Simplicity and Complexity

2020 ◽  
Author(s):  
Leonard E. Burman ◽  
Joel Slemrod
Keyword(s):  
Income Tax ◽  
Tax Complexity ◽  
The U.S

How complicated is the U.S. income tax? In a 2015 poll, 72 percent of Americans said they were bothered by tax complexity, with 44 percent declaring it bothered them a lot.1 How complex it actually is depends on who you are or, more...

scholarly journals Skill-Biased Technological Change and Inequality in the U.S.

2020 ◽  
pp. 91-107
Author(s):  
Ana Ferreira
Keyword(s):  
Income Inequality ◽  
Technological Change ◽  
Incomplete Markets ◽  
Gini Coefficient ◽  
Income Tax ◽  
Overlapping Generations ◽  
Overlapping Generations Model ◽  
Biased Technological Change ◽  
Household Heterogeneity ◽  
The U.S

Since the 1980s, income inequality has increased markedly and has reached the highest level ever since it started being recorded in the U.S. This paper uses an overlapping generations model with incomplete markets that allows for household heterogeneity that is calibrated to match the U.S. economy with the purpose to study how skill-biased technological change (SBTC) and changes in taxation quantitatively account for the increase in inequality from 1980 to 2010. We find that SBTC and taxation decrease account for 48% of the total increase in the income Gini coefficient. In particular, we conclude that SBTC alone accounted for 42% of the overall increase in income inequality, while changes in the progressivity of the income tax schedule alone accounted for 5.7%.

scholarly journals Income Tax Complexity Faced by Multinational Corporations: A Comparative Study of Canada, the United States, and Other Selected OECD Countries

2021 ◽  
Vol 69 (3) ◽  
pp. 745-790
Author(s):  
Susann Sturm
Keyword(s):  
United States ◽  
Multinational Corporations ◽  
Income Tax ◽  
Transfer Pricing ◽  
The United States ◽  
Oecd Countries ◽  
The Us ◽  
Tax Complexity ◽  
Medium Level ◽  
Foreign Corporations

This study examines the complexity of Canada's corporate income tax system from the perspective of multinational corporations and compares it with the complexity of the US system, also taking into account measures of complexity for 19 other member countries of the Organisation for Economic Co-operation and Development (OECD). The author finds that with regard to the Canadian tax code, the most complex laws are those on corporate reorganization, transfer pricing, and controlled foreign corporations, and with regard to the Canadian tax framework, the most complex areas are tax audits, tax-law enactment, and tax guidance. In comparison with other OECD countries, Canada is remarkably similar to the United States. Both countries have a medium level of overall complexity, and both have a more complex tax code but a less complex tax framework than other countries. However, a closer examination of the Canadian and US tax codes and tax frameworks reveals some significant differences in complexity levels, particularly in respect of certain tax laws.

The Determinants Of Personal Saving In The U.S.

2010 ◽  
Vol 26 (5) ◽  
Author(s):  
Myeong Hwan Kim
Keyword(s):  
Economic Performance ◽  
Income Tax ◽  
Time Series Data ◽  
Series Data ◽  
Personal Income Tax ◽  
Font Size ◽  
Personal Saving ◽  
External Variables ◽  
Real Estate Loan ◽  
The U.S

<p class="MsoNormal" style="text-justify: inter-ideograph; text-align: justify; margin: 0in 36.1pt 0pt 0.5in; mso-pagination: none;"><span style="color: black; font-size: 10pt;"><span style="font-family: Times New Roman;">In this study, a number of internal and external variables that could affect personal saving are examined using regression to show how they are related to personal saving. The empirical study is performed using the time series data of the U.S. between the years 1950 and 2007. The findings reveal that personal saving is highly dependent on personal income, tax, credit outstanding and status of employment, while dependency ratio, current real estate loan, real interest rate and status of economic performance are indeterminate.<em><span style="mso-bidi-font-style: normal;"></span></em></span></span></p>

Tax Policy under Nongeometric Physical Depreciation

1986 ◽  
Vol 14 (3) ◽  
pp. 263-288
Author(s):  
Tryphon Kollintzas
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Cost Of Capital ◽  
Tax Structure ◽  
User Cost ◽  
Policy Changes ◽  
Fixed Investment ◽  
Major Implication ◽  
The U.S

This article takes into account most important features of the U.S. corporation income tax structure in the derivation of the user cost of capital from a model that allows for nonstatic expectations and nongeometric physical depreciation. The depreciation component of the derived user cost of capital is a function of the discounted future stream of after-tax replacement costs necessary to maintain indefinitely one unit of capital. This establishes a previously neglected channel through which tax policy may affect the user cost of capital and therefore fixed investment. The major implication of this finding is that tax policy changes that are perceived to be relatively temporary may have a smaller impact on fixed investment than previously thought.

