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Interesting article which uses terminology of health taxes for specific excise taxes rather than sin taxes!

Health taxes: missed opportunities for health and health-care financing

Helen Clark Cathrine Lofthus Robert Marten Kumanan Rasanathana

Short introduction

Every year more than 10 million people die unnecessarily from consuming tobacco, alcohol, and sugary beverages.  In the wake of the COVID-19 pandemic and other crises constraining fiscal space, financing for health care and social services is stagnating or facing cuts, endangering the achievement of the Sustainable Development Goal (SDG) targets. Yet, a new report from the Task Force on Fiscal Policy for Health, supported by Bloomberg Philanthropies, aiming to address the growing global burden of non-communicable diseases, shows that governments globally are missing the opportunity to implement a simple solution: a one-time tax increase on tobacco, alcohol, and sugary beverages (so-called health taxes); raising prices 50% would raise US$3•7 trillion over the next 5 years—$2•1 trillion in low-income and middle-income countries and $1•6 trillion in high-income countries. These resources could be used to invest in and realise the recent UN Summit of the Future's call to “turbo-charge” the full achievement of the SDGs before 2030.

Full article at Health taxes: missed opportunities for health and health-care financing - The Lancet Volume 404, Issue 10466p1905-1907November 16, 2024
https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(24)02427-9/fulltext?dgcid=raven_jbs_etoc_email
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The Revenue Framework / How Property Taxes Can Help Low-Income Countries to Develop
« Last post by John Short on November 12, 2024, 10:46:58 GMT »
Interesting IMF Blog
https://www.imf.org/en/Blogs/Articles/2024/11/11/how-property-taxes-can-help-low-income-countries-to-develop?utm_medium=email&utm_source=govdelivery

How Property Taxes Can Help Low-Income Countries to Develop

Satellites, drones, and the right policies can help countries increase revenue by up to 10 times at the local level
Martin Grote, Mario Mansour,Jean-François Wen

November 11, 2024

The world’s governments must raise an additional $3 trillion to achieve sustainable and inclusive economic growth goals this decade. The cost in emerging markets equals 4 percent of gross domestic product—and 16 percent for low-income countries.
How can countries finance such staggering price tags? Large cities such as Delhi and Lagos show a way forward: Taxing property more efficiently can play a meaningful role in raising revenue at the local level, allowing countries to invest more in their people, new IMF analysis shows. Previous IMF research has shown that countries have ample potential to raise more domestic tax revenue if they need it—up to 5 percentage points of GDP over two decade

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The House of Lords Food, Diet and Obesity Committee demands that the Government should develop a comprehensive, integrated long-term new strategy to fix our food system, underpinned by a new legislative framework. This is the key conclusion of the Committee’s report, ‘Recipe for health: a plan to fix our broken food system’.

https://committees.parliament.uk/committee/698/food-diet-and-obesity-committee/news/203372/the-government-needs-a-plan-to-fix-our-broken-food-system-and-turn-the-tide-on-the-public-health-emergency/

Shorthand story: We need a plan to fix our broken food system
Inquiry: Food, Diet and Obesity

The report finds that obesity and diet-related disease are a public health emergency that costs society billions each year in healthcare costs and lost productivity.

Key recommendations

There is no silver bullet. As part of the new comprehensive strategy, the Government should:

•   make large food businesses report on the healthiness of their sales and exclude businesses that derive more than a defined share of sales from less healthy products from any discussions on the formation of policy on food, diet and obesity prevention.
•   give the Food Standards Agency (FSA) independent oversight of the food system.
•   introduce a salt and sugar reformulation tax on food manufacturers, building on the success of the Soft Drinks Industry Levy. The Government should consider how to use the revenue to make healthier food cheaper, particularly for people living with food insecurity.
•   ban the advertising of less healthy food across all media by the end of this Parliament, following the planned 9pm watershed and ban on paid-for online advertising in October 2025.
•   commission further research into the links between ultra-processed foods (UPFs) and adverse health outcomes and review dietary guidelines to reflect any new evidence. The rapidly growing body of epidemiological evidence showing correlation between consumption of UPFs and poor health outcomes is alarming. Beyond energy and nutrient content, causal links between other properties of UPFs and poor health outcomes have not at the present time been clearly demonstrated. To understand any links, more research is needed.
•   immediately develop an ambitious strategy for maternal and infant nutrition and drive up compliance with the school food standards. This will help break the vicious cycle by which children living with obesity are five times more likely to become adults with obesity.
•   enable auto-enrolment for Healthy Start and free school meals and review the costs and benefits to public health of increasing funding and widening eligibility for both schemes. This is essential to help families living in poverty afford healthy food and to begin closing the gaping inequalities in unhealthy diets and obesity rates.

