scholarly journals Does Cutting the Tax Rate to Zero Induce Behavior Different from Other Tax Cuts? Evidence from Pakistan

2020 ◽  
Vol 102 (3) ◽  
pp. 426-441 ◽  
Author(s):  
Mazhar Waseem
Keyword(s):  
Low Income ◽  
Tax Evasion ◽  
Tax Reforms ◽  
Middle Income ◽  
Tax Rate ◽  
Taxable Income ◽  
Administrative Records ◽  
The Difference ◽  
Wage Earners ◽  
Tax Cuts

Using a series of Pakistani tax reforms and administrative records, I document that taxable income responses induced by to-zero tax cuts are orders of magnitude larger than ones induced by similar-sized other cuts. This finding is remarkably robust to alternative specifications and holds for both the self-employed and wage earners. I explore salience, selective enforcement, and discontinuous evasion costs as explanations of the observed behavior. I find that the data favor the last explanation. The difference between the two sets of responses is primarily driven by a large, discrete tax evasion response, which is included in the former but not in the latter behavior. I estimate the difference as a lower bound on tax evasion, showing that at least 70% of the income of low- and middle-income self-employed and 1% of low-income wage earners goes unreported.

IPRs and Innovation, Technology Transfer, and Economic Welfare

2020 ◽  
pp. 1536-1568
Author(s):  
Juan Manuel Gil ◽  
Luis Angel Madrid ◽  
Carlos Hernán Fajardo
Keyword(s):  
Technology Transfer ◽  
Low Income ◽  
Positive Impact ◽  
Low Income Countries ◽  
Economic Welfare ◽  
Middle Income ◽  
Middle Income Countries ◽  
Transfer Of Technology ◽  
The Difference ◽  
Dissemination Of Technology

The TRIPS agreement states that Intellectual Property Rights (IPRs) protection should contribute to the promotion of technological innovation, economic welfare, and to the transfer and dissemination of technology. However, there is still no consensus on whether IPRs protection has achieved its goal. Thus, the chapter provides a discussion on how the impact of IPRs on innovation, technology transfer, and economic welfare is affected by the difference in the income level of the countries. The results suggest that in high-income and upper middle-income countries, IPRs have a positive impact in these variables. Nevertheless, it seems that in lower middle-income and low-income countries, IPRs have not increased innovation, spurred transfer of technology. or created economic welfare.

scholarly journals Penyesuaian Lapisan dan Tarif PPh Orang Pribadi: Agresif atau Progresif?

Owner ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 709-721
Author(s):  
Kalyana Mitta Kristanti
Keyword(s):  
Income Tax ◽  
Positive Impact ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Middle Income ◽  
Tax Rate ◽  
Tax Harmonization ◽  
The Difference ◽  
The Government

In 2022, Indonesia would apply changes in tax brackets and rates for personal income tax. This adjustment is based on the Article 17 Paragraph 1 Tax Harmonization Law Number 7 of 2021. The government tries to accommodate the needs of the community through formulating process of this regulation. In particular, it provides convenience to the lower-middle income community and encourages an even distribution of income. People belonging to the high wealth income will be subject to the highest tariffs that have just been set through this law. Through a qualitative descriptive method in which data collection is carried out by taking from literature review; law, articles, books, and website, the author tries to analyze changes in brackets and rates of personal income tax. This study presents illustrations of the calculation to explain the difference in the amount of income tax payable before and after the implementation of the Tax Harmonization Law. In addition, the analysis of the principles of equity and democracy on the adjustment of layers and tax rates is elaborated in this paper. The results obtained explain that with the application of the new tax rate, taxpayers get a tax burden relief because the tax expense is lower due to the broadening of income range. However, wealthy taxpayers will pay more taxes because of the higher tax rates. This condition proves that the new tax rate supports vertical fairness in the taxation system. In addition, the implementation of regulations related to tax rates adjustment provides evidence that the implementation of democracy has been implemented. The adjustment of tax brackets and rates has a positive impact on the community and the government so that the allocation of tax revenues can run optimally to support the welfare of the community.

