Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191942
Authors: 
Redonda, Agustin
de Sarralde, Santiago Diaz
Hallerberg, Mark
Johnson, Lise
Melamud, Ariel
Rozemberg, Ricardo
Schwab, Jakob
von Haldenwang, Christian
Year of Publication: 
2019
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [ISSN:] 1864-6042 [Volume:] 13 [Year:] 2019 [Issue:] 2019-12 [Pages:] 1-11
Abstract: 
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.
Subjects: 
tax expenditures
tax incentives
tax competition
investment
fossil fuel subsidies
G20
JEL: 
H2
H87
N4
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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