scholarly journals Breite Bemessungsgrundlage und niedriger Proportionaltarif als alternative Erbschaftsteuerreform – Eine empirische Analyse

2010 ◽  
Vol 11 (2) ◽  
pp. 204-222 ◽  
Author(s):  
Henriette Houben ◽  
Ralf Maiterth
Keyword(s):  
Empirical Analysis ◽  
Tax Reform ◽  
Market Valuation ◽  
Tax Rates ◽  
Tax Base ◽  
Tax Rate ◽  
Inheritance Tax ◽  
Tax Exemptions ◽  
Empirische Analyse ◽  
Tax Relief

AbstractThis submission deals with an alternative to the German Inheritance Tax Reform Act 2009 in form of an inheritance tax with a broad tax base and low tax rates. In contrast to the new German Estate Tax Act we analyse an inheritance tax reform proposal that provides no tax relief for particular asset categories but contains low proportional tax rates. Our empirical analysis shows that abolishing of tax exemptions and market valuation of assets lead to a remarkable broadening of the inheritance tax base and enables substantial tax rate cuts.

scholarly journals Policy Forum: Is Accelerated Depreciation Good or Misguided Tax Policy?

2019 ◽  
Vol 67 (1) ◽  
pp. 41-55
Author(s):  
Philip Bazel ◽  
Jack Mintz
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Accelerated Depreciation ◽  
The Government ◽  
Jobs Act

The authors examine the implications of Canada's response to the 2017 US tax reform. Canada's focus on accelerated tax depreciation will achieve lower marginal effective tax rates on capital for taxpaying companies, well below the US levels achieved with the Tax Cuts and Jobs Act that came into effect on January 1, 2018. By ignoring neutrality, the government offsets some of the potential gains by reducing the tax burden on capital, thereby failing to maximize efficiency gains from a better corporate tax system. Further, Canada's approach fails to respond to competitiveness effects of US reforms on corporate tax base erosion in Canada as companies shift profits to the United States. The low US tax rate on intangible income will draw certain functions to the United States. A more comprehensive approach to corporate tax reform, including some reduction in corporate income tax rates, would have been a preferable response.

scholarly journals Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

2021 ◽  
Vol 7 (2) ◽  
pp. 134-145
Author(s):  
M. Krajňák ◽  
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Effective Tax Rate ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Progressivity ◽  
The Impact ◽  
Income Tax Reform

Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.

Do State Sales Taxes Crowd Out Local Option Sales Taxes?

2018 ◽  
Vol 18 (3) ◽  
Author(s):  
Gregory S. Burge ◽  
Cynthia L. Rogers
Keyword(s):  
Local Governments ◽  
Sales Tax ◽  
Tax Rates ◽  
Tax Base ◽  
Tax Rate ◽  
Sales Taxes ◽  
Fiscal Externalities ◽  
Crowd Out ◽  
State And Local ◽  
Fiscal Spillovers

Abstract Currently, sales taxes are imposed at both the state and local levels in 37 US states. In these environments, vertical tax competition occurs as governments share a common sales tax base, and local jurisdictions have autonomy over sales tax rates. As cash-strapped states look to sales taxes for additional revenues, local governments may worry about potentially adverse revenue impacts, as consumers react to combined tax rate increases. This study examines state-municipal and county-municipal fiscal spillovers using an empirical approach that accounts for endogenous tax policy leadership and voter tax fatigue. Employing comprehensive longitudinal data from Oklahoma, we find that state tax hikes significantly crowd out future rate increases for the large group of jurisdictions that are designated as followers. Leader jurisdictions are not found to display crowd-out tendencies, a result that is consistent with recent work suggesting that leaders may be less influenced by vertical fiscal externalities than other jurisdictions.