scholarly journals VITA Experiential, Service-Learning, Learned Competencies, And Changed Mindsets

2014 ◽  
Vol 11 (2) ◽  
pp. 71-84 ◽  
Author(s):  
Robin Boneck ◽  
Jeffrey N. Barnes ◽  
Tyler F. Stillman
Keyword(s):  
Content Analysis ◽  
Service Learning ◽  
Qualitative Analysis ◽  
Income Tax ◽  
Quantitative Assessment ◽  
Internal Revenue Service ◽  
Learning Activity ◽  
Lower Income ◽  
Student Volunteers ◽  
The U.S

The authors describe how Southern Utah University has integrated the U.S. Internal Revenue Service (IRS) Voluntary Income Tax Assistance (VITA) program as an experiential service-learning activity for over a decade and a half. First, we describe the value of experiential service-learning. Second, we detail the program, its oversight, its student volunteers, and its purposes. Third, we provide a quantitative assessment of professional competencies based on a sample of 29 recent VITA student volunteers. Fourth, we describe a qualitative analysis of VITA student volunteers perceptions of their participation using content analysis of written essays. And last, we provide a qualitative analysis of 71 tax-clients perceptions of their participation in the program, again using content analysis. Based on our experiences and these results, we conclude that the VITA program is demonstrably beneficial for the institutions social responsibility for benefitting both the student volunteers professional development and communitys lower-income tax filers.

scholarly journals Determinan Kepatuhan Pajak pada Industri Jasa Konstruksi

2015 ◽  
Vol 2 (02) ◽  
pp. 167-180
Author(s):  
J. Purwono
Keyword(s):  
Income Tax ◽  
Government Regulation ◽  
Test Validity ◽  
Tax Compliance ◽  
Jel Classification ◽  
Validity And Reliability ◽  
Fairness Perception ◽  
Tax Complexity ◽  
Construction Services ◽  
Tax Fairness

A B S T R A C T This study aims to determine the factors that affect tax compliance taxpayers and differences in tax revenue Income from the business sector construction services in Indonesia before and after the enactment of Government Regulation No. 51 Year 2008 on Income Tax on Income From Construction Services (PP51 / 2008) Nomo and Government Regulation 40 Year 2009 on Amendment of Government Regulation No. 51 Year 2008 on Income Tax on Income From Construction Services. Population of this research is the taxpayer company’s construction services business in Indonesia. Samples were analyzed 104 questionnaires. Determinants of tax compliance are lack of money, tax fairness perception, tax complexity, ignorance of tax due, and the probability of detected. The data quality test validity and reliability. Hypothesis testing is done to test structural models. The results showed that fairness in taxation, regulatory complexity, ignorance, and the possibility of disclosure of deviations is the deciding factor of tax compliance, while lack of money is not proven as a determinant of tax compliance. A B S T R A K Penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi kepatuhan perpajakan Wajib Pajak dan perbedaan penerimaan Pajak Penghasilan dari sektor usaha jasa konstruksi di Indonesia sebelum dan sesudah diundangkannya Peraturan Pemerintah Nomor 51 Tahun 2008 Tentang Pajak Penghasilan Atas Penghasilan Dari Usaha Jasa Konstruksi (PP51/2008) dan Peraturan Pemerintah Nomo 40 Tahun 2009 Tentang Perubahan Peraturan Pemerintah Nomor 51 Tahun 2008 Tentang Pajak Penghasilan Atas Penghasilan Dari Usaha Jasa Konstruksi. Populasi penelitian adalah wajib pajak perusahaan usaha jasa konstruksi Indonesia yang tergabung pada GAPENSI, GAPENRI, AKLI dan AKI, Wilayah DKI Jakarta Raya.. Sampel dianalisis sebanyak 104 kuesioner. Faktor-faktor penentu kepatuhan terdiri lack of money, tax fairness perception, tax complexity, ignorance of tax due, dan probability of detected. Uji kualitas data dilakukan dengan uji validitas dan reliabilitas. Pengujian hipotesis dilakukan dengan uji model structural. Hasil penelitian menunjukkan bahwa keadilan di bidang perpajakan, kompleksitas peraturan, ketidakpedulian, dan kemungkinan terungkapnya penyimpangan merupakan faktor penentu kepatuhan perpajakan, sementara kekurangan uang tidak terbukti sebagai determinan kepatuhan pajak. JEL Classification: H20, K34

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