{"id":12182,"date":"2015-03-02T09:00:24","date_gmt":"2015-03-02T14:00:24","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=12182"},"modified":"2015-03-02T08:06:56","modified_gmt":"2015-03-02T13:06:56","slug":"do-poor-countries-need-to-raise-taxes","status":"publish","type":"post","link":"https:\/\/www.Centives.net\/S\/2015\/do-poor-countries-need-to-raise-taxes\/","title":{"rendered":"Do Poor Countries Need To Raise Taxes?"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2015\/03\/030215_1300_DoPoorCount1.jpg\" alt=\"\" width=\"640\" height=\"640\" \/><\/p>\n<p>Poor countries are usually encouraged to keep taxes low to attract business and drive up spending in the hopes of boosting growth. The Economist reported on a paper that indicated that this may lead to more corruption:<\/p>\n<ul>\n<li>Poor countries levy taxes equivalent to about 17% of GDP. In contrast the EU takes in 40% of GDP.<\/li>\n<li>The difference is often made up through foreign aid with Africa receiving $51 billion in 2012.<\/li>\n<li>The theory of loss aversion posits that people hate losing something they have more than they enjoy gaining something of equal value.<\/li>\n<li>Applied to economic development, it could lead to greater corruption in poor countries, since corrupt politicians are stealing foreign aid money rather than citizens&#8217; hard earned taxes.<\/li>\n<li>If instead taxes were high and people saw their own money being wasted away, civic engagement may increase, and citizens may demand more accountability.<\/li>\n<\/ul>\n<p>Read how this theory fared in a small scale experiment, and other details <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21642199-behavioural-argument-higher-taxes-no-representation-without-taxation?frsc=dg%7Ce\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21642199-behavioural-argument-higher-taxes-no-representation-without-taxation?frsc=dg%7Ce\">The Economist<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Poor countries are usually encouraged to keep taxes low to attract business and drive up spending in the hopes of boosting growth. The Economist reported on a paper that indicated that this may lead to more corruption: Poor countries levy taxes equivalent to about 17% of GDP. In contrast the EU takes in 40% of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"https:\/\/www.Centives.net\/S\/wp-content\/uploads\/2015\/03\/030215_1300_DoPoorCount1.jpg","_links":{"self":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/12182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=12182"}],"version-history":[{"count":3,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/12182\/revisions"}],"predecessor-version":[{"id":12185,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/12182\/revisions\/12185"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/12181"}],"wp:attachment":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=12182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=12182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=12182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}