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

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.

scholarly journals Aufkommens- und Verteilungsfolgen des Ersatzes des deutschen einkommensteuerlichen Formeltarifs durch einen Stufentarif

2011 ◽  
Vol 12 (3) ◽  
pp. 280-302 ◽  
Author(s):  
Henriette Houben ◽  
Ralf Maiterth ◽  
Heiko Müller
Keyword(s):  
Empirical Analysis ◽  
Tax Law ◽  
Tax Rates ◽  
Liberal Party ◽  
Distributional Effects ◽  
Tax Rate ◽  
Rate Structure ◽  
Tax Simplification ◽  
Tax Payers

AbstractA simplification of the German tax law is the major intend when proposing a graduated tax rate to replace the current German formula based tax scale. A plain tax rate structure requires catchy tax brackets (e.g. in 5.000 € or 10.000 € steps) and tax rates (e.g. tax rate differences of 5% or 10%). Our empirical analysis shows that such a graduated tax rate causes significant distributional effects and, depending on the particular form, affects different groups of tax payers in different ways. This holds in particular for the two graduated tax rate proposals from the German Liberal Party which additionally provoke substantial revenue losses. A graduated tax rate with little revenue and distributional effects compared to the current formula based tax scale lacks a plain structure and hence conflicts with the objective of tax simplification.

THE COMPARISON OF CORPORATE INCOME TAX IN LATVIA AND LITHUANIA

2017 ◽  
pp. 20
Author(s):  
Jūlija Ščeglova ◽  
Iveta Mietule
Keyword(s):  
Income Tax ◽  
The State ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
State Budget ◽  
Tax Base ◽  
Tax Rate ◽  
Common Features ◽  
Advance Payment ◽  
Tax Payers

Corporate income tax is one of the important taxes that provide revenues to the state budget. Article contains a comparison between Latvian and Lithuanian existing legislation relating to corporate income tax, studied differences between the tax rates, tax base, tax period and taxpayers. Were described differences that are related to the advance payment calculation, as well as created an example that shows how advance payments are calculated in Latvian and Lithuanian companies. As a result, it was found that there are several common features in the Latvian and Lithuanian legislation, with regard to corporate income tax, for example, the tax payers, taxation period, tax rate, the taxable amount. But there are several differences, such as the nuances of rates for non-residents, depending on the type of revenue, advance payment deadlines and other particularities of the calculation of the advance payments. Also differ corporate income tax payment deadlines. It was concluded that making advance payments in Lithuanian enterprises is more profitable, because it was calculated that at the same conditions, the amount of advances in Lithuania is lower than in Latvia.

Constitutional Rules of Overlapping Taxation among Multi–Tiered Governments*

2012 ◽  
Vol 30 (1) ◽  
pp. 169-182
Author(s):  
Akira Yokoyama
Keyword(s):  
Political Economy ◽  
Public Choice ◽  
Fiscal Decentralization ◽  
Constitutional Political Economy ◽  
Tax Rates ◽  
Constitutional Rule ◽  
Tax Base ◽  
Tax Rate ◽  
Rate Constraints

Abstract The literature of public choice and constitutional political economy argues for fiscal decentralization and for enlarging the tax and spending powers of sub-national tiers of government. Numerous investigations of vertical tax externalities caused by overlapping and uncoordinated taxation appeared in the 1990s after Brennan - Buchanan [1980] and Flowers [1988]. The literature, however, seldom discussed constitutional rules governing overlapping taxation in federal or multi-tiered governmental structures. This paper closes that gap in the literature. It explicates the criteria for selecting constitutional rules governing overlapping taxation and demonstrates that a competitive tax regime constrained by a maximum tax rate surpasses a competitive tax regime without rate constraints as a constitutional rule. It concludes that constraining maximum tax rates applicable to any tax base is highly important in multi-tiered governmental structures.

scholarly journals MEREVIU BASIS PEMAJAKAN PERUSAHAAN PELAYARAN NASIONAL BERDASARKAN “DEEMED PROFIT” ATAS PENGHASILAN DARI USAHA ANGKUTAN LAUT

2018 ◽  
Vol 8 (2) ◽  
pp. 112-140
Author(s):  
Chairil Anwar Pohan
Keyword(s):  
Income Tax ◽  
Tax Rates ◽  
Net Income ◽  
Tax Base ◽  
Tax Rate ◽  
Shipping Company ◽  
Flat Rate ◽  
The Law ◽  
Time Changes ◽  
Rate Of Profit

