Editorial Introduction

Abstract

During the 1970s and 1980s, discussions and debates about the problems and reforms of the tax system have been quite lively and widespread in most market economies. Both politicians and the general public have taken an active part in them, and economists have also had their say. In addition, the problems of taxation have also been the subject of a great deal of research effort by the economics profession. Various limits of taxation have been pointed out; they include the possibly high levels of the excess burden, potential disincentive effects of high marginal tax rates, tax evasion and the resulting hidden economy, and the different problems in designing particular taxes with desirable properties. Various alternatives to the present forms of taxation have also been suggested and debated in different countries.