President-Elect Obama’s Tax and Stimulus Plans Roberton Williams January 2009
... credit of approximately $500). Spouses filing jointly could each claim the credit based on ...
... credit of approximately $500). Spouses filing jointly could each claim the credit based on ...
Debates in Macroeconomics: Monetarism, New Classical
... tax rate could cause tax revenues to fall. Similarly, a cut in the tax rate could generate enough additional economic activity to cause revenues to rise. ...
... tax rate could cause tax revenues to fall. Similarly, a cut in the tax rate could generate enough additional economic activity to cause revenues to rise. ...
The Iceland Tax System
... This resulted in very harsh treatment of income that was saved and invested, especially prior to the 1997 reform that ended the punitive 40 percent-plus tax that applied to most forms of capital income. But even after the 10 percent flat tax on capital income was instituted, the wealth tax still res ...
... This resulted in very harsh treatment of income that was saved and invested, especially prior to the 1997 reform that ended the punitive 40 percent-plus tax that applied to most forms of capital income. But even after the 10 percent flat tax on capital income was instituted, the wealth tax still res ...
This PDF is a selection from a published volume from... Volume Title: Tax Policy and the Economy, Volume 23
... James R. Hines Jr., University of Michigan and NBER Lawrence H. Summers, Harvard University and NBER ...
... James R. Hines Jr., University of Michigan and NBER Lawrence H. Summers, Harvard University and NBER ...
The Case Against the Case Against Discretionary Fiscal Policy by
... cyclical conditions warranted. The Kennedy-Johnson tax cuts of 1964-1965 marked the first deliberate use of fiscal policy in U.S. history, and they were judged to be a great success. From a modern perspective, one can only marvel at the unabashed blend of activism and optimism exuded by Walter Helle ...
... cyclical conditions warranted. The Kennedy-Johnson tax cuts of 1964-1965 marked the first deliberate use of fiscal policy in U.S. history, and they were judged to be a great success. From a modern perspective, one can only marvel at the unabashed blend of activism and optimism exuded by Walter Helle ...
THE FISCAL POLICY FRAMEWORK IN CHINA Liu Lida* In the last
... measures to address externalities, especially negative ones. In this regard, the government can introduce subsides and taxes. For example, to address overproduction of a good, the government may levy higher taxes or charges so that the private marginal costs are made equal to the social marginal cos ...
... measures to address externalities, especially negative ones. In this regard, the government can introduce subsides and taxes. For example, to address overproduction of a good, the government may levy higher taxes or charges so that the private marginal costs are made equal to the social marginal cos ...
Fiscal Rules and Countercyclical Policy: Frank Ramsey Meets
... including legal restrictions on fiscal policy (balanced budget restrictions or debt ceilings). A sizeable literature already examines fiscal policy from a welfare theoretic perspective. Much of this work builds on Frank Ramsey’s (1927) insight that governments should equate the marginal deadweight l ...
... including legal restrictions on fiscal policy (balanced budget restrictions or debt ceilings). A sizeable literature already examines fiscal policy from a welfare theoretic perspective. Much of this work builds on Frank Ramsey’s (1927) insight that governments should equate the marginal deadweight l ...
S045408_en.pdf
... reforms have tended to favour duties easier to collect and with a larger tax base, reduce personal income tax highest marginal rates, and a reduction in the average corporate income tax rate, which have been compensated through an enlargement of the income tax base. The overall increase of effective ...
... reforms have tended to favour duties easier to collect and with a larger tax base, reduce personal income tax highest marginal rates, and a reduction in the average corporate income tax rate, which have been compensated through an enlargement of the income tax base. The overall increase of effective ...
A brief history of Australia`s tax system
... stock taxes. Charges for these services were an additional source of revenue, often exceeding the cost of the services. The ‘gold rush’, which began in Australia in 1851, offered a new opportunity for governments to raise revenue, with some small scale alluvial miners making large amounts of money. ...
... stock taxes. Charges for these services were an additional source of revenue, often exceeding the cost of the services. The ‘gold rush’, which began in Australia in 1851, offered a new opportunity for governments to raise revenue, with some small scale alluvial miners making large amounts of money. ...
Chapter 15 - Vanderbilt University
... capital gains tax cuts and corporate income tax cuts have been used. The theory is that if corporate costs of investing are lowered through increased tax credits or reductions in corporate profits tax rates, corporations will undertake increased investment. And the economy will grow faster in the lo ...
... capital gains tax cuts and corporate income tax cuts have been used. The theory is that if corporate costs of investing are lowered through increased tax credits or reductions in corporate profits tax rates, corporations will undertake increased investment. And the economy will grow faster in the lo ...