The report notes that:

•   Two-thirds of adults are overweight and just under a third are living with obesity.
•   After tobacco, diet-related risks now make the biggest contribution to years of life lost. The annual societal cost of obesity is at least 1–2% of UK GDP.
•   Unhealthy diets are the primary driver of obesity, with people in all income groups failing to meet dietary recommendations.
•   There has been an utter failure to tackle this crisis. Between 1992 and 2020, successive governments proposed nearly 700 wide-ranging policies to tackle obesity in England, but obesity rates have continued to rise.
•   The food industry has strong incentives to produce and sell highly profitable unhealthy products. Voluntary efforts to promote healthier food have failed. Mandatory regulation has to be introduced.
•   Many people struggle to pay the bills and have neither the time nor the facilities to cook meals from scratch. Healthier food is also often more expensive than less healthy food. The report focuses on what we can do to ensure the food industry makes healthier food accessible and affordable for all.

Chair's comments
Baroness Walmsley, Chair of the Food, Diet and Obesity Committee, said:

“Food should be a pleasure and contribute to our health and wellbeing, but it is making too many people ill. Something must be going wrong if almost two in five children are leaving primary school with overweight or obesity and so many people are finding it hard to feed healthy food to their families. That is why we took a root and branch look at the food system and analysed what had gone wrong over the past few decades.

“Over the last 30 years successive governments have failed to reduce obesity rates, despite hundreds of policy initiatives. This failure is largely due to policies that focused on personal choice and responsibility out of misguided fears of the ‘nanny state’. Both the Government and the food industry must take responsibility for what has gone wrong and take urgent steps to put it right.

“We hope, given the recent comments from the Prime Minister, Lord Darzi and the Secretary of State for Health, that there is now an appetite to shift towards prevention of ill health. We urge the Government to look favourably on our plan to fix our broken food system and accept that not only is it cost-effective, but that it would lead to a lot less human misery.”
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The Revenue Framework / Re: Global Tax Evasion Report 2024 something new
« Last post by John Short on October 23, 2024, 07:03:18 GMT »
In 2012 the famous French actor Gérard Depardieu moved his home across the border to Belgium to avoid paying a hefty surtax on incomes over 1 million euros. The ease with which Depardieu avoided taxes made international news. A young French economist named Gabriel Zucman followed the events with avid interest, as he had recently written his master’s thesis at the Paris School of Economics (PSE) on how tax rates affect flight by the superrich. 

Fast-forward to July 2024, when the Group of 20 countries (G20) discussed a proposal for a global minimum tax on the world’s 3,000 billionaires. Coordination across countries would ensure that the superrich could not simply pull a Depardieu by fleeing to a different country. The blueprint for the G20 proposal was drawn up by a still-young Gabriel Zucman. 

In the less than two decades since his master’s thesis, the 37-year-old Zucman has established himself as one of the world’s leading experts on measuring incomes and wealth, and on how—and how much—to tax very rich people and corporations. “We have to fix the mistakes we’ve made in taxing the superrich, not simply throw up our hands and give them a free pass,” Zucman told F&D. 

Read in
https://www.imf.org/en/Publications/fandd/issues/2024/09/people-in-economics-scourge-of-the-rich-loungani?utm_medium=email&utm_source=govdelivery
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Electric Car Subsidies Are a Plus, but Could Be Improved, Study Finds
Hunt Allcott, Reigner Kane, Maximilian S. Maydanchik, Joseph S. Shapiro & Felix Tintelnot

Working Paper 33032
DOI 10.3386/w33032
Issue Date October 2024

We study electric vehicle (EV) tax credits in the US Inflation Reduction Act (IRA), the largest climate policy in US history, with three goals. First, we provide the first ex-post microeconomic welfare analysis of this central component of the IRA. Event studies around changes in eligibility for EV tax credits find that short-run economic incidence falls largely on consumers. Additionally, domestic content restrictions on tax credits for purchased vehicles have driven enormous shifts to leasing. Our equilibrium model shows that compared to pre-IRA policy, IRA EV credits generated $1.87 of US benefits per dollar spent in 2023, at taxpayer cost of $32,000 per additional EV sold. Compared to scenarios with no EV credits, however, the IRA EV credits created only $1.02 of benefits per dollar of government spending. Second, we characterize the gains from policies targeting heterogeneity in externalities across vehicles. We find that relative to uniform credits, differentiating credits across EVs according to their heterogeneous externalities would substantially increase policy benefits. Third, we quantify tradeoffs in the IRA EV credits between foreign and domestic welfare and between trade and the environment. We find that the IRA EV credits benefit the environment but undermine trade, since they decrease global carbon emissions but use profit shifting to decrease foreign producer surplus. A controversial IRA loophole that removes domestic content restrictions on tax credits for EV leases has negative domestic benefits.


