Political representation bias linked to lower level of personal income taxes - IDB

- Monday, December 5, 2011

Political representation bias linked to lower level of personal income taxes - IDB

A global study conducted by the IDB concluded that democratic regimes in countries with high income inequality have been unable to increase personal income taxation in part because of bias in political representation, a release reads.

The greater the bias, the smaller is the collection of personal income taxes as a share of GDP, according to the IDB study which analyzed data from 50 countries between 1990 and 2007.

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