ABSTRACT
Introduction I have dedicated the previous chapters of this book to the task of analyzing and validating the concept of pro-equity tax policy, as well as to developing a methodology to evaluate whether or not a particular discretionary tax policy is pro-equity. After all the discussions and analyses, I have come to the conclusion that to assess whether a certain discretionary tax policy is pro-equity, one should look at three factors: revenue collection, progressivity and cyclicality. My ex ante expectations of the impact of each factor is that the more revenue-increasing, progressive and countercyclical a tax policy is, the more pro-equity it will be. At the same time, I have elaborated what is, according to my analysis, the best methodology for evaluating these three factors over time: structural analysis. Structural analysis is the methodology that allows me to obtain the proxies of discretionary tax policy that I will use throughout this chapter.
