Wine Taxes, Production, Aging and Quality

2009 ◽  
Vol 4 (1) ◽  
pp. 27-45 ◽  
Author(s):  
Rachael E. Goodhue ◽  
Jeffrey T. LaFrance ◽  
Leo K. Simon
Keyword(s):  
Full Range ◽  
Prima Facie ◽  
Jel Classification ◽  
Wine Industry ◽  
Sales Tax ◽  
Tax System ◽  
Tax Revenues ◽  
Tax Systems ◽  
The Impact ◽  
Ad Valorem

AbstractWe consider the impact of taxes on the quantity and quality produced by a competitive firm of goods, such as wine, for which market value accrues with age. Our analysis found the following: an increase in the volumetric retail tax collected at sale increases quality, so that the basic Alchian-Allen effect holds. However, an increase in the volumetric storage tax collected each period decreases quality, as does an increase in the ad valorem storage tax. The effect of an increase in the ad valorem retail tax on quality is indeterminate. Increases in any of the four taxes reduce the quantity of wine produced. Any two-tax system that includes a volumetric sales tax spans the full range of feasible tax revenues with positive tax rates. For any tax system that reduces quality relative to the firm's no-tax equilibrium, there is another tax system that increases tax revenues, eliminates the quality distortion, and does not increase the quantity distortion. Many wine industry observers believe that most, if not all, existing tax systems tend to result in the suboptimal provision of quality. Our results suggest that the wide variety of wine tax systems is not prima facie evidence that these systems, or most of them, are inefficient. Provided the system includes a volumetric sales tax it may be efficient, regardless of which of the other instruments, or how many of them, are used. Assertions regarding inefficiency must be evaluated on an empirical case-by-case basis. Our analysis provides a theoretical framework for such research. (JEL Classification: D2, H2, Q1)

scholarly journals The Impact of The Tax System Structure on The Narrowing of Income Disparities in OECD Countries

e-Finanse ◽  
2016 ◽  
Vol 12 (3) ◽  
pp. 27-37
Author(s):  
Małgorzata Mazurek-Chwiejczak
Keyword(s):  
Slovak Republic ◽  
Oecd Countries ◽  
System Structure ◽  
The European Union ◽  
Full Data ◽  
Tax System ◽  
Tax Revenues ◽  
Income Disparities ◽  
Tax Systems ◽  
The Impact

Abstract Social disparities have a common and consistent character in the vast majority of contemporary countries. The level of income inequality in OECD countries has grown in the past 30 years and is still rising. Taxes and tax systems, aside from social transfers, are fiscal instruments widely used in compensation policy.The aim of the article is to define the optimal structure of tax systems (i.e. the share of different tax categories in tax revenues) in terms of narrowing income disparities. To achieve this aim, scatter diagrams have been used. For the purpose of the article a tentative hypothesis has been formulated that the optimal tax system in terms of narrowing income disparities is characterised by a relatively large share of Personal Income Tax and at the same time a relatively low share of consumption taxes in tax revenues. The detailed analysis is focused on the countries for which the full data is available. The group of countries covers some “old” member states of the European Union (Austria, Belgium, Finland, Greece, Ireland, Italy, Luxembourg and the United Kingdom), the South- -East European countries (the Czech Republic, Estonia, Poland, the Slovak Republic and Slovenia) as well as non-EU countries (Canada and Iceland). These countries represent different levels of socio-economic development and, as a result, the variety of situations concerning the distribution of income.

The tax system of the Russian Federation and its characteristics

2018 ◽  
Author(s):  
Марина Малкина ◽  
Marina Malkina ◽  
Родион Балакин ◽  
Rodion Balakin
Keyword(s):  
Risk Assessment ◽  
Russian Federation ◽  
Academic Community ◽  
Relative Level ◽  
Tax System ◽  
Tax Revenues ◽  
Comparative Risk ◽  
The Russian Federation ◽  
Tax Systems ◽  
The Impact