Since Legislative Assembly approved Law No. 7 of 1983 on Income Tax, as last amended by the Law No. 36 of 2008 (so there are four time changes, namely by the Law No. 7 of 1991, then No. 10 of 1994, furthermore No. 17 of 2000 and the last No. 36 of 2008), but the base of the domestic and overseas shipping company taxation which apply Special Calculation Norm of Net Income (deemed profit) for the national and overseas shipping companies taxpayers with the application of Article 15 of the Income Tax (Final Tax) did not change either in the tax rates and the tax bases, whereas the corporate tax rate (Article 17 paragraph 1) has changed from the Law No. 7 of 1983 with progressive rates levying at the rate of 10% -35% with the last change to a flat rate of 25% in the Law No. 36 of 2008. Similarly, the Tax Base used appear to have been unreasonable to overseas shipping Net Income amounted to 6%. Tax Base which reflects the rate of return the company is used as a base taxation income tax shipping company seems too low, compared with the rate of profit (net profit after tax) obtained by shipping companies at home and abroad. These conditions certainly result in low tax revenue from the shipping sector, and on the other aspects of the fulfillment of tax fairness rules also disrupted due to the shipping company suffered a loss nonetheless pay a final tax (VAT Article 15).

scholarly journals Personal Income Taxation in Poland

Ekonomika ◽  
2008 ◽  
Vol 84 ◽  
Author(s):  
Edyta Małecka-Zieńska
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
The One ◽  
Taxation System

The Polish taxation system has been undergoing substantial changes in recent years, aimed at creating a more transparent system and conforming to the taxation standards of market economy countries. The two most important changes were introduction of the personal income tax (PIT) in 1992 and replacement of the turnover tax with the value added tax (VAT) in 1993. The uniform personal income tax covered all incomes generated by natural persons irrespective of where the sources of income are located. The reform provided also a more equitable distribution of the tax burden by introducing a progressive system with three nominal tax rates (in 1992-20%, 30%, 40%).A comparative study of the effective PIT rate for pensioners and other groups of PIT payers is the main goal of this paper. The study refers to our own research on data received from The information of Polish Ministry of Finance about accounting of PIT in several subsequent years. Statistics cover a period from 1993 to 2003. However, numbers of taxpayers refer also to year 1992 when the PIT has been established and a period from 2004 to 2006.Concluding the situation in Poland, taxpayers with the highest income make exhaustive use of tax reductions. There are occurring situations when well-off people benefit more than people with relatively minor income (e. g. pensioners). It happens even if most of deductions were aimed generally at all taxpayers. Such a situation reduces the impression of the system fairness. Because tax deductions reduce budgetary revenues, the foregone revenues have to be compensated by other taxes or / and higher rates. Therefore, the system of deductions and relief, on the one hand, supports the special gains (e. g. house building), however, on the other it generates costs. It is possible that the reduction of tax rate for the I tax bracket and removal of some tax exemptions and deductions would make the Polish personal income tax more transparent, equal and simple.

The Impact of the Source of Changes in Marginal Tax Rates on Participation in Individual Retirement Accounts

2002 ◽  
Vol 24 (1) ◽  
pp. 46-59 ◽  
Author(s):  
David H. Eaton
Keyword(s):  
Fixed Effects ◽  
Tax Reform ◽  
Tax Rates ◽  
Tax Rate ◽  
Taxable Income ◽  
Individual Retirement Accounts ◽  
Retirement Accounts ◽  
Marginal Tax Rates ◽  
The Impact ◽  
Participation Decisions

This paper uses a series of two-year panels of tax return data to estimate the effects of two sources of tax rate changes on the participation in Individual Retirement Accounts (IRAs). This paper uses a panel logit approach to control for individual specific fixed effects, which may also influence IRA participation behavior. This paper examines participation during the years of open eligibility for IRAs, as well as examining the impact of the 1986 tax reform on participation. A key finding of this paper is that taxpayers' IRA participation decisions are more sensitive to changes in tax rates due to changes in taxable income than to direct changes in the tax tables.

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