This paper analyzes the effect of a tax mix modification. More precisely, the authors assess the relevance of increasing consumption taxes and at the same time decreasing income taxes. Several arguments in favor of modifying the tax mix are analyzed, such as its impacts on savings, labor supply and tax compliance. The authors observe that Québec still relies more on income taxes, compared to the Organization for Economic Cooperation and Development (OECD) countries. In this context, if the Québec government comes forward with a tax mix reform, the authors suggest that it should opt for a moderate reform in the consumption tax rate. They recommend abolition of the tax exemptions adopted on particular goods and services, coupled with an increase in tax credit to compensate for the negative impact on the personal finances of poor taxpayers.

Poverty in Nigeria is widespread and has no geographical boundaries. The country, which was ranked as one of the A tax reform consists of making changes in the tax system that directly affect the balance between the criteria of efficiency, fairness and simplicity. These three criteria can be defined very succinctly. According to the efficiency objective, a tax system must introduce as little financial interference as possible in taxpayers' resource allocation choices so as not to distort their economic decisions. Next, according to the fairness objective, a tax system must fairly distribute the tax burden among taxpayers and relate a taxpayer's tax load to his income or wealth. Lastly, according to the simplicity objective, a tax system must be as simple as possible to make it easy both for the taxpayer to comply with and the tax administration to apply.

An adjustment in the tax mix requires a change in the tax structure by increasing the importance of one form of taxation at the expense of another. Implicitly, an adjustment in the tax mix is often associated with an adjustment in the balance among the three objectives. Accordingly, an adjustment in the tax mix is seen by some as an indirect way to reduce the progressive nature of the tax system and thus encourages work effort.

An adjustment in the tax mix requires a change in the tax structure by increasing the importance of one form of taxation at the expense of another. Implicitly, an adjustment in the tax mix is often associated with an adjustment in the balance among the three objectives. Accordingly, an adjustment in the tax mix is seen by some as an indirect way to reduce the progressive nature of the tax system and thus encourages work effort.

Public Finance, Consumption Taxes, Québec Sales Tax, Income Taxes, Taxpayers, Tax System, Consumption Taxes, Registered Retirement Savings Plans, Tax Mix, Capital Investment, Québec Government, Organization for Economic Cooperation and Development, OECD, Tax Revenue.