The State of Wisconsin in the New Economy
... It is beyond the purview of this paper to look at all the ways that state government might assist the transition to a knowledge-based economy in Wisconsin. For instance, the combinations and permutations possible in dealing with the five categories of the Progressive Policy Institute’s Index could ...
... It is beyond the purview of this paper to look at all the ways that state government might assist the transition to a knowledge-based economy in Wisconsin. For instance, the combinations and permutations possible in dealing with the five categories of the Progressive Policy Institute’s Index could ...
Population Aging and the Efficiency of Fiscal Policy in New Zealand
... nature, taxes create incentives for taxpayers to substitute away from taxed activities toward activities that are not taxed, or are taxed at lower marginal rates. If the taxed activities would otherwise be worthwhile, the substitution reduces welfare. It follows that society would benefit if taxes w ...
... nature, taxes create incentives for taxpayers to substitute away from taxed activities toward activities that are not taxed, or are taxed at lower marginal rates. If the taxed activities would otherwise be worthwhile, the substitution reduces welfare. It follows that society would benefit if taxes w ...
Chapter 12
... spending was relatively constant during the 1990s, but it rose steadily during 2000-2007, and sharply from 2008-2011. • As the lower frame indicates, federal spending as a share of GDP fell modestly during the 1990s, but was relatively constant during the 2000-2007 years, and increased substantially ...
... spending was relatively constant during the 1990s, but it rose steadily during 2000-2007, and sharply from 2008-2011. • As the lower frame indicates, federal spending as a share of GDP fell modestly during the 1990s, but was relatively constant during the 2000-2007 years, and increased substantially ...
Should the President`s Tax Cuts be Made Permanent?
... exceed their share of federal tax payments, so their share of the federal tax burden would decline. The annual tax cut among households with income above $1,000,000 would equal $144,000 (in 2004 dollars), which exceeds the total income of 94 percent of households. Moreover, to the extent that the ta ...
... exceed their share of federal tax payments, so their share of the federal tax burden would decline. The annual tax cut among households with income above $1,000,000 would equal $144,000 (in 2004 dollars), which exceeds the total income of 94 percent of households. Moreover, to the extent that the ta ...
Capital Taxation During the US Great Depression
... Although there is no general agreement on the primary causes of the U.S. Great Depression— defined as both the sharp economic contraction in the early 1930s and the subsequent slow recovery—many do agree that fiscal policy played only a minor role. This conventional view is based on both empirical a ...
... Although there is no general agreement on the primary causes of the U.S. Great Depression— defined as both the sharp economic contraction in the early 1930s and the subsequent slow recovery—many do agree that fiscal policy played only a minor role. This conventional view is based on both empirical a ...
Peculiar Institutions: A British Perspective on Tax Policy
... higher levels than these since the early 1980s, resulting in a ratio of federal debt to GDP of 69 per cent in 1996. This is above the Maastricht figure of 60 per cent, and in that sense looks rather high. But it is by no means unprecedented even in the fiscal history of the US: the federal debt–GDP ...
... higher levels than these since the early 1980s, resulting in a ratio of federal debt to GDP of 69 per cent in 1996. This is above the Maastricht figure of 60 per cent, and in that sense looks rather high. But it is by no means unprecedented even in the fiscal history of the US: the federal debt–GDP ...
PDF - Urban Institute
... cuts expire in 2010. By 2014 the administration’s proposal would reduce revenues by $301 billion, or 1.6 percent of GDP. As discussed in Gale and Orszag (2004a), though, those revenue estimates understate the likely costs of making the tax cuts permanent because they do not make any long-term adjust ...
... cuts expire in 2010. By 2014 the administration’s proposal would reduce revenues by $301 billion, or 1.6 percent of GDP. As discussed in Gale and Orszag (2004a), though, those revenue estimates understate the likely costs of making the tax cuts permanent because they do not make any long-term adjust ...
Flat Income Tax Reforms
... second time when dividends are received by shareholders, which not only raises the overall tax burden but can also distort investment financing options of firms. With regard to labor supply and its quality, low tax rates and less progressive tax structures may tend to increase the participation of h ...
... second time when dividends are received by shareholders, which not only raises the overall tax burden but can also distort investment financing options of firms. With regard to labor supply and its quality, low tax rates and less progressive tax structures may tend to increase the participation of h ...
Judd
... and lifetime income. While it is not realistic to assume that people ignore future returns in making current savings choices since many investments, such as education, have predominately long-run returns, some may argue that this perfect foresight optimal growth model goes too far in the other direc ...
