flat taxes - Tax Foundation
... burden will increase too much on the lower earning, and therefore largest section of the population. Creating too high a tax burden will prevent the flat tax structure from reducing the taxpayers’ efforts to avoid and evade the tax structure. It will also fail to stimulate the labour supply as the ...
... burden will increase too much on the lower earning, and therefore largest section of the population. Creating too high a tax burden will prevent the flat tax structure from reducing the taxpayers’ efforts to avoid and evade the tax structure. It will also fail to stimulate the labour supply as the ...
MACRO ANALYSIS OF THE TAX SYSTEM AND INCLUSIVE
... the relative weight accorded to the “benefit” principle vis-à-vis the “ability to pay” principle in tax design. The benefit principle bases taxes to finance spending on public goods on the willingness of taxpayers to pay for the benefits received (as revealed through political collective choice mech ...
... the relative weight accorded to the “benefit” principle vis-à-vis the “ability to pay” principle in tax design. The benefit principle bases taxes to finance spending on public goods on the willingness of taxpayers to pay for the benefits received (as revealed through political collective choice mech ...
Economics: Explore and Apply 1/e by Ayers and Collinge Chapter
... productivity. The growth of computers in the workplace increases the productivity of labor. Throughout history, the economy has been revitalized again and again by technologies like the railroad, the automobile, radio, television, and now the computer and the Internet. ...
... productivity. The growth of computers in the workplace increases the productivity of labor. Throughout history, the economy has been revitalized again and again by technologies like the railroad, the automobile, radio, television, and now the computer and the Internet. ...
Optimal Fiscal Federalism in the Presence of Tax Competition
... We obtain a much stronger result: some decentralization of public goods provision is always preferable to complete centralization. To make this point, we use the Besley-Coate specification of centralized provision, but we replace their assumption of a single public good with many public goods, ther ...
... We obtain a much stronger result: some decentralization of public goods provision is always preferable to complete centralization. To make this point, we use the Besley-Coate specification of centralized provision, but we replace their assumption of a single public good with many public goods, ther ...
... integration of the personal and corporate income tax systems in the United States. We compare the resulting welfare gains in models with different levels of disaggregation, and we discuss alternative justifications for specific disaggregations. We also examine the sensitivity of results to alternati ...
mmi14-Marzano 19104679 en
... showing that tax and spending policies are important, but the ultimate goal should be to provide a stable environment in the medium and long run. The main findings of this paper can be summarized as follows. Government spending shocks have, in general, a positive effect on GDP, which becomes increas ...
... showing that tax and spending policies are important, but the ultimate goal should be to provide a stable environment in the medium and long run. The main findings of this paper can be summarized as follows. Government spending shocks have, in general, a positive effect on GDP, which becomes increas ...
flat tax reforms in estonia and slovakia as perspectives for croatian
... eliminates double taxation of saving. Efremidze (2007) adds that consumption taxation discourages consumption and stimulates saving. ...
... eliminates double taxation of saving. Efremidze (2007) adds that consumption taxation discourages consumption and stimulates saving. ...
July Massachusetts
... is widely recognized, real interest rates in the early 1980s were at peaks not witnessed since the late 1920s. Less well perceived is the sharp decline in real interest rates since 1984. By 1986—88, real interest rates were back at their average levels of the previous quarter century. This paper see ...
... is widely recognized, real interest rates in the early 1980s were at peaks not witnessed since the late 1920s. Less well perceived is the sharp decline in real interest rates since 1984. By 1986—88, real interest rates were back at their average levels of the previous quarter century. This paper see ...
Publisher_macro_ch_12_13th
... Alternative Views of Fiscal Policy • Keynesians stress the potency of fiscal policy and its use to maintain AD at a level consistent with full employment. • Others argue there are secondary effects of fiscal policy which undermine its effectiveness. • Critics also argue that Keynesian analysis ignor ...
... Alternative Views of Fiscal Policy • Keynesians stress the potency of fiscal policy and its use to maintain AD at a level consistent with full employment. • Others argue there are secondary effects of fiscal policy which undermine its effectiveness. • Critics also argue that Keynesian analysis ignor ...
