Taxes alone will not close the wealth gap in Africa

2016 ◽  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Rates ◽  
African Countries ◽  
Content Type ◽  
The Past ◽  
Revenue Sources ◽  
Low Incomes ◽  
Political Patronage ◽  
Per Capita

Subject Taxation effects on inequality in Africa. Significance Economic inequalities in African countries have failed to decline significantly despite gradual growth in per capita GDP over the past several years. Progressive taxation is weak in many countries, but improving this source of revenue alone will not close the inequality gap for some of the world's poorest. Impacts Political patronage and fear of elite emigration will discourage politicians from proposing progressive taxes. If introduced, higher taxes would only reduce inequality if collected transparently and invested in services for those with low incomes. Low income tax rates will limit revenue flows to fund major infrastructure projects, especially if other revenue sources are depressed.

Taxation in a mixed economy: the case of China

2017 ◽  
Vol 34 (1) ◽  
pp. 49-61 ◽  
Author(s):  
Davidson Sinclair ◽  
Larry Li
Keyword(s):  
Income Tax ◽  
Central Government ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
Government Ownership ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Content Type ◽  
Tax Rate ◽  
For Profit

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.

scholarly journals PROBABILITY MODEL OF POVERTY CALCULATION SUBJECT TO DIFFERENT FORMS OF INCOME TAXATION

2020 ◽  
Vol 2020 (4) ◽  
pp. 101-111
Author(s):  
Andrej Vyacheslavovich Mikheev
Keyword(s):  
Income Tax ◽  
Probability Model ◽  
Single Stage ◽  
Income Taxation ◽  
Tax Rates ◽  
Total Income ◽  
Tax Rate ◽  
Low Incomes ◽  
The Russian Federation ◽  
Tax Systems

The article highlights a probabilistic model constructed for calculating the number of poor and the total income tax levied on all taxpayers under different income tax systems. There is considered the proportional income tax system adopted in the Russian Federation, as well as single-stage systems with both fixed and variable tax rates, in which individuals with low incomes are exempted from income tax. For these tax systems there have been found the dependences of the expected value of the number of the poor and the total income tax on the tax rate, tax-free minimum, and also on the laws of probabilities distribution of total income and the living wage of an individual. A numerical simulation of the found dependences was carried out. The conditions under which the abolition of income tax for individuals with low incomes reduces the number of poor were determined. Mathematical criteria are formulated with the help of which it is possible to assess the feasibility of moving from a proportional system to single-stage income tax systems.

Africa's cancer burden to rise without funding shift

2015 ◽  
Keyword(s):  
Low Income ◽  
Urban Areas ◽  
Economic Benefits ◽  
World Health ◽  
Low Income Countries ◽  
Health Priorities ◽  
African Countries ◽  
Content Type ◽  
Cancer Burden ◽  
Market Expansion

Subject Cancer burden in Africa. Significance Cancer is a growing public health threat in low-income countries, including African states. With the increase in urbanisation, population growth and improving mortality rates, the World Health Organisation (WHO) estimates that by 2020, 16 million new cases of cancer will be diagnosed each year, with 70% of those in low-income countries. However, the rise in cancer rates has not been met with changes to aid funding. Global health priorities continue to emphasise infectious diseases, and African countries remain ill-equipped to prevent, diagnose or treat cancer. Impacts Rising consumption of processed foods in urban areas will contribute to an overall rise in non-communicable diseases. African countries are some of the fastest growing markets for tobacco companies as health awareness rises in traditional markets. Global brewers will enjoy significant market expansion in Africa, contributing to increased alcohol consumption. Despite the economic benefits, delayed childbearing and lower fertility in women is set to increase the incidence of breast cancer.

Falling numbers will not ease EU migration tension

2019 ◽  
Keyword(s):  
Foreign Relations ◽  
Asylum Seekers ◽  
Burden Sharing ◽  
North African ◽  
African Countries ◽  
Member States ◽  
Content Type ◽  
Eu Member States ◽  
The Past ◽  
The Eu

Subject EU immigration division. Significance Immigration to Europe has fallen substantially over the past three years, largely because of stricter rules in EU member states and enhanced cooperation with the EU's neighbours. This downward trend, however, coincides with growing tensions between member states over how to tackle immigration once migrants and refugees enter European territory. Impacts Unable to agree on an effect asylum seekers reform, the EU will continue funding African countries to stop irregular migratory flows. Disengagement of EU search and rescue assets and more reliance on under-trained North African coast guards will make sea migration deadlier. Divergent views on immigration burden-sharing could worsen foreign relations between populists in Italy and those in Hungary and Poland.

