posted on 2017-06-08, 01:11authored byPillarisetti, J. Ram
Tax reform constitutes one of the core areas of recent economic reform programs in the developing countries. Utilizing new tax burden indexes, this paper argues that a flat or zero income tax creates pro-growth initiatives, reduces corruption and the size of informal sectors and generates over all institutional improvements in low income countries. Tax policy should also balance the growth effects from a flat or zero tax with broad-based consumption and innovative ecologically oriented taxes to ensure sustainability.