Fiscal Policy Changes and Aggregate Demand in the US
... particular, it does not account for follow-on, or multiplier, effects that may result from the firstround changes in aggregate demand, nor does it capture possible supply-side reactions such as labor supply adjustments caused by a tax change. The FE methodology draws heavily from past work on discre ...
... particular, it does not account for follow-on, or multiplier, effects that may result from the firstround changes in aggregate demand, nor does it capture possible supply-side reactions such as labor supply adjustments caused by a tax change. The FE methodology draws heavily from past work on discre ...
Analysis of the long term effects of a company tax cut
... For a small open economy, such as Australia, its living standards (per capita income) are determined by the level of its terms of trade, labour productivity, labour force participation and population. Australia’s terms of trade, labour force participation and population growth are expected to be fla ...
... For a small open economy, such as Australia, its living standards (per capita income) are determined by the level of its terms of trade, labour productivity, labour force participation and population. Australia’s terms of trade, labour force participation and population growth are expected to be fla ...
Analysis of the long term effects of a company tax cut
... For a small open economy, such as Australia, its living standards (per capita income) are determined by the level of its terms of trade, labour productivity, labour force participation and population. Australia’s terms of trade, labour force participation and population growth are expected to be fla ...
... For a small open economy, such as Australia, its living standards (per capita income) are determined by the level of its terms of trade, labour productivity, labour force participation and population. Australia’s terms of trade, labour force participation and population growth are expected to be fla ...
Fiscal Policy Changes and Aggregate Demand in the U.S. Before
... particular, it does not account for follow-on, or multiplier, effects that may result from the firstround changes in aggregate demand, nor does it capture possible supply-side reactions such as labor supply adjustments caused by a tax change. The FE methodology draws heavily from past work on discre ...
... particular, it does not account for follow-on, or multiplier, effects that may result from the firstround changes in aggregate demand, nor does it capture possible supply-side reactions such as labor supply adjustments caused by a tax change. The FE methodology draws heavily from past work on discre ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... increase the supply of labor somewhat but that the increases are very modest. Traditional theory suggests that a huge tax cut will lead to an increase in disposable income and, in turn, an increase in consumption spending (a component of aggregate expenditure). Although an increase in planned invest ...
... increase the supply of labor somewhat but that the increases are very modest. Traditional theory suggests that a huge tax cut will lead to an increase in disposable income and, in turn, an increase in consumption spending (a component of aggregate expenditure). Although an increase in planned invest ...
Macroeconomic Effects from Government Purchases and Taxes
... takes on values between -1.0% and -1.2% between 1940 and 1943 and then between 0.8% and 1.6% from 1946 to 1949. This broad pattern applies also to World War I, but the precise timing is puzzling. The most negative value for the non-defense purchases variable is -3.5% in 1919 (after the Armistice of ...
... takes on values between -1.0% and -1.2% between 1940 and 1943 and then between 0.8% and 1.6% from 1946 to 1949. This broad pattern applies also to World War I, but the precise timing is puzzling. The most negative value for the non-defense purchases variable is -3.5% in 1919 (after the Armistice of ...
Fiscal Policy
... Fiscal Policy Multipliers Automatic fiscal policy is a change in fiscal policy caused by the state of the economy; discretionary fiscal policy is a policy action initiated by an act of Congress. Lump-sum taxes are taxes that do not change when real GDP changes. ♦ The government purchases multiplie ...
... Fiscal Policy Multipliers Automatic fiscal policy is a change in fiscal policy caused by the state of the economy; discretionary fiscal policy is a policy action initiated by an act of Congress. Lump-sum taxes are taxes that do not change when real GDP changes. ♦ The government purchases multiplie ...
To Read the Full Report - Peter G. Peterson Foundation
... AAF modestly increases nominal spending for both defense and nondefense discretionary programs above current law levels over the next ten years. However, as a share of GDP, total spending on discretionary programs declines from 6.5 percent of GDP in 2015 to 5.4 percent of GDP in 2024 and remains at ...