The monograph discusses theoretical, methodological and practical approaches to the assessment of the properties of tax systems. The theories and concepts of taxes, as well as empirical approaches to modeling the relationship between the parameters of the tax and economic system of the country are studied. On the example of the tax system of the Russian Federation in 2006-2017 such properties of tax systems as profitability, uniformity of taxation and risk are investigated in dynamics. The method of assessment of uneven taxation is proposed, on the basis of which the contribution of individual taxes and industries to interregional differences in the level of tax return in the Russian Federation is determined. The method of risk assessment and decomposition of the tax system using the portfolio approach of G. Markowitz and U. Sharpe is proposed. The application of this technique allowed to determine the contribution of different taxes, industries and regions to the risk of the tax system of the country and its regions, as well as to conduct a comparative risk assessment of tax systems of the Russian Federation in the distribution of tax revenues between the three levels of the budget system. The paper also proposes and tested a method of factor analysis of tax revenues in the Russian Federation, which allowed to assess the impact of inflation, economic growth, the overall level of tax return and its relative level in the regions on the growth of tax revenues in the Russian Federation and its subjects in 2006-2016. The monograph is of interest to the scientific and academic community, government and business.

scholarly journals The Tax Revenue in Iraq Between the Efficiency of Tax Administration and the Elements of the Success of the Tax System

2017 ◽  
Vol 1 (2) ◽  
pp. 53-73
Author(s):  
.Mohamed Helou Daoud Al-Khorsan ◽  
Hana Ali Hussein Al-Quraishi ◽  
Ziad Taher Mohamed Ali
Keyword(s):  
Fiscal Policy ◽  
Tax Revenue ◽  
Tax Administration ◽  
State Budget ◽  
Tax System ◽  
Economic Changes ◽  
Tax Revenues ◽  
Political Ideas ◽  
Modest Contribution ◽  
The Impact

There is growing interest by governments in different systems of government in which political ideas which it believes, taxes as instruments of fiscal policy, seeking to achieve through which political, social and economic goals as well as "financial targets, as the tax policy formulated objectives and plans its revenues consistently and harmony with the objectives of economic policy in general, In the context of the tax reform, different countries have resorted to the search for possible alternatives to maintain a financially, economically and socially effective fiscal policy. Iraq should not be different from these countries. It establishes a fiscal policy to achieve tax revenues by activating the role of the tax system to strengthen the budget in the light of economic changes and financial crises in recent years, The main reason for the need to activate the tax system in Iraq is the very modest contribution of tax revenues within the state budget, To address the reasons for the low contribution of tax revenues it is necessary to identify the elements of the success of the tax system and discuss the tax revenue in two aspects The level of general headquarters and branches on the one hand, and knowledge the facilities or obstacles which is provided by the tax system   to increase the proceeds of the receipt of the other, and finally reach the reform of the tax system, which we find an important requirement for the reform of the Iraqi financial and economic system in this time, In this context, the study deals with the tax revenues in Iraq as planned by the tax administration in accordance with the statistics of the tax administration and then identify the impact of the tax system in making the proceeds low for public revenues.

scholarly journals Opportunities for Simplification in the Personal Income Tax Systems of the Visegrad Countries

2020 ◽  
Vol 65 (4) ◽  
pp. 531-553
Author(s):  
Éva Bonifert Szabóné
Keyword(s):  
Income Tax ◽  
Policy Instruments ◽  
Degree Of Approximation ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
It Use ◽  
Tax System ◽  
Tax Systems ◽  
The Impact

Due to the numerous factors that can influence the impact of the tax system and redistribution, there is no single correct answer to the question of which composition of economic policy instruments needs to be applied to achieve a desired redistributive effect. The general aim of the study is to investigate in relation to the quantifiable parameters of income tax systems, whether the consideration of the aspects of fairness and justice does have an excessively negative effect on the simplicity of tax systems. The study investigates the possibilities of simplifying the personal income tax system’s composition in some Central and Eastern European countries, while tax burden curves of the system remain as constant as possible. To this end, the study sets up a theoretical, simplified tax model, the parameters of which are determined by a computer program, in order to generate tax burden curves corresponding most closely to the curves of the real tax system. Based on the analysis, it can be established that the theoretical system – in some cases with restrictions – provides a good approximation to the tax burden curves of the investigated countries. The chosen simple model has a good degree of approximation to a real system that does not have significant breakpoints in its tax burden curves, nor does it use a taxation method that fundamentally modifies the system (e.g., splitting). Practical examples help to understand that a complex personal income tax system in a given country is not necessarily the only possible solution to achieve a given tax burden curve, the function may be reproduced with a good approximation constructed from simpler basic elements.