https://www.nber.org/papers/w33032
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The Sector PFM Boards / Advancing the economics of health for all
« Last post by John Short on September 14, 2024, 08:45:50 GMT »
Interesting Comment in The Lancet which is worth reading

Advancing the economics of health for all
Mariana Mazzucatoa iipp-director-pa@ucl.ac.uk ∙ Tedros Adhanom Ghebreyesusb

Volume 404, Issue 10457P998-1000September 14, 2024

Full article can be found at
https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(24)01873-7/fulltext?dgcid=raven_jbs_etoc_email


 Summary Highlights

"The incredible economic growth of the past century has delivered many benefits, including for health. But this growth has come at a heavy price in terms of pollution, climate change, unhealthy diets and behaviours, and the increasing burden of non-communicable diseases and antimicrobial resistance. Moreover, the benefits of economic growth have not been shared equally, with 4•5 billion people—more than half of the global population—still without access to essential health services and 2 billion individuals experiencing financial hardship when trying to do so, driving huge inequalities in health outcomes. Governments need to rethink the narrow focus on growth in gross domestic product (GDP) that typically dominates economic decision making.

The interlinked crises of health, climate change, and inequality are the direct result of economic policy choices. The primary goal of economic policy is assumed to be growth, with the danger that health, social, and environmental policies then have to respond to resultant problems. Under this framework, health and wellbeing are seen as inputs to or by-products of economic growth.2 Instead, the health of people and the planet should be the goal of economic policy and growth.
The WHO Council on the Economics of Health for All, chaired by one of us (MM) and composed of ten female economists and area experts, was founded by WHO to fundamentally rethink how the relationship between health and the economy is framed in economic policy and consider what it would mean for the economy to serve health. It flipped the assumptions around: instead of health serving the economy, what would it mean for the economy to serve health? The Council reimagined how economics and health relate across four inter-related areas and made recommendations in each: valuing health, financing health, directing innovation, and building public sector capacity. These recommendations have informed the new resolution on the Economics of Health for All that was endorsed by WHO member states at the 77th World Health Assembly (WHA) in May, 2024. The resolution gives WHO and its member states a mandate to pursue this new approach. But the success of the resolution will require fundamental policy changes.

Panel Recommendations of the WHO Council on the Economics of Health for All

Valuing
•   Valuing the essential: treat health and wellbeing, health workers, and health systems as a long-term investment, not a short-term cost
•   Human rights: use legal and financial commitments to enforce health as a human right
•   Planetary health: restore and protect the environment by upholding international commitments to a regenerative economy that links planet and people
•   Dashboard for a healthy economy: use a range of metrics that track progress across core societal values, above and beyond the narrow, static measure of gross domestic product
Financing
•   Long-term finance: adopt a comprehensive, stable approach to funding health for all
•   Quality of finance: redraw the international architecture of finance to fund health equitably and proactively, including an effective and inclusive crisis response
•   Funding and governance of WHO: ensure WHO is properly funded and governed to play its key global coordinating role in health for all
Innovating
•   Collective intelligence: build symbiotic public–private alliances to maximise public value, sharing both risk and rewards
•   Common good: design knowledge governance, including intellectual property regimes, for the common good to ensure global equitable access to vital health innovations
•   Outcomes orientation: align innovation and industrial strategies with bold cross-sectoral missions to deliver health for all
Strengthening public sector capacity
•   Whole of government: recognise that health for all is not only for health ministries but for all government agencies
•   State capacity: invest in the dynamic capabilities of the public sector, institutionalising experimentation and learning, to lead effectively in delivering health for all
•   Build trust: demonstrate transparency and meaningful public engagement to hold governments accountable for the common good."

