# metadata.dc.description.abstract[].value
This paper investigates the effects of a tax reform that eliminates tax rate heterogeneity and cumulative taxation using a general equilibrium model with multiple sectors with market power. Industries are connected through input-output linkages, and changes in taxation are not confined within industries. We calibrate the model to Brazil, a country with a highly distorted tax system. The revenue-neutral tax reform generates gains of 7.8% of GDP and 1.9% of welfare. Just eliminating VAT rate dispersion leads to a 5.9% increase in GDP. Due to propagation effects, in 10 sectors direct taxes increased but output and profits did not fall.

# metadata.dc.relation.ispartof[].value
UB Economics – Working Papers, 2023, E23/456

# metadata.dc.rights[].value
cc-by-nc-nd, (c) Delalibera et al., 2023