Front Matter Page
Fiscal Affairs Department
Contents
I. Introduction
II. When are the Poor Best Served by a Reduced Rate?
III. The Anatomy of Cascading
IV. Concluding
Tables
1. VATs with a Single Rate at Time of Introduction
2. The Deadweight Loss from Input Taxation—Illustrative Calculations
3. Effective Tax Rates with Cascading—Illustrative Calculations
4. Deadweight Loss when Input Distortion Arises at Two Stages
Figures
1. Distributional Impact of Zero-rating in Mexico
2. Removing Zero-rating in the U.K., With and Without Compensation
3. India: Distribution of Benefits of Curative Health Care
4. The Deadweight Loss from Input Taxation
Appendices
A. Derivation of Equation (1)
B. Derivation of the Effective Tax Rate Te
C. Deadweight Loss with Substitution at Two Stages
References