... AAF modestly increases nominal spending for both defense and nondefense discretionary programs above current law levels over the next ten years. However, as a share of GDP, total spending on discretionary programs declines from 6.5 percent of GDP in 2015 to 5.4 percent of GDP in 2024 and remains at ...
The impact of fiscal policy on the business cycle
... the manner described above. For example, credit constrained consumers are likely to increase their consumption in response to a tax cut, even if they are forward-looking. To summarise, since the work of Keynes, macroeconomic analysis has provided a number of reasons why the impact of fiscal policy o ...
... the manner described above. For example, credit constrained consumers are likely to increase their consumption in response to a tax cut, even if they are forward-looking. To summarise, since the work of Keynes, macroeconomic analysis has provided a number of reasons why the impact of fiscal policy o ...
New York State`s Economic and Fiscal Challenges
... year the state moved to hire more highway design engineers and to reduce the use of outside consultants for this work. The state needs to move in the same direction for computer programming and other professional services. FPI has estimated that this could save $500 million over the next three years ...
... year the state moved to hire more highway design engineers and to reduce the use of outside consultants for this work. The state needs to move in the same direction for computer programming and other professional services. FPI has estimated that this could save $500 million over the next three years ...
Quebec`s tax competitiveness: A barrier to prosperity
... The research has also assessed the impact of different forms of taxation—including personal income taxes, corporate income taxes, and payroll taxes—and found that, while their economic effects may differ to a certain extent, all of them carry economic costs.6 American economists David Romer and Chri ...
... The research has also assessed the impact of different forms of taxation—including personal income taxes, corporate income taxes, and payroll taxes—and found that, while their economic effects may differ to a certain extent, all of them carry economic costs.6 American economists David Romer and Chri ...
... Considerations for cost-benefit analyses of film tax credits There are various challenges inherent in performing cost-benefit analyses of film tax credits. We will next discuss some key considerations for an analyst attempting to evaluate Connecticut’s film credit. First, it is important to note tha ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Role of Selected Important Characteristics of Tax Policy Incentives to Save and Invest. The fact that income taxes have not contributed significantly to tax revenue reflects the tax incentives given through the income tax system. Until 1981, there was an unlimited exclusion of both interest and divi ...
... Role of Selected Important Characteristics of Tax Policy Incentives to Save and Invest. The fact that income taxes have not contributed significantly to tax revenue reflects the tax incentives given through the income tax system. Until 1981, there was an unlimited exclusion of both interest and divi ...
How Buoyant is the Tax System?
... counting that the ensuing income would raise enough revenues to keep the fiscal balance from deteriorating over the long run. However, several economies have not been able to mobilize revenues through taxation to the same extent as spending went up and, therefore, resorted to internal and external b ...
... counting that the ensuing income would raise enough revenues to keep the fiscal balance from deteriorating over the long run. However, several economies have not been able to mobilize revenues through taxation to the same extent as spending went up and, therefore, resorted to internal and external b ...
If, When, How: A Primer on Fiscal Stimulus
... distributed in the second quarter to households that are likely to spend much of their extra income, would boost the level of GDP by about 0.5 percent during the second and third quarters of the year. Thus, true fiscal stimulus implemented promptly can provide a larger near-term impetus to economic ...
... distributed in the second quarter to households that are likely to spend much of their extra income, would boost the level of GDP by about 0.5 percent during the second and third quarters of the year. Thus, true fiscal stimulus implemented promptly can provide a larger near-term impetus to economic ...
CHAPTER 19: Debates in Macroeconomics: Monetarism, New
... Laffer Curve With the tax rate measured on the vertical axis and tax revenue measured on the horizontal axis, the Laffer Curve shows there is some tax rate beyond which the supply response is large enough to lead to a decrease in tax revenue for further increases in the tax rate. ...
... Laffer Curve With the tax rate measured on the vertical axis and tax revenue measured on the horizontal axis, the Laffer Curve shows there is some tax rate beyond which the supply response is large enough to lead to a decrease in tax revenue for further increases in the tax rate. ...
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.