TAX REFORM IN DEMOCRATIC SPAIN

A new, democratically-elected government in Spain initiated the implementation of income tax reform in the wake of the demise of the authoritarian government of General Francisco Franco in 1977. The process of income tax reform, its implementation, and adjustments by both the government and the public to the reformation of the country's income tax system stretched over a period of years from 1977 through 1988 (Barzelay & Moukhebir, 1993a, pp. 1, 3-4; Barzelay & Moukhebir, 1993b, pp. 4-5).

The income tax reform program achieved successes and suffered failures over the period. The shift from a system of indirect taxation to a system of direct taxation created both winners and losers among both taxpayers and governmental administrators. By the end of the 1980s, the Spanish public did not provide solid support for the voluntary tax on incomes, and the government was frequently unsuccessful in the legal pursuit of tax evaders. The continued viability of the reformed income tax system depended in great part on new policies that would generate widespread public support for the voluntary income tax system in Spain (Barzelay & Moukhebir, 1993a, pp. 3-5; Barzelay & Moukhebir, 1993b, pp. 3-6).

Relevant Issues (Big Issues Surrounding the Question)

A number of relevant issues were associated with the policy problem related to the development of greater public support for the voluntary, direct incom

. . .
for politicians and public servants, the taxation system likely will be perceived as being unfair. The issue of taxation system capacity is crucial for the development of widespread public support for the voluntary, direct income tax system in Spain. The public must be persuaded that the government's taxation administration has access to human resources that possess the necessary intellectual competence to fairly and effectively administer the system. Additionally the human resources complement assigned to the country's taxation administration must be sufficient in numbers to make the administration of the system both efficient and feasible. The issue of system organization also is essential to developing and maintaining widespread public support for the voluntary, direct income tax system in Spain. The taxation administration must be accessible. Accessibility may mean decentralization to assure that the taxation administration has a physical presence that affords easy accessibility to all citizens. In contrast, accessibility may mean that technology is in place to enable taxpayers to access a centralized system easily and effectively via the Internet. The organization of the taxation administration also must promote re
. . .

Some common words found in the essay are:
Spain Western, European Community, Surrounding Question, Options Alternative, Barzelay Moukhebir, Recommended Solution, income tax, tax system, Francisco Franco, taxable income, income tax system, Evaluation Criteria, Policy Question, tax evasion, tax administration, voluntary direct income, direct income, voluntary direct, direct income tax, public support, taxation administration, support voluntary, Accounting Standards, exclusion taxable income, widespread public support,
Approximate Word count = 2158
Approximate Pages = 9 (250 words per page)

More Essays on TAX REFORM IN DEMOCRATIC SPAIN