In this paper, we examine recent tax policy changes of 60 nations after the financial crisis based on the IBFD database, OECD tax database and other research resourc-es.
First, each countries tried to revitalize economy through tax and fiscal policy. OECD countries, on average, have adopted the fiscal stimulus measures in the amount of 1.6 percent of GDP in 2008. Compared to other OECD countries, Korea was able to implement large fiscal policies because of small budget deficit. The ag-gressive fiscal policy has higher probability to damage its fiscal sustainability in the mid and long term.
Second, there are certain features of tax policy conducted during the economic stagnation. This policy carries out against the decrease of aggregate demand, expe-diated investment, consumption and employment. In terms of personal income tax, most countries reduced income tax for lower-income group, and strengthened the labor supply incentives by using EITC, etc. Some ways are also introduced for the purpose of boosting investment and easing the credit restriction in taxation on ju-ridical persons. In case of value added tax, there has been varied from temporary tax exemptions across industries and countries.
First, each countries tried to revitalize economy through tax and fiscal policy. OECD countries, on average, have adopted the fiscal stimulus measures in the amount of 1.6 percent of GDP in 2008. Compared to other OECD countries, Korea was able to implement large fiscal policies because of small budget deficit. The ag-gressive fiscal policy has higher probability to damage its fiscal sustainability in the mid and long term.
Second, there are certain features of tax policy conducted during the economic stagnation. This policy carries out against the decrease of aggregate demand, expe-diated investment, consumption and employment. In terms of personal income tax, most countries reduced income tax for lower-income group, and strengthened the labor supply incentives by using EITC, etc. Some ways are also introduced for the purpose of boosting investment and easing the credit restriction in taxation on ju-ridical persons. In case of value added tax, there has been varied from temporary tax exemptions across industries and countries.