... and lifetime income. While it is not realistic to assume that people ignore future returns in making current savings choices since many investments, such as education, have predominately long-run returns, some may argue that this perfect foresight optimal growth model goes too far in the other direc ...
File - AP MACROECONOMICS
... A tax on capital income lowers the quantity of saving and investment and slows the growth rate of real GDP. The interest rate that influences saving and investment is the real after-tax interest rate. The real after-tax interest rate subtracts the income tax paid on interest income from the real int ...
... A tax on capital income lowers the quantity of saving and investment and slows the growth rate of real GDP. The interest rate that influences saving and investment is the real after-tax interest rate. The real after-tax interest rate subtracts the income tax paid on interest income from the real int ...
Options for the Goods and Services Tax
... taxes, the GST became another major tax adding to an already complex tax system. Furthermore, the federal government made the tax much more complex than needed by exempting some goods for fairness reasons and using arbitrary rules for the taxation of transportation, financial services and purchases ...
... taxes, the GST became another major tax adding to an already complex tax system. Furthermore, the federal government made the tax much more complex than needed by exempting some goods for fairness reasons and using arbitrary rules for the taxation of transportation, financial services and purchases ...
Political Institutions, State Building and Tax Capacity: Crossing
... Building tax capacity is closely linked to the process of economic development and growth. There is a long intellectual history behind this conception of the role of taxes and the state. Joseph Schumpeter, in his famous paper “The Crisis of the Tax State” (Schumpeter, 1918), links state and tax so c ...
... Building tax capacity is closely linked to the process of economic development and growth. There is a long intellectual history behind this conception of the role of taxes and the state. Joseph Schumpeter, in his famous paper “The Crisis of the Tax State” (Schumpeter, 1918), links state and tax so c ...
The Entrepreneur and the Making of Tax Laws
... public debt after World War I and the dissolution of the AustroHungarian Empire.2 Already in 1918 Schumpeter argued that an area he called fiscal sociology had great promise. However, fiscal sociology declined and for much of the twentieth century most historians, sociologists, legal scholars and po ...
... public debt after World War I and the dissolution of the AustroHungarian Empire.2 Already in 1918 Schumpeter argued that an area he called fiscal sociology had great promise. However, fiscal sociology declined and for much of the twentieth century most historians, sociologists, legal scholars and po ...
pse-michael 221693 en
... increased use of such distortionary property taxes and less reliance on non-distortionary ones (e.g., head tax) always reduces, globally and at the margin, the provision of such goods. For the case of providing public inputs to private production, the same result emerges so long as the perceived mar ...
... increased use of such distortionary property taxes and less reliance on non-distortionary ones (e.g., head tax) always reduces, globally and at the margin, the provision of such goods. For the case of providing public inputs to private production, the same result emerges so long as the perceived mar ...
Fiscal Rules and Countercyclical Policy: Frank Ramsey
... choose κ=0 and β=(r-λ)/(1+λ). Doing so also ensures both that (3) is satisfied without default and that the debt ratio b remains constant at permanent level bP. According to subsequent research (discussed later) this result holds only approximately if income is uncertain. Note also that this express ...
... choose κ=0 and β=(r-λ)/(1+λ). Doing so also ensures both that (3) is satisfied without default and that the debt ratio b remains constant at permanent level bP. According to subsequent research (discussed later) this result holds only approximately if income is uncertain. Note also that this express ...
Supply-side economics
Supply-side economics is a school of macroeconomics which argues that economic growth can be most effectively created by investing in capital, and by lowering barriers on the production of goods and services. According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices; furthermore, the investment and expansion of businesses will increase the demand for employees and therefore create jobs. Typical policy recommendations of supply-side economists are lower marginal tax rates and less regulation.The term ""supply-side economics"" was thought, for some time, to have been coined by journalist Jude Wanniski in 1975, but according to Robert D. Atkinson's Supply-Side Follies, the term ""supply side"" (""supply-side fiscalists"") was first used by Herbert Stein, a former economic adviser to President Nixon, in 1976, and only later that year was this term repeated by Jude Wanniski. Its use connotes the ideas of economists Robert Mundell and Arthur Laffer. Supply-side economics is likened by critics to ""trickle-down economics,"" a rhetorical term which is not an economic theory.The Laffer curve illustrates a central theory of supply-side economics, that lowering tax rates may have a positive impact on work, output, and employment and generate more government revenue than would otherwise be expected at the lower tax rate due to the tax cut's economic effect. However, the Laffer curve only measures the rate of taxation, not tax incidence, which is a stronger predictor of whether a tax code change is stimulative or dampening. In addition, studies have shown that tax cuts seldom recoup revenue losses and have minimal impact on GDP growth.