The Effect of Political Affiliation on Taxpayers' Attitudes Toward Alternative Tax Systems

2000 ◽  
Vol 22 (1) ◽  
pp. 111-128 ◽  
Author(s):  
John R. McGowan
Keyword(s):  
Telephone Survey ◽  
Current System ◽  
Sales Tax ◽  
Political Affiliation ◽  
Persuasive Messages ◽  
Tax System ◽  
Flat Tax ◽  
Self Interest ◽  
Perceived Equity ◽  
Tax Systems

There is a great deal of dissatisfaction with the existing tax system. Prior research has found that self-interest, perceived equity, persuasive messages, tax knowledge, and demographic factors affect taxpayer attitudes. This study contributes to that body of research by examining the effects of another factor that is associated with taxpayer attitudes: their political affiliation. Data obtained from a national telephone survey of homeowners' attitudes toward alternative tax systems are used. Results indicate that political affiliation plays a significant role in taxpayers' attitudes toward both alternative tax systems in general and the proposed flat tax in particular. Specifically, when faced with the choice of alternative tax systems, respondents who identified themselves as having Republican (Democratic, Independent) political af-filiations were more (less) likely to prefer both the flat tax and the sales tax systems over the current system.

VALUE-ADDED TAXATION: THE ROOTS RUN DEEP INTO COLONIAL AND EARLY AMERICA

1982 ◽  
Vol 9 (2) ◽  
pp. 25-42 ◽  
Author(s):  
Robert P. Crum
Keyword(s):  
Colonial America ◽  
Early Period ◽  
Value Added ◽  
Sales Tax ◽  
Early America ◽  
Value Added Tax ◽  
Tax System ◽  
Ad Valorem

This article indicates that even the most recent forms of taxation find their roots firmly planted in Colonial America. The author shows that the concepts: ad valorem, transaction basis, indirect levy, multi-step collection, and taxation of net product were present during this early period. Through the use of these concepts the historical justifications for the income and sales tax system are provided and indicate a trend toward combining these concepts into one tax. The value-added tax is such a tax. The author concludes that adoption of this tax would complete a trend in American taxation which “took root” in colonial times.

scholarly journals The impact of globalization on the characteristics of European countries’ tax systems

2015 ◽  
Vol 60 (206) ◽  
pp. 117-139 ◽  
Author(s):  
Stevan Lukovic
Keyword(s):  
National Economy ◽  
International Competition ◽  
European Countries ◽  
International Literature ◽  
Tax System ◽  
Economic Background ◽  
Tax Systems ◽  
National Tax ◽  
The Impact ◽  
The Relationship

In the international literature, a great number of studies have sought to determine the relationship between the characteristics of the national tax systems and globalization. Most of the research was conducted to prove the impact of the tax system on the competitiveness of the national economy, in order to give a clear recommendation for how economic and fiscal policy should create a stimulating economic background and enable greater involvement of the national economy in international flows. However, the process can be viewed from the reverse perspective, in the sense that the process of globalization and international competition can shape the characteristics of national tax systems. This paper aims to determine by empirical evidence the impact of the process of globalization and international competition on the characteristics of taxation in observed European countries.

scholarly journals Tax Transparency for an Effective Tax System

2021 ◽  
Author(s):  
Kelbesa Megersa
Keyword(s):  
Developing Countries ◽  
Tax Evasion ◽  
Rapid Review ◽  
Public Confidence ◽  
Contributing Factors ◽  
Tax System ◽  
Financial Flows ◽  
Tax Revenues ◽  
Tax Systems ◽  
High Level

