Why Can Modern Governments Tax So Much? An Agency Model of
... email: [email protected]. This paper is an output of the International Growth Centre (IGC). Additionally, financial support from NSF Grant SES-0850631 is gratefully acknowledged. ...
... email: [email protected]. This paper is an output of the International Growth Centre (IGC). Additionally, financial support from NSF Grant SES-0850631 is gratefully acknowledged. ...
Residential Utilities
... of the sales price and are taxable, except fees for the safe drinking water testing program mandated by federal law. Following are examples of associated charges that are taxable even if minimal or no services are consumed: ...
... of the sales price and are taxable, except fees for the safe drinking water testing program mandated by federal law. Following are examples of associated charges that are taxable even if minimal or no services are consumed: ...
PRINCIPLES of TAXATION
... • Tax on income reduces incentive to work • Work (& income) come at the cost of LEISURE (free time) • Everybody would like to have both income & leisure has to make a choice between the two • Principle of diminishing returns: The marginal value of both leisure & income falls with more of it • As o ...
... • Tax on income reduces incentive to work • Work (& income) come at the cost of LEISURE (free time) • Everybody would like to have both income & leisure has to make a choice between the two • Principle of diminishing returns: The marginal value of both leisure & income falls with more of it • As o ...
Lecture 12: Taxes
... markets for goods and services, taxes tend to reduce social surplus. But in general, economists prefer taxes to other kinds of intervention,… …because taxes lead to market-clearing* prices (*no excess demand or supply),… …and do not result in nonprice rationing. Therefore people with lower W ...
... markets for goods and services, taxes tend to reduce social surplus. But in general, economists prefer taxes to other kinds of intervention,… …because taxes lead to market-clearing* prices (*no excess demand or supply),… …and do not result in nonprice rationing. Therefore people with lower W ...
Progressive taxation and equal sacrifice
... experiences from his. This standard, like other standards of perfection, but the first object in every practical cannot be completely realized; discussion should be to know what perfection is.’ [J.S. Mill (1848, Book V, Chapter II)]. The equal sacrifice principle has often been invoked to justify sp ...
... experiences from his. This standard, like other standards of perfection, but the first object in every practical cannot be completely realized; discussion should be to know what perfection is.’ [J.S. Mill (1848, Book V, Chapter II)]. The equal sacrifice principle has often been invoked to justify sp ...
Theorem of Exchange
... [98/B2] The intersection of market demand and supply is said to determine the equilibrium market price. Explain why this is so without using the concepts of ‘surplus’ or ‘shortage’. (Hints: Think in terms of the theorem of exchange.) ...
... [98/B2] The intersection of market demand and supply is said to determine the equilibrium market price. Explain why this is so without using the concepts of ‘surplus’ or ‘shortage’. (Hints: Think in terms of the theorem of exchange.) ...
State Taxation of Internet Transactions
... The United States Bureau of the Census estimated that $4.1 trillion worth of retail and wholesale transactions were conducted over the Internet in 2010. That amount was 16.1% of all U.S. shipments and sales in that year. Other estimates, based on different data, projected the 2011 socalled e-commerc ...
... The United States Bureau of the Census estimated that $4.1 trillion worth of retail and wholesale transactions were conducted over the Internet in 2010. That amount was 16.1% of all U.S. shipments and sales in that year. Other estimates, based on different data, projected the 2011 socalled e-commerc ...
DOWNLOAD PAPER
... support for the progressivity of the optimal income tax than predicted by Edgeworth (1897)5 . The main feature of the results is that the optimal tax schedule depends on the distribution of skills within the population, and on the labor-consumption preferences of the population, in such a complicate ...
... support for the progressivity of the optimal income tax than predicted by Edgeworth (1897)5 . The main feature of the results is that the optimal tax schedule depends on the distribution of skills within the population, and on the labor-consumption preferences of the population, in such a complicate ...
PRINCIPLE OF ECONOMICS
... due to branding and labelling, and there are no barriers to entry and exit. ...
... due to branding and labelling, and there are no barriers to entry and exit. ...
The Marginal Cost of Funds from Public Sector Borrowing
... then the MCF will be very high because a tax rate increases generates relatively little additional tax revenue. In this model, the PVNR Laffer curve always has a positive slope, and the slope is increasing in the tax rate, if the intertemporal elasticity of substitution is less than one. This effec ...
