Evaluating Japan's Corporate Income Tax Reform using Firm-specific Effective Tax Rates

Purpose The purpose of this paper is to investigate how Chinese firms’ ownership structure is related to their effective tax rate. The People’s Republic of China provides an interesting environment to examine the corporate income tax. Government has significant ownership stakes in the for-profit economy and state-owned enterprises (SOEs) are liable to the corporate income tax. This is very different to most other economies where SOE tends to dominate the not-for-profit economy and pays no corporate income tax. Government ownership also varies between the central government and local government in addition to state asset management bureaus. This provides a rich institutional background to examining the corporate income tax. Design/methodology/approach A panel data analysis approach is used to examine relationship between ownership structure and effective tax rates of all public firms in China from 1999 to 2009. Findings The authors report that effective tax rates do appear to vary across the ownership types, but that SOEs pay a statistically higher effective tax rate than to non-state-owned. In addition, local government owned SOE pay higher effective tax rates than central government and SAMB owned SOE. The authors also investigate Zimmerman’s (1983) political cost hypothesis. Unfortunately, these results are econometrically fragile with the statistical significance of those results varying by empirical technique. Originality/value This paper provides insight into government ownership and taxation in China.

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Structural Confinement vs. Policy Choices: The Ideological and Competitive Causes of Corporate Income Tax Reform

SSRN Electronic Journal ◽

10.2139/ssrn.2422312 ◽

2013 ◽

Author(s):

Arpad A Todor

Keyword(s):

Income Tax ◽

Tax Reform ◽

Corporate Income Tax ◽

Policy Choices ◽

Income Tax Reform

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The Wage Response to a Reduction in Income Tax Rates: The Israeli Tax Reform

The B E Journal of Economic Analysis & Policy ◽

10.1515/bejeap-2019-0043 ◽

2020 ◽

Vol 20 (2) ◽

Author(s):

Roni Frish ◽

Noam Zussman ◽

Sophia Igdalov

Keyword(s):

Income Tax ◽

Tax Reform ◽

Tax Rates ◽

Rate Reduction ◽

Or Education ◽

Marginal Tax Rate ◽

Tax Rate ◽

Percentage Points ◽

Wage Earners ◽

Income Tax Reform

AbstractThis study examines the effect of an income tax reform on wages. An Israeli reform implemented in 2003–2009 reduced individuals’ marginal income tax rate by 7–17 percentage points. We utilized the differential and non-monotonic marginal tax rate reduction, and used Israel Tax Authority panel data of wage earners, merged with Labor Force Surveys. We found that in the business sector, the elasticity of reported gross wages relative to the net-of-tax rate is about 0.1. The wage earners in the lowest wage quintile were not affected by the tax reform, those in the second and third quintiles did not respond to the tax cut, but elasticity increased with wage, reaching about 0.4 in the upper decile. We did not find statistically significant differences in elasticity by gender, ethnicity, or education.

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