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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 41 / 153

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“The Revenue Problem”, The Economist, February 13, 2003

Which are the two poorest countries in the region? Which country is the richest?

What has been Enrique Bolanos’ approach to raising tax revenue? Officials say that that proportion of “professionals” are tax dodgers?

Why do people actively engage in tax avoidance?

How do porous, inefficient tax systems affect a nation’s attempt at to nurture economic growth?

What is a nation’s “tax yield”? Which country has the lowest and which the highest tax yield? How do these numbers compare to Mexico, Brazil and Haiti?

How does the “black economy” (informal economy) affect the tax yield?

How is Costa Rica attempting to increase it’s tax yield?

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