Individual Preferences as Supply Determinants in the Municipal and Federal Bond Markets

1977 ◽  
Vol 5 (2) ◽  
pp. 175-202 ◽  
Author(s):  
Royd. Adams
Keyword(s):  
Interest Rates ◽  
Low Income ◽  
Income Tax ◽  
Bond Markets ◽  
Personal Interest ◽  
Tax Reforms ◽  
Tax Rate ◽  
Individual Preferences ◽  
Small Stock ◽  
Rate Ratios

This paper adds to the small stock of existing literature on the determinants of individual preferences regarding tax postponement via government borrowing. It is shown that because of the treatment of personal interest receipts and payments under the progressive U.S. individual income tax, there is reason for low-income persons to prefer bond-financed tax postponement, while higher-income persons have reason to oppose government borrowing. Since the income level separating the groups with opposing preferences depends on both interest rate ratios and the income tax rate structure, it is possible to predict the effect of tax reforms, inflation, and political reforms upon the quantity of government borrowing and the interest rates which apply to it.

scholarly journals Corporate Income Tax Rate and Foreign Direct Investment: A Cross-Country Empirical Study

2020 ◽  
Vol 66 (1) ◽  
pp. 25
Author(s):  
Amalia Indah Sujarwati ◽  
Riatu Mariatul Qibthiyyah
Keyword(s):  
Foreign Direct Investment ◽  
Low Income ◽  
Income Tax ◽  
Direct Investment ◽  
Corporate Income Tax ◽  
Low Income Countries ◽  
Tax Havens ◽  
Middle Income ◽  
Tax Rate ◽  
The Impact

This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003–2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.

The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records

2014 ◽  
Vol 6 (2) ◽  
pp. 19-53 ◽  
Author(s):  
Michael P. Devereux ◽  
Li Liu ◽  
Simon Loretz
Keyword(s):  
Tax Revenue ◽  
Tax Rates ◽  
Corporate Tax ◽  
Marginal Rate ◽  
Tax Rate ◽  
Taxable Income ◽  
Corporation Tax ◽  
Tax Returns ◽  
The Difference ◽  
New Evidence

We estimate the elasticity of corporate taxable income with respect to the statutory corporation tax rate using the population of UK corporation tax returns. We analyze bunching in the distribution of taxable income at kinks in the marginal rate schedule. We decompose this elasticity into an elasticity of total income with respect to the corporation tax rate, and an elasticity of the share of income taken as profit with respect to the difference between the personal and corporate tax rates. This implies a marginal deadweight cost at the £10,000 kink of around 29 percent of tax revenue. (JEL G32, H24, H25, L25)

scholarly journals Rates of rehospitalisation in the first 2 years among preterm infants discharged from the NICU of a tertiary children hospital in Vietnam: a follow-up study

BMJ Open ◽  
2020 ◽  
Vol 10 (10) ◽  
pp. e036484
Author(s):  
Chuong Huu Thieu Do ◽  
Malene Landbo Børresen ◽  
Freddy Karup Pedersen ◽  
Ronald Bertus Geskus ◽  
Alexandra Yasmin Kruse
Keyword(s):  
Preterm Infants ◽  
Low Income ◽  
Neonatal Intensive Care ◽  
Respiratory Diseases ◽  
Scale Up ◽  
Middle Income ◽  
Middle Income Countries ◽  
Potential Risk Factors ◽  
The Difference

