The Concept of Neutrality in Tax Policy
... The primary purpose of the tax system is to raise the revenue needed to pay for government spending. As such, the goal is to raise this revenue without distorting the decisions that individuals and firms would otherwise make for purely economic reasons. For example, an efficient economic system peop ...
... The primary purpose of the tax system is to raise the revenue needed to pay for government spending. As such, the goal is to raise this revenue without distorting the decisions that individuals and firms would otherwise make for purely economic reasons. For example, an efficient economic system peop ...
Defending the Articles of Confederation: A Reply to
... is that my data include the value of all requisitions (including in-kind requisitions) and not just monetary requisitions as his data does. In fact, his own data on troop requisitions show a cooperation rate by the states of over 50 percent. But nonetheless, our difference is only about 9% which sho ...
... is that my data include the value of all requisitions (including in-kind requisitions) and not just monetary requisitions as his data does. In fact, his own data on troop requisitions show a cooperation rate by the states of over 50 percent. But nonetheless, our difference is only about 9% which sho ...
Price
... Non-rivalrous consumption: Good or service can be used by one person without detracting from the ability of other to use it Non-excludability: Impossible or impractical to exclude some people from enjoying the benefits of a good service, even if they are unwilling to pay for it ...
... Non-rivalrous consumption: Good or service can be used by one person without detracting from the ability of other to use it Non-excludability: Impossible or impractical to exclude some people from enjoying the benefits of a good service, even if they are unwilling to pay for it ...
How Do Laffer Curves Differ Across Countries? BFI Working Paper Series No. 2012-001 Mathias Trabandt
... for the permanent sustainability of current debt levels, when interest rates are permanently high e.g. due to default fears. We build on the analysis in Trabandt and Uhlig (2011). There, we have characterized Laffer curves for labor and capital taxation for the U.S., the EU-14, and individual Europe ...
... for the permanent sustainability of current debt levels, when interest rates are permanently high e.g. due to default fears. We build on the analysis in Trabandt and Uhlig (2011). There, we have characterized Laffer curves for labor and capital taxation for the U.S., the EU-14, and individual Europe ...
tax incentives in the peruvian amazon: net gain or net loss?
... been effective since i) the region’s percentage on national GDP has not been altered despite the generous incentives; ii) other regions outside the target zone have experienced higher growth rates than the beneficiary areas; and, iii) poverty rates remain high and, on average, one of every two ...
... been effective since i) the region’s percentage on national GDP has not been altered despite the generous incentives; ii) other regions outside the target zone have experienced higher growth rates than the beneficiary areas; and, iii) poverty rates remain high and, on average, one of every two ...
The AS-AD Model
... the general price level P • For any given level of money supply M, an increase in P implies that the real supply of money M/P must go down. It becomes harder for people to borrow money, causing the price of loans, i.e., the interest rate r to go up. When interest increases, investment demand (and po ...
... the general price level P • For any given level of money supply M, an increase in P implies that the real supply of money M/P must go down. It becomes harder for people to borrow money, causing the price of loans, i.e., the interest rate r to go up. When interest increases, investment demand (and po ...
Physics - Virginia Community College System
... This figure begins with the same marginal revenue and marginal cost curves from the HealthPill monopoly presented in Figure 9.5. It then adds an average cost curve and the demand curve faced by the monopolist. The HealthPill firm first chooses the quantity where MR = MC; in this example, the quantit ...
... This figure begins with the same marginal revenue and marginal cost curves from the HealthPill monopoly presented in Figure 9.5. It then adds an average cost curve and the demand curve faced by the monopolist. The HealthPill firm first chooses the quantity where MR = MC; in this example, the quantit ...
Tanzi
... higher tax burden. When the additional revenue is wasted in projects with low economic productivity, or in expenditures with low social justification, one should not praise the governments for the extra fiscal efforts. In these circumstances it would have been better to leave the money in the hands ...
... higher tax burden. When the additional revenue is wasted in projects with low economic productivity, or in expenditures with low social justification, one should not praise the governments for the extra fiscal efforts. In these circumstances it would have been better to leave the money in the hands ...
The Effects on Equity of an Increase in the Value
... fers are exogenous to the individual household. The anonymity of households implies that the government is not able to raise revenue (or make transfers) designed for a special individual i . Discriminatory lump-sum taxes and transfers are therefore excluded from the tax code. ...
... fers are exogenous to the individual household. The anonymity of households implies that the government is not able to raise revenue (or make transfers) designed for a special individual i . Discriminatory lump-sum taxes and transfers are therefore excluded from the tax code. ...
Guidelines for tax reform in Canada
... profit margin on these sales may often be very modest. As well, under the current system, imports are taxed roughly one-third less than comparable domestic goods. By moving to a broad-based business transfer tax, these biases that hurt us abroad and at home can be removed. ...
... profit margin on these sales may often be very modest. As well, under the current system, imports are taxed roughly one-third less than comparable domestic goods. By moving to a broad-based business transfer tax, these biases that hurt us abroad and at home can be removed. ...
indifference_curve_approach
... a fall in the price of the commodity • Substitution Effect = tendency to substitute cheaper goods for the more expensive one • Income effect causes a movement along the ICC which has a positive slope • Substitution effect causes a movement along the PCC which has a negative slope ...
... a fall in the price of the commodity • Substitution Effect = tendency to substitute cheaper goods for the more expensive one • Income effect causes a movement along the ICC which has a positive slope • Substitution effect causes a movement along the PCC which has a negative slope ...
