Tax Reform, Capital Allocation and Welfare Gains in Norway

1991 ◽  
pp. 29-45
Author(s):  
Erik Offerdal
Keyword(s):  
Tax Reform ◽  
Capital Allocation ◽  
Welfare Gains

Tax reform, capital allocation and welfare gains in Norway

De Economist ◽  
1991 ◽  
Vol 139 (2) ◽  
pp. 169-185
Author(s):  
Erik Offerdal
Keyword(s):  
Tax Reform ◽  
Capital Allocation ◽  
Welfare Gains

PREANNOUNCED OPTIMAL TAX REFORM

2005 ◽  
Vol 9 (2) ◽  
pp. 150-169 ◽  
Author(s):  
DAVID DOMEIJ ◽  
PAUL KLEIN
Keyword(s):  
Steady State ◽  
Fiscal Policy ◽  
Tax Reform ◽  
The Other ◽  
Welfare Gain ◽  
Welfare Gains ◽  
Optimal Tax ◽  
Other Hand ◽  
Optimal Fiscal Policy ◽  
Implementation Lag

In constitutional democracies, laws take time to be deliberated upon, to be passed, and to be implemented. Motivated by this observation, we study the properties of optimal tax reform when it has to be announced in advance of its implementation. We find that a delay between announcement and implementation has large effects on the optimal fiscal policy during the transition to the new steady state. On the other hand, we find that the welfare gains from optimal tax reform are fairly robust to the introduction of an implementation lag. Increasing the lag from zero to four years reduces the welfare gains by less than a quarter. Moreover, it turns out that this reduction of the welfare gain is mainly due to the delay itself rather than the effect of preannouncement on the character of the optimal tax reform.

scholarly journals Regional Aspects of a Climate and Energy Tax Reform in Norway—Exploring Double and Multiple Dividends

2018 ◽  
Vol 10 (11) ◽  
pp. 4175
Author(s):  
Ulf Johansen ◽  
Gerardo Perez-Valdes ◽  
Adrian Werner
Keyword(s):  
Computable General Equilibrium ◽  
Tax Reform ◽  
National Policy ◽  
Computable General Equilibrium Model ◽  
Environmental Taxes ◽  
Welfare Gains ◽  
Payroll Taxes ◽  
Wage Formation ◽  
Policy Goals ◽  
Energy Tax

We investigate the potential for double or even multiple dividends arising from a climate and energy tax reform (CETR), using a regional computable general equilibrium model. Such dividends indicate if government revenues raised from energy-related environmental taxes and recycled back to households or industries through (regional) social security contributions will yield welfare gains larger than gross cost. Building on existing double dividend theory, we broaden the scope by considering both social and regional aspects of a CETR. We explore the use of household transfers and regional payroll taxes as recycling instruments and investigate to what extent wage formation on the labor market has an effect. For Norway, our results indicate that a CETR may conflict with sub-national policy goals under all assessed scenarios. In particular, this holds for income inequality. Although our analysis concerns the social, economic and environmental aims of a Norwegian policy, the approach can be generalized to, e.g., a European context.

scholarly journals The Tax Reform Act of 1986 and the Cost of Capital

1987 ◽  
Vol 1 (1) ◽  
pp. 73-86 ◽  
Author(s):  
Alan J Auerbach
Keyword(s):  
Tax Reform ◽  
Major Change ◽  
The United States ◽  
Capital Allocation ◽  
Investment Incentives ◽  
Tax Structure ◽  
Business Investment ◽  
Tax Revenues ◽  
The Cost ◽  
The Relationship

The broad outlines of the recently passed Tax Reform Act of 1986 suggest a shift in the tax burden toward business. Over the five-year period 1987-1991, corporate tax revenues are projected to increase by $120.3 billion with individual tax revenues declining by $121.9 billion. It is natural to conclude that business investment in plant and equipment will be discouraged by this shift. Yet the relationship between tax revenues and investment incentives is a complicated one, particularly when the change in business tax revenues is accompanied by a major change in the tax structure producing these revenues. This paper's primary aim is to discuss the channels through which this major change in the tax structure will affect the incentives for business investment. Among the related questions discussed are the law's impact on the efficiency of capital allocation; corporate debt-equity ratios; corporate mergers and takeovers; tax shelter activity and the nonpayment of taxes by individuals and corporations; the strength of foreign investment in the United States; and the market value of the equity shares of U.S. corporations.

Continuity and Innovations in Tax Reform

2015 ◽  
pp. 39-58
Author(s):  
Giuseppe Dallera
Keyword(s):  
Tax Reform
Sign in / Sign up

Export Citation Format

Share Document