... then the MCF will be very high because a tax rate increases generates relatively little additional tax revenue. In this model, the PVNR Laffer curve always has a positive slope, and the slope is increasing in the tax rate, if the intertemporal elasticity of substitution is less than one. This effec ...
lecture7_j_profit_revenu [režim kompatibility]
... MC = ∆TC/∆Q Comparing marginal revenue and marginal cost determines whether the firm needs to supply more or less in order to maximize profit. ...
... MC = ∆TC/∆Q Comparing marginal revenue and marginal cost determines whether the firm needs to supply more or less in order to maximize profit. ...
Business Tax Working Group Draft Final Report
... First, changes to depreciation arrangements could have a significant impact on the after-tax return on investment, particularly where there is a long lead time before income is produced (for instance, gas pipelines). Australia is currently experiencing an unprecedented level of investment, planned o ...
... First, changes to depreciation arrangements could have a significant impact on the after-tax return on investment, particularly where there is a long lead time before income is produced (for instance, gas pipelines). Australia is currently experiencing an unprecedented level of investment, planned o ...
Deficit Reduction and Carbon Taxes
... address the long-term budget deficit. It uses a newly developed dynamic general-equilibrium, overlapping-generations model of the US economy, combined with a more disaggregated model of near-term distributional impacts. We find that CO2 taxes can generate substantial revenues, $1.6 trillion to $3.6 ...
... address the long-term budget deficit. It uses a newly developed dynamic general-equilibrium, overlapping-generations model of the US economy, combined with a more disaggregated model of near-term distributional impacts. We find that CO2 taxes can generate substantial revenues, $1.6 trillion to $3.6 ...
Read the Full Report
... Given that Canadian provinces have virtually unfettered revenue-raising capabilities, why should there be a vertical fiscal imbalance at all? Can’t provinces just cut their spending and/or increase their own taxes to eliminate an imbalance? I will have more to say about this question below, but at t ...
... Given that Canadian provinces have virtually unfettered revenue-raising capabilities, why should there be a vertical fiscal imbalance at all? Can’t provinces just cut their spending and/or increase their own taxes to eliminate an imbalance? I will have more to say about this question below, but at t ...
Document
... Oligopoly markets are markets in which firms have some market power in setting prices, but not as much as a monopolist. ...
... Oligopoly markets are markets in which firms have some market power in setting prices, but not as much as a monopolist. ...
NBER WORKING PAPER SERIES OPTIMAL CAPITAL VERSUS LABOR TAXATION WITH INNOVATION-LED GROWTH
... already consist of income net of (labor income) tax; thus, taxing the revenues from savings amounts to taxing labor income twice, and it introduces unnecessary distortions in consumption versus saving decisions. Somewhat surprisingly, growth considerations do not play much of a role in this debate. ...
... already consist of income net of (labor income) tax; thus, taxing the revenues from savings amounts to taxing labor income twice, and it introduces unnecessary distortions in consumption versus saving decisions. Somewhat surprisingly, growth considerations do not play much of a role in this debate. ...
elasticity - Together We Pass
... – In elastic section of demand curve – a price decrease leads to an increase in total revenue – In inelastic section of demand curve – a price decrease leads to a decrease in total revenue ...
... – In elastic section of demand curve – a price decrease leads to an increase in total revenue – In inelastic section of demand curve – a price decrease leads to a decrease in total revenue ...
presentation
... All kinds of VAT exemptions reduce VAT tax base, give opportunity to tax evasion and violations. VAT 20% rate reassessment including rise and reduction of it is considered to be unacceptable. VAT differential rating are not acceptable because of difficulties of technical and administrative nature. E ...
... All kinds of VAT exemptions reduce VAT tax base, give opportunity to tax evasion and violations. VAT 20% rate reassessment including rise and reduction of it is considered to be unacceptable. VAT differential rating are not acceptable because of difficulties of technical and administrative nature. E ...
Does tax evasion modify the redistributive effect of tax progressivity?∗
... actual redistributive effect of the tax system depending on whether the coefficient of relative risk aversion is increasing, constant or decreasing with income, respectively. Therefore, Propositions 2 and 3 together suggest that a bias can emerge when we measure the redistributive effect of tax progress ...
... actual redistributive effect of the tax system depending on whether the coefficient of relative risk aversion is increasing, constant or decreasing with income, respectively. Therefore, Propositions 2 and 3 together suggest that a bias can emerge when we measure the redistributive effect of tax progress ...
