The Influence of Political Institutions and Governance on Tax Progressivity in the East Asia-Pacific Region
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Abstract
This paper examines the relationship between political institutions, governance, and tax progressivity within the East Asia - Pacific region. Tax progressivity is an important policy tool to promote more just societies and reduce income inequality. Political institutions have great influence in shaping tax policy and ensuring the progress of taxes and the configuration of the tax system. Level of enforcement and compliance with tax laws It all depends on the impact of political institutions. It was found that factors of governance and political institutions influence the progress and advancement of the personal income tax system. Political pressure, such as pressure from interest groups, can lead to changes that slow progressivity. Progressivity in the tax system tends to occur in countries with stable political institutions and a high level of democracy and transparency. On the other hand, corruption and the lack of strong political institutions can hinder tax progressivity. Strong administrative infrastructure and effective tax collection and enforcement mechanisms are essential to maintaining a progressive tax system. However, these institutions also face obstacles, such as resistance from the wealthy, a lack of technical expertise, and the need to balance interests and competitive priorities. This article explores the pursuit of tax progressivity in the East Asia-Pacific region and presents possible solutions that different countries can use. It can be used to enact progressive tax reform. Strengthening political institutions is a critical step toward tax advancement and the establishment of a fair, transparent, and accountable tax system in the East Asia - Pacific region.
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