China's tax cuts seek growth boost and poverty relief

2018 ◽  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Prime Minister ◽  
Standing Committee ◽  
Middle Income ◽  
Content Type ◽  
Poverty Relief ◽  
Government Work ◽  
People's Congress ◽  
Income Tax Reform

Subject Income tax reform in China. Significance As promised by Prime Minister Li Keqiang in his 2018 Government Work Report, the Standing Committee of the National People's Congress has passed on August 31 an amendment to China's individual income tax. It slashes tax for low-income and middle-income earners, in an effort to keep up with the rapid increase in living costs and better redistribute wealth in one of the most unequal countries in the world, with a Gini coefficient for income of about 0.40. Impacts Recent comments by the Constitution and Law Committee signal that the law may soon be amended again. Important changes to residency rules will have an impact on foreign nationals living in China. New tax residence and anti-avoidance rules will eliminate loopholes and allow for a more efficient tax collection.

A study into the links between mortgage financing and economic development in Africa

2016 ◽  
Vol 9 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Paul K. Asabere ◽  
Carl B McGowan Jr. ◽  
Sang Mook Lee
Keyword(s):  
Economic Development ◽  
Growth And Development ◽  
Significant Positive Correlation ◽  
Mortgage Market ◽  
Empirical Literature ◽  
African Countries ◽  
Mortgage Markets ◽  
Content Type ◽  
Positive Correlation ◽  
Per Capita

Purpose – The purpose of this paper is to explore the link between mortgage financing and economic development for African countries, as there is a gap in the literature regarding this topic. The development of mortgage markets is important for the overall development of a country. Policymakers and international institutions like the World Bank have been promoting the expansion of Africa’s nascent mortgage markets as a logical stimulus to economic growth and development. Specifically, the authors analyze the link between the size of the mortgage market and the gross national income (GNI) per capita for African countries. They found a significant positive correlation between the size of the mortgage market and GNI per capita. A plausible interpretation is that mortgage financing can induce growth and development. Design/methodology/approach – The authors examine the relationship between mortgage financing and GNI per capita for African countries using the hedonic framework. Findings – The authors found a significant positive correlation between the size of the mortgage market and the level of GNI per capita, as hypothesized for this study. Practical implications – An economically plausible interpretation is that the availability of mortgage financing leads to a more efficient financial system, which, in turn, produces growth and development. Social implications – These findings provide empirical support for the need to pay greater attention to further development and expansion of the emergent mortgage markets of African economies. Originality/value – There is a gap in the empirical literature regarding this topic with reference to the link between mortgage financing and economic development for African countries.

The mechanism of personal income taxation and its prospects in Ukraine

2021 ◽  
Vol 92 (1) ◽  
pp. 33-42
Author(s):  
Yaroslav Yarema
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Budget ◽  
Low Incomes ◽  
The Impact ◽  
Personal Income Taxation ◽  
Current Mechanism

The article analyses the current mechanism of personal income taxation in Ukraine, examining the impact of its individual elements on total revenues from personal income tax. The analysis of revenue contributions from personal income taxation to the consolidated state budget and local budgets indicates that the personal income tax remains the most important sources of revenue. In the structure of personal income tax revenues, wages are the main source of taxable income. The author analyses the mechanism of taxation for natural persons (businessmen) and tax receipts flowing to local budgets from incomes from business activity and highlights its shortcomings. In this context, he proposes introducing progressive tax rates, which will make it possible to shift the tax burden from individuals with low incomes to those who earn higher incomes.

International support for environmental protection

2004 ◽  
Vol 9 (6) ◽  
pp. 757-780 ◽  
Author(s):  
DEBRA K. ISRAEL
Keyword(s):  
Economic Growth ◽  
Environmental Protection ◽  
Low Income ◽  
Empirical Relationship ◽  
National Income ◽  
Developed Countries ◽  
Low Income Countries ◽  
African Countries ◽  
Household Level ◽  
Per Capita

This paper uses household-level survey data from a 1989 Harris poll conducted in 12 developing and three developed countries to examine the empirical relationship between the support for paying higher taxes for environmental protection and per capita national income. Results from ordered probit estimation suggest that as per capita real gross domestic product rises, controlling for other household characteristics, the strength of the support for somewhat higher taxes for environmental protection is falling for low-income countries and rising for high-income countries. The evidence also suggests that environmental protection may be important to people in developing countries during the process of economic growth. The high level of support for environmental protection found among the lower-income African countries included in this study is one result that warrants additional research. Higher economic growth rates are also found to be associated with greater support for environmental protection.

