’s Economy
L ow tax incomes and the large size of the government in Iran lead into budget deficit, which increases the inflation rate. It also causes economic instability and fluctuations in inflation, leading to tax non-compliance and the transfer of people to the informal economy. Therefore, considering the variables of financial discipline and behavioral factors, this research examines the e...
متن کامل