Government Intervention & Market Failure
... • Supply curves might change elasticity due to – availability of materials - The limited availability of raw materials could limit the amount of a product that can be produced. – length and complexity of product - If the product is complex to manufacture, it becomes more inelastic – time to respond ...
... • Supply curves might change elasticity due to – availability of materials - The limited availability of raw materials could limit the amount of a product that can be produced. – length and complexity of product - If the product is complex to manufacture, it becomes more inelastic – time to respond ...
Why has the UK corporation tax raised so much revenue?
... measures the proportionate increase in the cost of capital due to taxation. It is calculated by applying the rules of the tax regime to a hypothetical investment project. 10 However, although the EMTR is widely reported in the economics literature, and we also present estimates below, it is not clo ...
... measures the proportionate increase in the cost of capital due to taxation. It is calculated by applying the rules of the tax regime to a hypothetical investment project. 10 However, although the EMTR is widely reported in the economics literature, and we also present estimates below, it is not clo ...
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
... basis for distributing the tax burden in a specific manner. This theory overlooks the possible use of the tax policy for bringing about economic growth or economic stabilization in the country. According to Ariyo (1997) Nigeria’s over dependence on oil revenue to the total neglect of other revenue s ...
... basis for distributing the tax burden in a specific manner. This theory overlooks the possible use of the tax policy for bringing about economic growth or economic stabilization in the country. According to Ariyo (1997) Nigeria’s over dependence on oil revenue to the total neglect of other revenue s ...
Market Imperfections - (Welch, Chapter 11)
... student) loan and to keep money in a savings account? Not usually. You are usually better off paying off your loans—and, of course, when it comes to credit card with their high interest rates, the answer is even more obvious. Some people argue about the tax advantages of the mortgage or student loan ...
... student) loan and to keep money in a savings account? Not usually. You are usually better off paying off your loans—and, of course, when it comes to credit card with their high interest rates, the answer is even more obvious. Some people argue about the tax advantages of the mortgage or student loan ...
School of Taxation and Business Law (ATAX)
... •Tax complexity as a tax has short-term, multiplier effect as it flows through the economy •TCC and indirect costs have negative effects on GDP while TAC has a positive effect. •MCTC = mTTCC + mI I mG TAC MCTC = Macroeconomic costs of tax complexity; mT, mI, mG = Tax, Investment and Government ...
... •Tax complexity as a tax has short-term, multiplier effect as it flows through the economy •TCC and indirect costs have negative effects on GDP while TAC has a positive effect. •MCTC = mTTCC + mI I mG TAC MCTC = Macroeconomic costs of tax complexity; mT, mI, mG = Tax, Investment and Government ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... In particular, we are able to consider the effect of tax changes on a population that is the same size as the initial population. If we were to include the utility of additional individuals in later years, our welfare measure would be weighted in favor of future periods. When all endowments and inco ...
... In particular, we are able to consider the effect of tax changes on a population that is the same size as the initial population. If we were to include the utility of additional individuals in later years, our welfare measure would be weighted in favor of future periods. When all endowments and inco ...
Buoyancy of Georgia`s Sales and Use Tax
... fiscal policy for state and local governments and for betterinformed decision making. The FRC, one of several prominent policy research centers and academic departments housed in the School of Policy Studies, has a full-time staff and affiliated faculty from throughout Georgia State University and e ...
... fiscal policy for state and local governments and for betterinformed decision making. The FRC, one of several prominent policy research centers and academic departments housed in the School of Policy Studies, has a full-time staff and affiliated faculty from throughout Georgia State University and e ...
Lab 17: Consumer and Producer Surplus
... When we assume that all consumers pay the equilibrium price peq , there are consumers who are paying less that they were willing to pay. If each consumer bought the commodity at the maximum price they were willing to pay, the total amount spent is represented by the area under the demand curve from ...
... When we assume that all consumers pay the equilibrium price peq , there are consumers who are paying less that they were willing to pay. If each consumer bought the commodity at the maximum price they were willing to pay, the total amount spent is represented by the area under the demand curve from ...
Chapter 11
... Shifting When one good is taxed and another good is not taxed, the impact of the tax is not confined to the taxed good. Because a tax on one good lowers the profit that can be made to firms producing it, they may shift their productive resources to the other good so as to maximize their after-ta ...
... Shifting When one good is taxed and another good is not taxed, the impact of the tax is not confined to the taxed good. Because a tax on one good lowers the profit that can be made to firms producing it, they may shift their productive resources to the other good so as to maximize their after-ta ...
Slides
... i. All agents gain from trade, although these gains are not proportionally distributed; ii. Inequality of relative revenues and utilities is higher in an open economy than in autarky given that some agents do not export; iii. Falling trade costs first increase and then decrease inequality. • Replica ...
... i. All agents gain from trade, although these gains are not proportionally distributed; ii. Inequality of relative revenues and utilities is higher in an open economy than in autarky given that some agents do not export; iii. Falling trade costs first increase and then decrease inequality. • Replica ...
Title should be one sentence summary to
... In the context of the expected growth of the economy, the impact of the tax on GDP is small The average annual growth rate of the economy is expected to be 0.15 percentage points lower, leading to GDP in 2035 being 3 per cent lower than in the baseline ...
... In the context of the expected growth of the economy, the impact of the tax on GDP is small The average annual growth rate of the economy is expected to be 0.15 percentage points lower, leading to GDP in 2035 being 3 per cent lower than in the baseline ...
Econ 101: Principles of Microeconomics
... Tax Source Federal ($billion) State and local ($billion) Income ...
... Tax Source Federal ($billion) State and local ($billion) Income ...
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.