Home Economics & PolicyCommentBeyond the “Muddle-Through” Option

Beyond the “Muddle-Through” Option

Lebanon stands today at the crossroads of a more strenuous and challenging muddle-through phase on one hand, and progressive recovery on the other.  The road it will end up taking will ultimately depend on a series of sound and rational decisions, chief among which is the reform of the country’s taxation system. A new tax deal could ensure the country greater fiscal stability, allow for the funding of social programs, and rebuild trust between citizens and the government.  These policy objectives are fundamental if the country is to exit one of the worst financial crises of modern times and alleviate the despair of a sizable part of its population that has been plunged into poverty.  Inevitably, such a system needs to reconcile growth with equity, particularly given the extensive financial damage that has been wrought upon individuals and households.  In the report “How can a new tax system restore growth

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