Taxation, Uncertainty and the Choice of a Consumption Tax Base

2019 ◽  
pp. 227-237
Author(s):  
George R. Zodrow
Keyword(s):  
Consumption Tax ◽  
Tax Base

scholarly journals Laffer Curves and Home Production

2017 ◽  
Vol 2017 (1) ◽  
pp. 59-69
Author(s):  
Mauri Kotamäki
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Private Consumption ◽  
Home Production ◽  
Consumption Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Related Literature ◽  
Laffer Curve ◽  
Laffer Curves

Abstract In the earlier related literature, consumption tax rate Laffer curve is found to be strictly increasing (see Trabandt and Uhlig (2011)). In this paper, a general equilibrium macro model is augmented by introducing a substitute for private consumption in the form of home production. The introduction of home production brings about an additional margin of adjustment – an increase in consumption tax rate not only decreases labor supply and reduces the consumption tax base but also allows a substitution of market goods with home-produced goods. The main objective of this paper is to show that, after the introduction of home production, the consumption tax Laffer curve exhibits an inverse U-shape. Also the income tax Laffer curves are significantly altered. The result shown in this paper casts doubt on some of the earlier results in the literature.

Analysis of Impact of Goods and Services Tax on Indirect Taxes of Karnataka State

2019 ◽  
Vol 67 (1-2) ◽  
pp. 117-127
Author(s):  
Basavanagouda Nayaka ◽  
V. P. Panduranga
Keyword(s):  
Annual Growth Rate ◽  
State Governments ◽  
Consumption Tax ◽  
Tax Reforms ◽  
Tax Base ◽  
Goods And Services ◽  
Taxation Policy ◽  
Karnataka State ◽  
Taxation System ◽  
Roll Out

Socio-economic development of a country depends on the effectiveness of its taxation system. Taxation policies of many countries are undergoing significant change in the winds of globalisation. To cope up with the emerging challenges of globalisation and digitalisation, the taxation policy needs to adapt to reduce the burden on taxpayers and increase the tax base. India has undergone many tax reforms since independence to make the taxation system comprehensive, unique, transparent, simple and broad based. Towards achieving the said objectives, India took the milestone step to introduce Goods and Services Tax (GST), which is considered as a landmark reform in indirect tax regime. GST brought goods and services under one tax net and provided less scope for evasion of taxes. GST is a destination-based consumption tax with the revenue-sharing mechanism between the centre and the states. It ensures that tax revenue is to be attributable to the state in which consumption takes place. This principle, in turn, affected manufacturing states’ (origin states) exchequers. The centre agreed to compensate states on account of the loss of revenues, due to roll out of GST, for first 5 years, with the projected annual growth rate of 14 per cent on a bimonthly basis, keeping 2015–2016 as a base year. An attempt is made in this study to ascertain the current position of tax collections of Karnataka state after 2.5 years of implementation of GST. It is found from the study that registrations, return filing and tax collections are increasing in the GST regime. But there is a delay in providing compensation to states. It will affect the spending of state governments on various welfare activities.

The Size of Government, Capital Accumulation, and the Tax Base

1983 ◽  
Vol 11 (3) ◽  
pp. 321-345 ◽  
Author(s):  
David C. L. Nellor
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Capital Accumulation ◽  
Tax Reform ◽  
Consumption Tax ◽  
Size Of Government ◽  
Tax Base ◽  
Tax System ◽  
Policy Concern

A central tax policy concern is the role of particular tax bases in either stimulating or discouraging capital accumulation. While the consumption tax has been proposed as superior to the income tax in terms of its treatment of saving, the literature has shown that whether a consumption or income-based tax system is associated with greater capital accumulation is theoretically indeterminate. This article incorporates the role of public accumulation and changing government activities into its analysis of capital accumulation, which enables this ambiguity to be resolved. An examination of U.S. data for the 1929–1978 period suggests that had inflation adjustment of the income tax been adopted it would, contrary to the implication of several tax reform proposals, have resulted in greater accumulation than the implementation of a consumption tax.

scholarly journals Taxpayer Effects Of A Change To A Consumption Tax Base

2011 ◽  
Vol 2 (3) ◽  
pp. 79
Author(s):  
Julia K. Brazelton
Keyword(s):  
Tax Reform ◽  
Tax Law ◽  
Consumption Tax ◽  
Tax Base ◽  
Spending Behavior ◽  
Macroeconomic Effects ◽  
The Individual

The goal of this study is to determine whether changes in tax law enacted with the purpose of inducing investment/savings actually have an impact on individual taxpayer spending behavior. The Congressional records indicate that much recent tax reform has been designed to emulate a consumption tax; therefore, an analysis of the effects of tax law changes designed to stimulate savings on the individual taxpayer should allow generalization regarding the implications of a consumption tax base on the individual taxpayer, ignoring macroeconomic effects.

scholarly journals Further Evidence Supporting The Replacement Of The Federal Tax System With A Consumption Tax Base

2011 ◽  
Vol 4 (1) ◽  
pp. 12
Author(s):  
Julia K. Brazelton
Keyword(s):  
United States ◽  
Regression Analysis ◽  
Income Tax ◽  
The United States ◽  
Tax Structure ◽  
Consumption Tax ◽  
Tax Base ◽  
Tax System ◽  
Analysis Techniques ◽  
The Impact