ObjectivesTo describe the characteristics of rehospitalisation in Vietnamese preterm infants and to examine the time-to-first-readmission between two gestational age (GA) groups (extremely/very preterm (EVP) vs moderate/late preterm (MLP)); and further to compare rehospitalisation rates according to GA and corrected age (CA), and to examine the association between potential risk factors and rehospitalisation rates.Design and settingA cohort study to follow up preterm infants discharged from a neonatal intensive care unit (NICU) of a tertiary children’s hospital in Vietnam.ParticipantsAll preterm newborns admitted to the NICU from July 2013 to September 2014.Main outcomesRates, durations and causes of hospital admission during the first 2 years.ResultsOf 294 preterm infants admitted to NICU (all outborn, GA ranged from 26 to 36 weeks), 255 were discharged alive, and 211 (83%) NICU graduates were followed up at least once during the first 2 years CA, of whom 56% were hospital readmitted. The median (IQR) of hospital stay was 7 (6–10) days. Respiratory diseases were the major cause (70%). Compared with MLP infants, EVP infants had a higher risk of first rehospitalisation within the first 6 months of age (p=0.01). However, the difference in risk declined thereafter and was similar from 20 months of age. There was an interaction in rehospitalisation rates between GA and CA. Longer duration of neonatal respiratory support and having older siblings were associated with higher rehospitalisation rates. Lower rates of rehospitalisation were seen in infants with higher cognitive and motor scores (not statistically significant in cognitive scores).ConclusionsHospital readmission of Vietnamese preterm infants discharged from NICU was frequent during their first 2 years, mainly due to respiratory diseases. Scale-up of follow-up programmes for preterm infants is needed in low-income and middle-income countries and attempts to prevent respiratory diseases should be considered.

SMS-based intervention in type 2 diabetes: clinical trial in Senegal

2018 ◽  
Vol 4 (3) ◽  
pp. 142-146 ◽  
Author(s):  
Matthieu Wargny ◽  
Line Kleinebreil ◽  
Said Norou Diop ◽  
Maïmouna Ndour-Mbaye ◽  
Mady Ba ◽  
...  
Keyword(s):  
Type 2 Diabetes ◽  
Clinical Trial ◽  
Low Income ◽  
Short Message ◽  
Middle Income ◽  
Mobile Telephones ◽  
Message Service ◽  
The Difference ◽  
Medical Teams

ObjectiveSince 2014 Senegal has benefited from regular awareness-raising Short Message Service (SMS) campaigns (Be He@lthy, Be Mobile initiative) directed at people who have signed up, for free, to the ‘mDiabète’ programme. We report on an evaluation of its impact on diabetes control.DesignThe clinical trial was designed to send daily SMS during 3 months to people with type 2 diabetes. Due to centre randomisation, SMS were sent from inclusion (M0) to month 3 (M3) to people in centre S and from M3 to month 6 (M6) to people in centre P.SettingMedical centre S in the northwestern suburbs of Dakar; centre P in Popenguine, 70 km south of Dakar.ParticipantsIn February 2017, people with type 2 diabetes were consecutively recruited in the two centres. Complete data were available from 186 of these people.Main outcome measuresHbA1c was measured in the two centres with the same assay throughout the study. The primary end point was the difference between centres for the change in HbA1c from M0 to M3. Secondary end points were the evolution of HbA1c in centres S and P between M3 and M6.ResultsThe HbA1c change from M0 to M3 in centre S was better than in centre P, with a median difference of −0.4%, quartiles (−1.0; 0.3) versus 0.2% (-0.5; 0.8), respectively (p=0.0038). HbA1c decreased over the 3 months after having stopped SMS in centre S and was confirmed in centre P. The campaign cost was €2.5 (US$3.1) per person.ConclusionsIn Senegal, SMS sending was associated with an improved glycaemic control in people with type 2 diabetes. As SMS has a high penetration in low-income, middle-income countries where medical resources are scarce, health interventions using mobile telephones should be developed to facilitate exchanges between people with diabetes and medical teams; this may reduce diabetes-related complications.