Source separation and recycling potential of municipal solid waste in Ghana

2016 ◽  
Vol 27 (2) ◽  
pp. 210-226 ◽  
Author(s):  
S. Oduro-Kwarteng ◽  
K. P. Anarfi ◽  
H. M.K. Essandoh
Keyword(s):  
Solid Waste ◽  
Low Income ◽  
Separation Efficiency ◽  
Source Separation ◽  
Economic Incentives ◽  
Household Waste ◽  
Middle Income ◽  
Content Type ◽  
Per Capita ◽  
Low And Middle Income

Purpose – The purpose of this paper is to assess the waste characteristics and separation efficiency of source separation of household waste in low- and middle-income communities in Kumasi Metropolis, Ghana. Design/methodology/approach – A sample of 60 households participated in the household survey, education on source separation and pilot source separation exercise. The solid waste was sorted into six fractions and three recycling categories (biodegradable; paper and plastic; residue). Findings – The mean generation rate of solid waste was 0.52±0.26 kg/per capita/day for the low-income community and 0.65±0.27 kg/per capita/day for the middle-income community. The waste fractions in the communities (low, middle income) were biodegradable organics (59.15, 65.68 per cent), plastics (11.01, 10.68 per cent), papers (3.15, 4.51 per cent), glass (0.89, 2.57 per cent), metals (0.96, 4.63 per cent) and miscellaneous (24.84, 11.93 per cent), respectively. The separation efficiency for organic category was 70 per cent, inorganic and residue was over 69 per cent and the paper and plastics was over 60 per cent. Research limitations/implications – The study suggests that the success of source separation programme hinges on education and economic incentives. It was noted that the sample size could be increased to enhance the accuracy of the data for prediction purpose. Practical implications – The findings showed there is potential for recycling through source separation programme in low-and middle-income communities. Public education and economic incentives are necessary for successful source separation programme. Originality/value – The paper provides insight into source separation to contribute to better understanding of how city authorities in developing countries could take advantage of economic incentives to scale-up recycling.

Globalization (fighting), corruption and development

2014 ◽  
Vol 41 (3) ◽  
pp. 346-369 ◽  
Author(s):  
Simplice Asongu
Keyword(s):  
Human Development ◽  
Low Income ◽  
Low Income Countries ◽  
Development Economic ◽  
The Political ◽  
Social Dimensions ◽  
Political Dimension ◽  
Content Type ◽  
Government Quality ◽  
Per Capita

Purpose – Is globalization instrumental in fighting corruption? Do wealth effects matter in this fight? Are findings valid when linearity assumptions are dropped? The purpose of this paper is to assess the Lalountas et al. (2011) hypotheses (conclusions) in the African context. Design/methodology/approach – Though not form, yet in substance the intuition and motivation are compatible with those of Lalountas et al. (2011). Four hypotheses are tested from different methodological and contextual standpoints. In the analysis, while the economic and social dimensions of globalization are reflected in the human development index, the political dimension is captured by good governance indicators. A two-stage least squares-instrumental variable (TSLS-IV) estimation technique is applied where-in globalization instruments of trade and financial liberalization are instrumented on human development and government quality to account for corruption (corruption-control) effects. Thus the intuition is assessing how globalization is instrumental in the fight against corruption through human development (economic and social dimensions) and government quality (political dimension). Findings – H1: globalization is a powerful tool in fighting corruption (True). H2: globalization is an important tool in fighting corruption only in middle- and high-income countries (partially true). H3: for low-income countries globalization has no significant impact on corruption (true). H4: H1 and H2 are valid only under linearity (false). Social implications – In countries with high levels of per capita, emphasis is placed on the political and social dimensions of globalization and as a result the effects of this phenomenon on corruption-control are significant. Conversely, in nations with low levels of per capita income, emphasis is given to the economic dimension of international integration and as a result the effect of globalization on corruption is limited. As a policy implication, persistent globalization as an effective means to reduce corruption in developing countries might lead to inappropriate policies in low-income countries. Originality/value – This paper has tested the Lalountas et al. (2011) hypotheses in the continent where concerns of globalization, human development and corruption are most acute.

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