Abstract: In developing countries, irregularity of economy, low per capita income and inferior government ability make the nominal progressivity differ a lot from the real progressivity of tax systems. Therefore, on the one hand, there are different features of the progressivity between developing countries and developed countries in redistribution; on the other hand, the distributing ability of tax systems in developing countries is indeed inferior to that in developed countries. So during redistribution in developing countries, a new thought will be established: the effect of redistribution is not the effect of a specific tax, and not the effect of the whole tax system as well, it should be the effect of the whole fiscal system. To achieve the goal of redistribution in developing countries, tax system should be involved in the framework of fiscal system, instead of laying emphasis on the progressivity and the proportion of a specific tax, namely not attaching too much importance to the progressivity of tax system. During redistribution in developing countries, the main goal of tax system is to collect enough revenue for redistributive public expenditure policies with the least efficiency loss, and meanwhile, it should be done to perfect tax system itself, increase its real progressivity, to let it play a supplementary role in redistribution.
Keywords: Developing Country, Tax System, Progressivity, Redistribution, Public Expenditure
source:Finance & Trade Economics ,No5,2013