What Determines the Geography of Entrepreneurship? A Comparative Study Between Sub-Saharan Africa and South-East Asia

2021 ◽  
Vol 7 (2) ◽  
pp. 246-262
Author(s):  
Beverlley Madzikanda ◽  
Cai Li ◽  
Francis Tang Dabuo
Keyword(s):  
East Asia ◽  
Low Income ◽  
Technology Development ◽  
Sub Saharan Africa ◽  
Entrepreneurial Activity ◽  
South East Asia ◽  
African Countries ◽  
Middle Income ◽  
The Difference ◽  
Sub Saharan

There is a clear disparity between different regions of the world regarding the type and number of entrepreneurs. These differences are most prominent between low-income regions like Africa and middle- to high-income regions such as South-East Asia. Thirty years ago, Asian and African countries were at similar stages of development, but today their difference in entrepreneurship and economic development is massive, which makes them intriguing cases to compare. To investigate the extent of this and explain why it happens, this study identifies the main influences on entrepreneurial activity, according to entrepreneurship ecosystem (EE) theory and knowledge spillover theory. Making use of multivariate analysis of variance, the most prominent factors responsible for the difference in entrepreneurship capacity in the regions were found to be technology development, political situation and the quality of public institutions. South-East Asia provides these to a sufficient degree thereby giving rise to a healthy EE, while Africa’s ability to build this infrastructure is still in its embryonic stage. This study’s efficacy is to inform on possible policies that low- and middle-income nations can follow to build entrepreneurship in their current economic situations, as well as to expand EE theory in the underexplored context of developing countries.

IPRs and Innovation, Technology Transfer, and Economic Welfare

2017 ◽  
pp. 91-131
Author(s):  
Juan Manuel Gil ◽  
Luis Angel Madrid ◽  
Carlos Hernán Fajardo
Keyword(s):  
Technology Transfer ◽  
Low Income ◽  
Positive Impact ◽  
Low Income Countries ◽  
Economic Welfare ◽  
Middle Income ◽  
Middle Income Countries ◽  
Transfer Of Technology ◽  
The Difference ◽  
Dissemination Of Technology

The TRIPS agreement states that Intellectual Property Rights (IPRs) protection should contribute to the promotion of technological innovation, economic welfare, and to the transfer and dissemination of technology. However, there is still no consensus on whether IPRs protection has achieved its goal. Thus, the chapter provides a discussion on how the impact of IPRs on innovation, technology transfer, and economic welfare is affected by the difference in the income level of the countries. The results suggest that in high-income and upper middle-income countries, IPRs have a positive impact in these variables. Nevertheless, it seems that in lower middle-income and low-income countries, IPRs have not increased innovation, spurred transfer of technology. or created economic welfare.

scholarly journals The concept of goods and service tax (GST) and its impact on indian economy

2017 ◽  
Vol 7 (2) ◽  
pp. 362-367
Author(s):  
Shanthini B.N ◽  
Leeladevi C
Keyword(s):  
Tax Evasion ◽  
Service Sector ◽  
Central Government ◽  
National Level ◽  
Tax Rates ◽  
Tax Reforms ◽  
Fiscal Health ◽  
Tax Rate ◽  
Indian Economy ◽  
Goods And Services

Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, sale andconsumption of goods and services at national level. Goods and Services Tax integrates Stateeconomies and boost overall growth. Currently, companies and businesses pay lot of indirecttaxes such as VAT, service tax, sales tax, entertainment tax, octroi and luxury tax. On GSTimplementation all these taxes cease to exist. There is only one tax, that too at the nationallevel, monitored by the central government. GST is levied at the final point of consumptionand not at the manufacturing stage. Previously, separate tax rates are applied to goods andservices. Under GST, there is only one tax rate for both goods and services. The goods andservices Tax is an improvement towards a comprehensive indirect tax reforms in the country.Integration of goods and services taxation would give India a world class tax system andimprove tax collections. It would end distortions of differential treatments of manufacturingand service sector. GST is expected to create a business friendly environment and henceinflation rates would come down overtime as a uniform tax rate is applied. It will alsoimprove government's fiscal health as the tax collection system would become moretransparent, making tax evasion difficult. This paper is a study of the concept of goods andservice tax and its impact on Indian economy. It also aims to know the advantages andchallenges of GST in Indian scenario

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