Investments in social protection and their impacts on economic growth: tax financing options
The publication builds on previous ITUC research showing the economic benefits of social protection, by examining the different financing options that states have at their disposal in order to strengthen and extend their social protection systems. The study simulates the effects of different tax financing scenarios for social protection on household income, employment, and overall GDP. The analysis is carried out in Bangladesh, Colombia, Costa Rica, Georgia, Ghana, India, Rwanda, and Serbia.
The report finds that overall, progressive forms of taxation generate much better outcomes in terms of redistribution and incomes for poor households, as well as lead to increased employment and GDP over time. The study underscores that those who can afford to pay more should pay more, and that financing inclusive and resilient social protection systems in a fair way is possible: it is a matter of political will.