Due Date: Friday, September 17th
... willing to forgo consumption now for a lot more consumption later. However, it is just as conceivable to have a NEGATIVELY sloped saving scheduled, where interest rate increases would actually decrease savings. This could happen if lenders have stronger income effects than substitution effects from ...
... willing to forgo consumption now for a lot more consumption later. However, it is just as conceivable to have a NEGATIVELY sloped saving scheduled, where interest rate increases would actually decrease savings. This could happen if lenders have stronger income effects than substitution effects from ...
Second-best optimal taxation of capital and labor in a developing
... We assume that the only feasible fiscal instruments are proportional taxes on the capital and labor incomes generated in the formal sector. We also assume that the government fixes the amount of revenue that it wants to raise and obtain the (second-best) optimal tax structures under two possible sce ...
... We assume that the only feasible fiscal instruments are proportional taxes on the capital and labor incomes generated in the formal sector. We also assume that the government fixes the amount of revenue that it wants to raise and obtain the (second-best) optimal tax structures under two possible sce ...
Tax Expenditures and the Federal Budget
... budgetary problems high on their list of economic problems facing the United States For example, Representatives Jim Cooper and Frank Wolf introduced the Securing America's Future Economy Commission Act (H.R. 3654), which would create a bipartisan commission to develop solutions to the long-term fed ...
... budgetary problems high on their list of economic problems facing the United States For example, Representatives Jim Cooper and Frank Wolf introduced the Securing America's Future Economy Commission Act (H.R. 3654), which would create a bipartisan commission to develop solutions to the long-term fed ...
Corporate Tax Evasion with Agency Costs
... a high effective tax rate is a sign of weakness. ‘A potential client once said he would hire the firm if we could get their tax rate down, because it was higher than their competitors' and they were embarrassed,’ says one accountant.”5 The idea of tax departments changing from being tolerated as nec ...
... a high effective tax rate is a sign of weakness. ‘A potential client once said he would hire the firm if we could get their tax rate down, because it was higher than their competitors' and they were embarrassed,’ says one accountant.”5 The idea of tax departments changing from being tolerated as nec ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... In the context of government finance, the idea of revenue diversification is similar to investment diversification. We may consider the various revenue sources or tax bases as a government’s investment portfolio and each tax as one of the securities in the portfolio. The variability of tax revenue i ...
... In the context of government finance, the idea of revenue diversification is similar to investment diversification. We may consider the various revenue sources or tax bases as a government’s investment portfolio and each tax as one of the securities in the portfolio. The variability of tax revenue i ...
Revenue Scenario under Customs Administration of Nepal (2064/65
... indirect tax and its administration is common to other poor developing countries. They suggested that both tax policies and the tax administration had to be reengineered. Furthermore, the work of Timisina(2007) had undertaken the analysis for the period ranging from 1975 to 2005 to ascertain the ta ...
... indirect tax and its administration is common to other poor developing countries. They suggested that both tax policies and the tax administration had to be reengineered. Furthermore, the work of Timisina(2007) had undertaken the analysis for the period ranging from 1975 to 2005 to ascertain the ta ...
Laffer curve
In economics, the Laffer curve is one possible representation of the relationship between rates of taxation and the hypothetical resulting levels of government revenue. The Laffer curve claims to illustrate the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation. It postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate where tax revenue would be a non-zero maximum.The Laffer curve is typically represented as a graph which starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate. The shape of the curve is uncertain and disputed.One potential result of the Laffer curve is that increasing tax rates beyond a certain point will be counter-productive for raising further tax revenue. A hypothetical Laffer curve for any given economy can only be estimated and such estimates are controversial. The New Palgrave Dictionary of Economics reports that estimates of revenue-maximizing tax rates have varied widely, with a mid-range of around 70%.Although economist Arthur Laffer does not claim to have invented the Laffer curve concept, it was popularized in the west with policymakers following an afternoon meeting with Ford Administration officials Dick Cheney and Donald Rumsfeld in 1974 in which he reportedly sketched the curve on a napkin to illustrate his argument. The term ""Laffer curve"" was coined by Jude Wanniski, who was also present at the meeting. The basic concept was not new; Laffer himself notes antecedents in the writings of the 14th century Arab Muslim social philosopher Ibn Khaldun.