Tax the rich? Taxation as a way to discourage regulations
Economic regulation is a way for interest groups to gain rent by reducing competition. However, regulations are often understood as anti-signatures. This is due to a lack of economic knowledge combined with an inability to process information about the real costs of average regulations on the part of the citizen. As a result, we often find ourselves in a dynamic where the real motivation behind regulations is rarely recognized and, in this way, interest groups benefit by not paying their costs. Traditional methods of dealing with regulatory quality are not working. Therefore, this article proposes a way to address this problem: to put the cost of regulation where the benefits are, i.e., on the industry or other stakeholders that are the main beneficiaries of the regulation, and to analyze the elements of the proposed regulation from an ius-economic approach and study case studies related to the situation of Peruvian universities. This is done through a descriptive, legal-theoretical, and economic methodology based on a review of contemporary literature. Finally, consider the creation of a tax for the interest groups that benefit from the regulations. While this idea is not new, it has not yet been implemented or described operationally. This commentary is an effort to bring this idea into academic and public debate.
Akinbogun, S. & Jones, C. (2018). Externalities and Planning Failure in the Housing Market. International Journal of Housing Markets and Analysis, 11(2), 433-447. https://doi.org/10.1108/IJHMA-06-2017-0056
Arellano, O., Moscoso, Y. & Quispe, G. (2019). Valoración del costo – beneficio en la recuperación de residuos de materia prima en empresas industriales. Economía, empresas e inclusión (CTEC), 3(1), 669-685.
Ayres, I. (November 18, 2009). Freakonomics. http://freakonomics.com/author/ianayres/
Baldwing, R., Cave, M. & Lodge, M. (2012). Understanding Regulation. Theory, Strategy, and Practice. Oxford University Press.
Bour, E. (2018). La teoría de “Public Choice”. Ebour.
Breyer, S. (1993). Breaking the Vicious Circle. Toward Effective Risk Regulation. Harvard University Press.
Buchanan, J. & Tullock, G. (2004). The Calculus of Consent. Logical Foundations of Constitutional Democracy. In C. Rowley (ed.), The Calculus of Consent: Logical Foundations of Constitutional Democracy. Liberty Found.
Coase, R. (1988). The Firm, the Market, and the Law. The Chicago University Press.
Congress of the Republic of Peru. The law establishes a moratorium for the creation and authorization of operation of new public and private-public and private. [Law 31193]. (2021). El Peruano 481701 of May 14, 2021.
Congress of the Republic of Peru. The law establishes a moratorium on the creation of public and private-public and private. [Law 30759]. (2018). El Peruano 16016 of April 25, 2018.
Congress of the Republic of Peru. Law on the national system of evaluation, accreditation, and certification of the quality of education. [Law 28740]. (2006). El Peruano 348623 of August 12, 2006.
Congress of the Republic of Peru. The legislative decree establishes provisions to guarantee the continuity and quality of the provision of educational services in institutes and schools of higher education, in the context of the health emergency caused by Covid-19. [Legislative Decree No. 1496]. (2020). El Peruano 15413 of May 10, 2020.
Congress of the Republic of Peru. University Law. [Law 30220]. (2014). El Peruano 12914 of July 9, 2014.
Del Pozo, C. (2017). Efectos de la Desregulación del Sistema Universitario en el Mercado Laboral en Perú. UBA.
Democratic Constituent Congress – CCD. Constitution of the Peruvian Public. (1993). El Peruano of December 30, 1993.
Escobar Mamani, F., Argota Pérez, G., Ayaviri Nina, V., Aguilar Pinto, S., Quispe Fernandez, G. & Arellano Cepeda, O. (2021). Activity-based costing (ABC) in SMEs and innovative initiatives: possible option or expired? Revista de Investigaciones Altoandinas, 23(3), 171-180. https://dx.doi.org/10.18271/ria.2021.321
Jorratt, M. (2021). Impuestos sobre el patrimonio neto en América Latina. Serie Macroeconomía del Desarrollo, (218).