This rapid review examines evidence on the transparency in the tax system and its benefits; e.g. rising revenue, strengthen citizen/state relationship, and rule of law. Improvements in tax transparency can help in strengthening public finances in developing countries that are adversely affected by COVID-19. The current context (i.e. a global pandemic, widespread economic slowdown/recessions, and declining tax revenues) engenders the urgency of improving domestic resource mobilisation (DRM) and the fight against illicit financial flows (IFFs). Even before the advent of COVID-19, developing countries’ tax systems were facing several challenges, including weak tax administrations, low taxpayer morale and “hard-to-tax” sectors. The presence of informational asymmetry (i.e. low tax transparency) between taxpayers and tax authorities generates loopholes for abuse of the tax system. It allows the hiding of wealth abroad with a limited risk of being caught. Cases of such behaviour that are exposed without proper penalty may result in a decline in the morale of citizens and a lower level of voluntary compliance with tax legislation. A number of high-profile tax leaks and scandals have undermined public confidence in the fairness of tax systems and generated a strong demand for effective counteraction and tax transparency. One of the key contributing factors to lower tax revenues in developing countries (that is linked to low tax transparency) is a high level of IFFs. These flows, including international tax evasion and the laundering of corruption proceeds, build a major obstacle to successful DRM efforts. Research has also identified an association between organisational transparency (e.g. transparency by businesses and tax authorities) and stakeholder trust (e.g. between citizens and the state). However, the evidence is mixed as to how transparency in particular influences trust and perceptions of trustworthiness.

COMPETITIVENESS OF THE TAX SYSTEM IN THE CONTEXT OF EXPANDING THE FISCAL SPACE OF UKRAINE

2020 ◽  
Vol 2020 (10) ◽  
pp. 34-53
Author(s):  
Inna LUNINA ◽  
◽  
Olena BILOUSOVA ◽  
Nataliya FROLOVA ◽  
◽  
...  
Keyword(s):  
Open Economy ◽  
Shadow Economy ◽  
Tax Burden ◽  
Tax Reforms ◽  
Tax System ◽  
Tax Revenues ◽  
Fiscal Space ◽  
The Impact ◽  
The Eu

For many countries, the competitiveness of the tax system is a complex issue, as it not only reduces the tax burden on corporate income, whileensuring the intensification of economic development, but also leads to risks of lower tax revenues and loss of public financesustainability. Tax competition requires finding a compromise between ensuring investments and expanding fiscal space to deal withurgent socio-economic challenges in the face of new global challenges. The authors carried out a comparative analysis of the efficiency of tax reforms in terms of their impact onreducing the tax burden on business and increasing the competitiveness of tax systemsin the EU and Ukraine. Despite the success of such reforms in the EU, it was found that Ukrainian reforms have not been quite as efficient in achieving the appropriate level of investments and creating conditions for reducing the shadow economy. It is determined that tax reforms in Ukraine were carried out without considering specific effects of changes in corporate income taxation conditions, in particular, the impact of lower tax rates on tax revenues in the medium and long term, intensification of innovation and investment activities, investment dynamics abroad, etc. It is proved that the priority of increasing the international tax competitiveness of Ukraine should not consist intax ratesdecreasing and eliminationof tax restrictions on the formation of the corporate income tax base, but in the improvement of depreciation policy in terms of accelerating reimbursement of fixed assets and intangible assets, stimulating capital investment in the renewal of production on an innovative basis. It is substantiated that the development of the tax system of Ukraine (as well asother countries with small, open economy and with high level of corruption and shadow economy) should take place within the framework of a holistic concept of sustainable development, taking into account the possible consequences of budget decisions for both current and long-term budgets that will apply to future generations.

The Economic Impact of the Wine Industry on Hotels and Restaurants: Evidence from Washington State

2010 ◽  
Vol 5 (1) ◽  
pp. 164-183 ◽  
Author(s):  
Karl Storchmann
Keyword(s):  
Economic Impact ◽  
Jel Classification ◽  
Washington State ◽  
Tourism Industry ◽  
Wine Industry ◽  
County Level ◽  
High Quality ◽  
Panel Model ◽  
The Impact ◽  
The U.S

AbstractWashington State enjoys an extraordinarily fast growing wine industry and is now the second largest wine producing state in the U.S. This paper examines the impact of this growth on the revenue of hotels and restaurants. Employing a dynamic quarterly panel model at the county level we show that the regional reputation as high quality wine county, as expressed by critical wine points in the national wine press, has a significant effect on the tourism industry. For Walla Walla, the most prominent wine county in the state, less than 17% of all restaurant and approximately 40% of all hotel revenue is tied to the wine cluster (2007). However, regional reputation is not long-living and needs constant replenishment. (JEL Classification: R11, R15, Q19)

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