| Universal benefits have an income effect, but are not, in themselves, distortionary as regards the choice of taking up work. |
| Consumption taxes are less distortionary than labour income taxes because they fall on all production factors and not only on labour. |
| Measures that can be considered to alleviate the impact of high oil prices on poorer sections of the population should remain short-term and targeted, and should avoid distortionary effects. |
| However, if people are motivated to work by the idea of leaving their families an inheritance, the tax will be distortionary. |
| To this end, reducing the most distortionary elements of the tax and benefit systems would be beneficial for growth and employment. |
| Venezuela is trapped in a vicious cycle of distortionary interventions, weak policy frameworks, and economic and social deterioration. |
