Ten Principles for State Tax Incentives

1995 ◽  
Vol 9 (4) ◽  
pp. 339-355 ◽  
Author(s):  
Keith R. Ihlanfeldt
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Empirical Evidence ◽  
Tax Incentives ◽  
The State ◽  
Incentive Programs ◽  
State Tax

The use of tax incentives for economic development is growing among states. This growth is partially caused by a response to new incentives of neighboring states, and similar incentive laws are passed in the interest of remaining competitive. As a result, many states have adopted tax incentives not well founded on economic theory or empirical evidence. This article draws on the latter to develop ten principles that states can employ to enhance the fairness and effectiveness of tax incentives. To illustrate their application, the principles are used to evaluate the state of Georgia's incentive programs.

Effectiveness of Tax Policy of Ukraine: Evidence and Economy Implications

2020 ◽  
pp. 124-131
Author(s):  
Olena P. Slavkova ◽  
Oksana I Zhilinska ◽  
Maksym Palienko
Keyword(s):  
Economic Development ◽  
Tax Evasion ◽  
Tax Policy ◽  
The State ◽  
State Budget ◽  
Advantages And Disadvantages ◽  
State Tax ◽  
State And Local ◽  
Tax Payments

The article deals with the peculiarities of the formation and implementation of tax policy in the country. The analysis of change of tax receipts to the state and local budgets is carried out. The role of tax payments in the economic development of the country is determined. The efficiency of the state tax policy in Ukraine is analyzed, its advantages and disadvantages are determined. The important role of tax payments in stimulating economic and social development is substantiated. The analysis of the elasticity of change of indicators of economic development of the country from the change of volume of tax receipts to the budget is carried out. The necessity of improving the existing policy of establishing, accrual, payment, and distribution of tax revenues as one of the most promising areas to stimulate economic growth is concluded. Keywords: tax policy, revenues, tax evasion, state budget, elasticity, economic development

THE GALWAY PACKET-BOAT CONTRACT AND THE POLITICS OF PUBLIC EXPENDITURE IN MID-VICTORIAN IRELAND

2016 ◽  
Vol 59 (3) ◽  
pp. 747-774 ◽  
Author(s):  
DOUGLAS KANTER
Keyword(s):  
Public Finance ◽  
Economic Theory ◽  
Economic Development ◽  
Interest Groups ◽  
Regional Development ◽  
Public Expenditure ◽  
State Intervention ◽  
The State ◽  
British Government

AbstractThis article argues that political considerations, economic theory, attitudes toward public finance, and concerns about regional development all influenced contemporary responses to the Galway packet-boat contract of 1859–64. Though historians have conventionally depicted the dispute over the contract as an episode in Victorian high politics, it maintains that the controversy surrounding the agreement between the Galway Company and the state cannot be understood solely in terms of party manoeuvre at Westminster. In the context of the Union between Britain and Ireland, the Galway contract raised important questions about the role of the British government in fostering Irish economic development through public expenditure. Politicians and opinion-makers adopted a variety of ideologically informed positions when addressing this issue, resulting in diverse approaches to state intervention, often across party lines. While political calculation and pressure from interest groups certainly affected policy, the substantive debate on the contract helped to shape the late Victorian Irish policy of both British parties by clarifying contemporary ideas about the economic functions appropriate to the Union state.

scholarly journals Evaluation of the tax benefit effectiveness for certain types of activities in Ukraine (part 2)

2021 ◽  
Vol 2021 (6) ◽  
pp. 40-54
Author(s):  
Alla SOKOLOVSKA ◽  
Keyword(s):  
Tax Incentives ◽  
The State ◽  
Annual Reports ◽  
Effective Control ◽  
Production Cycle ◽  
State Support ◽  
Space Industry ◽  
Council Directive ◽  
State Tax ◽  
Tax Benefits