Laplane, A. & Mazzucato, M. (2020). Socializing the risks and rewards of public investments: Economic, policy, and legal issues. Research Policy, 49. https://doi.org/10.1016/j.repolx.2020.100008
Maloy, J. & Ward, M. (2021). The Impact of Input Rules and Ballot Options on Voting Error: An Experimental Analysis. The Politics, Promise and Peril of Ranked Choice Voting, 9(2), 306-318. https://doi.org/10.17645/pag.v9i2.3938
Meiners, R. & Yandle, B. (1989). Regulatory Lessons from the Reagan Era: Introduction. In R. Meiners, & B. Yandle (auth.), Regulation and the Reagan Era. Politics, Bureaucracy and the Public Interest. Holmes & Meier.
Méndez, R. (2017). Essays on institutions, coordination and legal theory. Centro de Publicaciones de la Pontificia Universidad Católica del Ecuador.
Méndez, R. & Sumar, O. (2020). Rule of Law Versus Soft Rule of Law. Revista de Derecho Político, 109, 373-400. https://doi.org/10.5944/rdp.109.2020
Meza, N. (May 6, 2020). Impuesto a la riqueza en el Perú. Alainet. https://www.alainet.org/es/articulo/206387
Mitchell, W. (2001). The old and new public choice: Chicago versus Virginia. In William F. Shughart II & Laura Razzolini (eds.), The Elgar Companion to Public Choice. Edward Elgar Publishing.
Nelson, J. (2006). Every industry or occupation with enough political power to utilize the state will seek to control entry. International Review of Law and Economics, 26.
Nolasco, S. (March 21, 2021). Gravar a multinacionales y súper ricos, necesario para la recuperación económica. El Economista. Retrieved from: https://www.eleconomista.com.mx/economia/Gravar-a-multinacionales-y-super-ricos-necesario-para-la-recuperacion-economica-20210321-0040.html
Olson, M. (1971). The Logic of Collective Action. Public Goods and the Theory of Groups. Harvard University Press.
Peruvian Ministry of Education. Regulation of Law Nº 28740, Law of the National System of Evaluation, Accreditation, and Certification of the Quality of Education. [Spreme Decree 018-2007-ED]. (2007). El Peruano 348782 of July 10, 2007.
Pinzón Camargo, M. (2016). Prácticas para mejorar la regulación en Colombia. Revista de Economía Institucional, 18(35), 207-228. https://doi.org/10.18601/01245996.v18n35.11.
Quah, E., Siong, T. & Lee, Z. (2021). Cost-benefit analysis of developing countries. Advances in Transport Policy and Planning, 7, 235-260.
Saavedra, J. (May 15, 2016). Indispensable (e irrenunciable). El Comercio.
Shapiro, S., & Schroeder, C. (2008). Beyond Cost-Benefit Analysis: A Pragmatic Reorientation. Harvard Environmental Law Review, 31.
Smith, A. & Yandle, B. (2014). Bootleggers and Baptists: How Economic Forces and Moral Persuasion Interact to Shape Regulatory Politics. Washington: Cato Institute.
Stigler, G. (1960). “Reply”, The Quarterly Journal of Economics. Oxford University Press, 74(4), 670-671.
Stigler, G. (1971). The Theory of Economic Regulation. The Bell Journal of Economics and Management Science, 2(1).
Sumar, O. (2018). La retórica del Intervencionismo: mano malvada, mercados especiales y conquistas humanas. Centro de Publicaciones de la Pontificia Universidad Católica del Ecuador.
Viscusi, K., Harrington, J. & Vernon, J. (2005). Economics of Regulation and Antitrust, 4th edition. The MIT Press.
Widiarty, W. S. (2018). The Legal Analysis of Consumer Protection Against. The Circulation of Expired Food Products in Indonesia. International Journal of Management and Bussiness Research, 8.
Copyright (c) 2022 Oscar Sumar Albujar, Rubén Méndez Reátegui
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.