Auditor Counsellor, State Audit Office of Hungary
Published in: Public Finance Quarterly 2013/4 (p. 403-419.)
Summary: The study presents analyses of macroeconomic data related to tax cuts in the Reagan era by different economic schools and their differing conclusions, while also describes findings of panel researches used for testing the mechanism of the tax reduction. After a description of American research findings, it gives an overview of a study conducted with similar methodology into the Russian tax reform, and of issues of the Slovakian tax reform; eventually it describes negative effects of offshore tax havens. The diversity of measurable macroeconomic indicators, and the findings of panel research studies with similar methodologies explain the different behaviour of taxpayers, depending on the financial literacy of the country under review. No budgetary or tax policy measures can be fairly assessed without regard to the institutional system of the particular country. In addition to a description of differences, the study also concludes lessons which may be learned from an international comparison with respect to the application of examination methods on tax cuts.
Keywords: tax policy, tax cuts, tax reform, tax administration, offshore
Journal of Economic Literature (JEL) kód: G38, H21, H24, H26