Important new OECD Working Paper (WP), "Tax Design for Inclusive Growth," by four former colleagues at the Centre for Tax Policy and Administration's Tax Policy and Statistics Division. The WP adds critical new dimensions to the prior OECD Tax and Growth work. No longer focused just on economic growth, tax policy and administration designs for both equity and efficiency considerations are discussed. Many areas for future research are noted.
An important insight highlighted is when tax avoidance and evasion opportunities are closed, the supposed "mobility" of capital is reduced, thus weakening the argument for lower tax rates for "mobile" capital. The OECD/G20 BEPS Project, which will reduce corporate tax avoidance (see OECD BEPS website), and the establishment of a single common global standard on automatic exchange of financial account information (see OECD AEOI website), while will reduce personal tax evasion, are important tax system changes that will positively affect tax policy for inclusive growth.