This study examines the primary considerations accompanying implementation of a consumption-based federal tax system. Additionally, theoretical and empirical (including graphs, derivates, and regression analysis) techniques are used to evaluate a consumption tax structure in the United States. The evidence presented supports such a system; however, the publics misperceptions concerning the impact and mechanics and the legislative bodys unwillingness to entertain a consumption tax proposal will probably further delay serious consideration for replacement of the income tax with a consumption tax.

scholarly journals Policy Forum: Much Ado About Doing Not Much: Some Reflections on the Jurisdiction To Tax Business Transactions

2021 ◽  
Vol 68 (4) ◽  
pp. 1069-1082
Author(s):  
Malcolm Gammie
Keyword(s):  
Value Added ◽  
The State ◽  
Business Activity ◽  
Consumption Tax ◽  
Tax Base ◽  
Starting Point ◽  
The Subject ◽  
Eu Directives ◽  
The Uk ◽  
Policy Forum

Most states aim to tax in one way or another the outputs, products, or profits of business activity conducted within their jurisdiction. The scope to tax is limited, however, when the business is based abroad and trades only with persons in the state in question. A starting point in such situations is to consider whether the state can claim jurisdiction over a foreign business to enforce its claims. The next question is whether the subject matter of the tax charge—the tax base—is amenable to the state's jurisdiction. In this respect, different considerations apply in imposing a consumption tax, such as value-added tax (VAT), as compared with a business profits tax. This article looks first at the common-law jurisdictional basis adopted by the English courts before considering the test developed by the UK courts in the 19th and early 20th centuries to determine whether the profits of a business based abroad nevertheless fall within the United Kingdom's taxing jurisdiction. The UK approach to taxing the profits of UK business activity by a foreign business is then contrasted with the approach adopted for VAT as applied, in particular, to the remote supply of digital services from abroad. The United Kingdom's rules currently derive from EU directives, and it remains open whether they will diverge over time following Brexit.

scholarly journals Reallocation of National Tax Resources among the Central and Local Government: With Special Emphasis on "Local Transfer Tax"

1990 ◽  
Vol 5 (0) ◽  
pp. 89-104
Author(s):  
Yeon-Cheon Oh
Keyword(s):  
Local Government ◽  
Central Government ◽  
Tobacco Consumption ◽  
Public Enterprise ◽  
Local Autonomy ◽  
Consumption Tax ◽  
Tax Base ◽  
Tax System ◽  
National Tax ◽  
Local Transfer

Korea is ready to introduce local autonomy as a result of political compromise between the ruling and opposition party. With the introduction of local autonomy in Korea, changes in the local financial system are expected. For example, the local government is expected to raise its own tax efforts as well as share more portion of total internal tax revenue. Therefore, the redesign of local tax system with additional transfer of the national tax base to the local government is one of the major tax policy issues in Korea. For strengthening local tax capability, the central government has transferred most of tobacco profits of the public enterprise to local government in a form of Tobacco Consumption Tax. In spite of the introduction of Tobacco Consumption Tax to local tax system which contributes to improvement of financial situation of local government, other national taxes (example, Telephone Tax, Inheritance Tax, Liquor Tax) are also under consideration, as adequate targets for local transfer.

Revenue Sources

2018 ◽  
Author(s):  
Pierre Pestieau ◽  
Mathieu Lefebvre
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Social Protection ◽  
Consumption Tax ◽  
Tax Base ◽  
Payroll Taxes ◽  
Revenue Sources ◽  
The Social ◽  
Alternative Sources ◽  
Payroll Taxation

This chapter looks at the alternative sources of financing for social protection in Europe. The main source is payroll taxation. Two issues are often raised: that of the regressivity of payroll taxation and that of enlarging a tax base that is increasingly restricted to salaried work. Given that shrinking base, European governments are searching for alternative sources of finance, mainly consumption tax and income tax. In most countries, payroll taxation is an integral part of the social insurance compact, which involves unions and management. To the extent that payroll taxes are perceived as contributions or premiums paid for an insurance service, they are expected to be better accepted than other taxes.

Commentary National Goods and Services Tax (GST): The Road Ahead

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Aanchal Gupta
Keyword(s):  
Service Sector ◽  
National Level ◽  
Consumption Tax ◽  
Tax Reforms ◽  
Tax Base ◽  
Tax System ◽  
Cascading Effects ◽  
The Road ◽  
Goods And Services ◽  
Positive Externalities

Goods and Services Tax (GST) is a part of the proposed tax reforms to evolve an efficient and harmonised consumption tax system in the country. GST is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. GST would give India a world class tax system and improve tax collections. It would end the long standing distortions of differential treatment of manufacturing and service sector. The introduction of GST will lead to the abolition of various central and state indirect taxes and eliminate the cascading effects of multiple layers of taxation. It is claimed that GST will facilitate seamless credit across the entire supply chain and across all states under a common tax base. The changeover to GST will be a game-changing tax reform measure which will significantly contribute to the buoyancy of tax revenues, acceleration of growth, and generation of many positive externalities. Once the integrated GST across the country is introduced, it will simplify tax administration and eliminate cascading of taxes. It will lead to reduction in the distortions in the structure of production, consumption and exports and further to a more efficient allocation of resources. The demand for manufactured goods can be expected to grow significantly. This paper explains the modalities of the proposed GST.

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