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Have you seen this? / A Blueprint for Better International Collaboration on Evidence
« Last post by John Short on September 11, 2024, 09:06:12 GMT »
Interesting discussion about 18 minutes into BBC More or Less with Tim Harford
More or Less - How long does it take to turn around an oil tanker? - BBC Sounds
https://www.bbc.co.uk/sounds/play/m0022skj

Global Evidence Report
A Blueprint for Better International Collaboration on Evidence
David Halpern Deelan Maru

A Blueprint for Better International Collaboration on Evidence | The Behavioural Insights Team (bi.team)
https://www.bi.team/publications/international-collaboration-evidence/

Summary
“Governments collectively spend trillions on public services. Despite this, surprisingly little is known on what works across most areas of public spending. Alongside this, R&D spending by governments across most areas of spending, with the exception of health and defence, are incredibly low. For the U.S., UK, Australia and Canada, the implied research gap is c.$100 billion per annum.
Given the scarcity of good evidence, there are enormous gains to be had from leveraging the existing evidence better, and collaborating to build more. There are overlapping common interests and questions (e.g. how best to screen cancer, the best way to teach a child to read and write, and how to reduce recidivism). This report, commissioned by the Economic and Social Research Council (ESRC), provides a blueprint for how these overlapping interests can be jointly addressed within the global evidence ecosystem. Developed by BIT and Nesta, with participation from the U.S., UK, Australian and Canadian governments, the blueprint offers practical recommendations for improving international collaboration on evidence.

Key recommendations

Our main recommendation is for countries to collaborate on evidence synthesis. The most promising avenue for evidence synthesis is Living Evidence Reviews (LERs), which are systematic reviews that are continuously updated. We propose that ‘meta’ LERs are conducted across all areas of social policy to answer the questions that really matter to policymakers. 
“Globally, it may be helpful for countries to join forces in producing systematic reviews and identifying evidence gaps. One proposal, currently being shaped by David Halpern and Deelan Maru, proposes that a handful of likeminded governments join forces to produce better systematic reviews and avoid duplication (Halpern and Maru, 2024)… Like the Cochrane Collaboration and the Campbell Collaboration, such an approach can help expand our knowledge of what works, and put a spotlight on the areas where more evidence is needed.”
•   Establish a Shared Evaluation Fund across partner countries to ensure evaluation of promising interventions
•   Promote standardised reporting and publication protocols to facilitate inter-governmental sharing of evaluated interventions
•   Conduct evidence gap maps across priority policy areas to obtain an overarching view of the state of the evidence
•   Prioritise the synthesis of this evidence into high-quality, comprehensive reviews, or meta-Living Evidence Reviews (meta-LERs)
•   Strengthen international public service professional networks to accelerate the transfer and adoption of best practices across countries
•   Conduct research into effective translation and adoption, or ‘metascience’, to accelerate the transfer of evidence into policy and practice

Delivery options

A Minimum Viable Product (MVP) version, focusing solely on improvements to the quality of secondary evidence, could be delivered for $11-22 million. This would test the feasibility of evidence maps and meta-LERs, and establish a collaborative platform for funding. More intensive versions, allowing for improvements to primary evidence and adoption, could be delivered for $30-196m.
These amounts may seem high, but they pale in comparison to the amount spent on public services. Redirecting services to those that are proven effective through evidence would likely yield savings many times the value of the upfront investment.
This blueprint is a call to action for governments to collaborate more closely on evidence generation and utilisation. By pooling resources and expertise, countries can bridge the existing gaps in their evidence ecosystems, ultimately leading to more informed and effective public policies. This collaborative effort promises not only financial savings but also broader societal benefits through improved public service delivery.”

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Have you seen this? / Café Economics
« Last post by John Short on September 04, 2024, 07:56:41 GMT »
For those of us of a certain age and those striving to reach it!

Café Economics: Worry Free Retirement (imf.org)


https://www.imf.org/en/Publications/fandd/issues/2024/09/cafe-economics-worry-free-retirement
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Have you seen this? / Re: Finance and Development Magazine at 60
« Last post by John Short on July 25, 2024, 08:16:56 GMT »
Over the past 30 years the IMF has adapted to global shocks and evolving member needs.

The IMF has always adapted to the evolving needs of its member countries, and the pace of change has accelerated in the past 30 years, the IMF’s Atish Rex Ghosh and Andrew Stanley write in F&D magazine’s Picture This series.

https://www.imf.org/en/Publications/fandd/issues/2024/06/Picture-This-The-Evolving-IMF?utm_medium=email&utm_source=govdelivery
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Have you seen this? / Re: Finance and Development Magazine at 60
« Last post by John Short on June 28, 2024, 12:43:39 GMT »
Two changes which were significant

1. Change from Balance of Payment support to Budget Support where no one was concerned with what the money was used for apart from imports which were counted often from the supplying country to justify the amount.

2  In 1999 IMF introduced the Poverty Reduction and Growth Facility (PRGF) to replace its Enhanced Structural Adjustment Facility (ESAF).  This meant that budget support (by Bilateral and multi-lateral donors) was moved above the line as revenue rather than a below the line financing instrument.  This allowed an expansion of expenditures on, it was hoped, health and education.
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