Tax Justice Focus, Volume 3, Number 1: INEQUALITY

From the Editor

The Inequality Issue (Click here)

The first quarter 2007 edition of Tax Justice Focus is a special edition on inequality.

In the editorial, “Trickling Down, or Gushing Up?”, we look at economic theories that inequality per se does not matter; boosting the rich will create benefits that trickle down to the poor.  TJF points out that while older critiques of this ’trickle-down economics’ –that it has failed– are perfectily valid, one part of the argument has been overlooked: tax haven activities actively turn trickle-down economics upside down, by provoking massive capital flows out of poorer countries into richer ones.

In ’Gender and Taxation Systems’ Caren Grown and Imraan Valodia highlight the lack of a gender perspective in current debates about taxation, and the ways that tax policies can discriminate against women.

Other key articles include:

Anna Thomas on Christian Aid’s report A Rich Seam, which explores how tax incentives given to companies seeking access to minerals in several developing countries have led to a remarkable erosion of revenue, far outweighing any extra investment that such incentives are supposed to have attracted.

Sheila Killian, lecturer in accounting and finance at the University of Limerick, on how Ireland is embarking on a second round of tax competition, now that high wages and prices have made that country an expensive place to do business in.  She finds that this second round of tax competition has sinister, unforeseen implications for developing countries.

Fausto Hernández-Trillo arguing that Mexico’s tax policies scarcely contribute to reducing high and persistent levels of inequality and poverty.  Mexico’s experience brings out an important point: fiscal policy should be considered as a whole, and not just from the tax revenue side.

This edition also covers the launch of Tax Justice Network for Africa and plans for Youth TJN; it provides feedback from the 2007 Tax Justice Council; it covers TJN’s role in advising the Leading Group of Countries on Solidarity Levies; and reviews a new book–A Game As Old As Empire–which contains chapters by several TJN members.

The pdf file of this edition, which has been designed with a screen layout suitable for printing on standard A4 paper, can be downloaded here: TJF Vol.3,No.1

The next edition will feature articles around the theme of accountability.

For older editions, click here