Researches on Optimal Tax Rate and Its Effect of Copper Mine Resource Tax in China

Purpose The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun, depicted as the Laffer curve. Design/methodology/approach The paper analyses time series data for the period 1996 to 2014 using the autoregressive distributed lag (ARDL) approach. Findings The paper finds that the corporate tax rate has a dual effect on corporate tax revenue over the study period. It shows an inverted U-shape relationship between the corporate tax rate and corporate tax revenue and reveals that the optimal tax rate is 25.5156 per cent. Inferentially, a positive relationship exists between the two variables prior to the optimal tax rate, and a negative relationship prevails afterwards. A further test of causality shows a long-run unidirectional causality between corporate tax rate and corporate tax revenue. Research limitations/implications First, it should be noted that the policy was not implemented in isolation. Several other tax incentives were given to corporate tax payers, and therefore, such incentives should be controlled for to have a more insightful evaluation of the policy. Second and most important, there is a need to investigate whether the increased cash flow available to firms as a result of the reduction in the corporate tax rate adds value to firms. It is also necessary to investigate whether firms’ stakeholders benefited from the increased cash flow or was there managerial diversion of firms’ resources. Practical implications The policy of gradual reduction of the corporate tax rate in Malaysia is suspected to have a positive impact on the productivity of Malaysian companies, which has contributed to an increase in corporate tax revenue. It also has a positive impact on the economic growth of the country. It means that the lower corporate tax rate has actually reduced the cost of doing business in the country. Originality/value The benefit of increased corporate tax revenue needs to be investigated empirically for insightful policy evaluation. In Malaysia, however, such investigation is close to non-existent to the best knowledge of the researchers. Thus, the present study aims at investigating the impact of the policy of gradual reduction of the corporate tax rate on corporate tax revenue over an 18-year period from 1996 to 2014.

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ABATEMENT TECHNOLOGY ADOPTION UNDER UNCERTAINTY

Macroeconomic Dynamics ◽

10.1017/s1365100509080201 ◽

2009 ◽

Vol 13 (4) ◽

pp. 493-522 ◽

Cited By ~ 10

Author(s):

Aude Pommeret ◽

Katheline Schubert

Keyword(s):

Technology Adoption ◽

Risk Aversion ◽

Equilibrium Model ◽

Real Option ◽

New Technology ◽

Elasticity Of Substitution ◽

Tax Rate ◽

Optimal Tax ◽

Abatement Technology ◽

Increasing Function

New technology has been credited with solving environmental problems by mitigating the effects of pollutants. We construct a general equilibrium model in which abatement technology is a real option and pollution's (negative) amenity value alters both risk aversion and the intertemporal elasticity of substitution. We derive the tax scheme such that in a decentralized economy agents adopt the abatement technology at the time that is socially optimal. We show that the higher the greenness of preferences, the earlier the adoption and the higher the optimal tax rate. We also obtain that adoption is fostered by uncertainty if the effective intertemporal elasticity of substitution is large enough, but is not affected by uncertainty if this elasticity is low. Moreover, the optimal tax rate, which only exists if the effective intertemporal elasticity of substitution is high, is an increasing function of uncertainty.

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A Note On The Principle Of Equal Opportunities

Journal of Income Distribution ◽

10.25071/1874-6322.5573 ◽

2007 ◽

pp. 128

Author(s):

Fernando Cabrales ◽

Ana Fernández ◽

Fritz Grafe

Keyword(s):

Empirical Analysis ◽

Optimal Taxation ◽

Oecd Countries ◽

Developing Economy ◽

Equal Opportunities ◽

Tax Rate ◽

Income Differentials ◽

Optimal Tax ◽

Equality Of Opportunities ◽

The Individual

This note presents an empirical analysis of optimal taxation in Chile, adopting Roemer’s equality of opportunities as the evaluation criterion. The equality of opportunities optimal tax rules seek to equalize income differentials arising from factors beyond the control of the individual. Roemer’s theory of equality of opportunities (Roemer, 1998) has been employed to compute the extent to which tax-andtransfer regimes in some OECD countries equalize opportunities among citizens for income acquisition. In this note we apply this approach to Chile, a developing economy, and compare the results to those reported in Roemer, Aaberge, Colombino, Fritzell, Jenkins, Marx, Page, Pommer, Ruiz-Castillo, Segundo, Tranaes, Wagner and Zubiri (2003). We find that the optimal tax rate in Chile according to Roemer’s equalopportunities approach should be zero.

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Simulation and Analysis on the Optimal Tax Rate of Water Resources in Yunnan Province

IOP Conference Series Earth and Environmental Science ◽

10.1088/1755-1315/267/6/062034 ◽

2019 ◽

Vol 267 ◽

pp. 062034

Author(s):

Min Li ◽

Chunxue Liu ◽

Shuang Xu

Keyword(s):

Water Resources ◽

Yunnan Province ◽

Tax Rate ◽

Optimal Tax

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Optimal Alcohol Taxes for Australia

Forum for Health Economics & Policy ◽

10.1515/1558-9544.1276 ◽

2012 ◽

Vol 15 (2) ◽

Cited By ~ 4

Author(s):

James J. Fogarty

Keyword(s):

Relative Price ◽

Alcoholic Beverages ◽

Tax Rates ◽

Tax Rate ◽

Excise Tax ◽

Beverage Type ◽

Optimal Tax ◽

Pure Alcohol ◽

Price Responsiveness ◽

Current Alcohol

The 2010 Australian government tax review suggested Australia move to a uniform excise tax rate for all alcoholic beverages. Here, a model is presented and calibrated that shows the optimal per litre of pure alcohol (LAL) tax rates for beer, wine, spirits, and ready-to-drink spirits are substantially different to both current alcohol tax rates and the uniform tax rate recommended by the tax review. Specifically, given an individual consumer utility model, the best estimate values of the welfare maximising LAL tax rates are: $37 for beer, $11 for wine, $50 for spirits, and $77 for ready-to-drink spirits. The variation in the optimal tax rate across beverage types flows from differences in the externality costs associated with the consumption of each beverage type, and differences in the proportion of moderate consumption and abusive consumption associated with each beverage type. In addition, it is shown that the optimal tax rates are influenced by the range of costs that are considered to be externality costs, and the relative price responsiveness of abusers and moderate consumers.

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