The second part of the article considers the consequences of assessing tax benefits for cinematography and the space industry, which they enjoyed in 2014-2019. Since these types of activities, in addition to tax benefits, also received direct state support in the form of expenditures on targeted budget programs, the effectiveness of their aggregate state support was analyzed. It was found that for both activities it was quite effective. At the same time, of the four types of activity which were the subject of analysis, the largest state support during this period was provided to cinematography, the smallest – to the space industry, which indicates real state priorities. The analysis of state support for priority activities in Ukraine showed that the most common form of tax benefits provided to them, in contrast to EU countries, is exemption from VAT for transactions of supply of goods to the customs territory of Ukraine. However, the application of such a benefit (this exemption becomes a benefit only in the case of a long production cycle), firstly, requires the establishment of effective control at customs over the legality of its provision and accounting for the amount of the benefit and losses of budget revenues due to its provision, as well as the transfer of relevant information from the customs authorities to the State Tax Service for the purpose of taking them into account in general reports. Secondly, considering that this contradicts the requirements of Council Directive 2006/112/EC, its truly temporary application must be ensured. In general, according to the results of the study, it was concluded that the introduction of constant monitoring of the effectiveness of the use of tax benefits requires clarification of the list of benefits that are losses of budget revenues, and that do not lead to such losses; providing public access to the reports of the State Tax Service on the amounts of benefits that are losses of budget revenues; ensuring proper control over the legality of the application of tax benefits, the completeness and accuracy of their accounting, the fulfillment of the conditions for the provision and targeted use of funds released as a result of the application of tax incentives prescribed in the legislation; inclusion of information about tax expenditures in reports on the execution of state budget, preparation of annual reports on the fulfillment of the conditions for the provision of tax benefits defined in the Tax Code of Ukraine; in case of using temporary tax incentives, a mandatory audit of their effectiveness and efficiency as a prerequisite for extending the period of their use.

Fade to Black? Exploring Policy Enactment and Termination Through the Rise and Fall of State Tax Incentives for the Motion Picture Industry

2016 ◽  
Vol 45 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Michael Thom ◽  
Brian An
Keyword(s):  
Motion Picture ◽  
State Level ◽  
Tax Incentives ◽  
Economic Diversification ◽  
Policy Termination ◽  
Incentive Programs ◽  
State Tax ◽  
National Trends ◽  
Shed Light

Policy termination has received less scholarly attention than policy diffusion, and empirical state-level studies that examine the rise and fall of the same policy are mostly absent from the literature. This study assesses the factors that led more than 45 states to enact and some to later repeal Motion Picture Incentive programs, a collection of tax incentives aimed at facilitating job creation and economic diversification. We find program enactments were driven by rising unemployment and national but not bordering state imitation. Falling unemployment and national trends drove subsequent terminations, but in many states, their impact was overwhelmed by the influence of incentive spending, which greatly reduced termination likelihood. These results not only shed light on policy enactments and terminations in general, but also inform scholarship on state tax incentives and the role of competitive factors in their creation and repeal—or lack thereof.

THE ROLE OF THE STATE IN THE DEVELOPMENT OF POSTCEINSIAN THEORIES OF ECONOMIC GROWTH AND ENVIRONMENTAL PROTECTION

2017 ◽  
Author(s):  
Oleg Yarema ◽  
◽  
Bohdan Dolinsky ◽  
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Economic Development ◽  
Environmental Protection ◽  
Historical Perspective ◽  
The State ◽  
Role Of The State

Economic growth is a fundamental category of economic theory. That economic growth determines the dynamics of economic development, its credibility in the international arena and historical perspective.

Manajemen Ekonomi Outopilot: Kegagalan Negara Mencari Identitas?

Liquidity ◽  
2018 ◽  
Vol 1 (2) ◽  
pp. 142-152
Author(s):  
Mukhaer Pakkanna
Keyword(s):  
Economic Development ◽  
National Economy ◽  
The State ◽  
Political Democracy ◽  
Economic Democracy ◽  
Quality Of Democracy ◽  
Economic Disparities ◽  
National Economic ◽  
Production And Distribution

Political democracy should be equivalent to the economic development of the quality of democracy, economic democracy if not upright, even the owner of the ruling power and money, which is parallel to force global corporatocracy. Consequently, the economic oligarchy preservation reinforces control of production and distribution from upstream to downstream and power monopoly of the market. The implication, increasingly sharp economic disparities, exclusive owner of the money and power become fertile, and the end could jeopardize the harmony of the national economy. The loss of national economic identity that makes people feel lost the “pilot of the state”. What happens then is the autopilot state. Viewing unclear direction of the economy, the national economy should clarify the true figure.

Structuralism as a Pamphlet (On the Book by E. Reinert “How Rich CountriesGot Rich... And Why Poor Countries Stay Poor”. 2nd ed.)

2014 ◽  
pp. 147-153
Author(s):  
P. Orekhovsky
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Structural Analysis ◽  
Increasing Returns ◽  
The Other ◽  
Static Theory ◽  
Poor Countries ◽  
Historical School ◽  
Socio Economic Development ◽  
The Relationship

The review outlines the connection between E. Reinert’s book and the tradition of structural analysis. The latter allows for the heterogeneity of industries and sectors of the economy, as well as for the effects of increasing and decreasing returns. Unlike the static theory of international trade inherited from the Ricardian analysis of comparative advantage, this approach helps identify the relationship between trade, production, income and population growth. Reinert rehabilitates the “other canon” of economic theory associated with the mercantilist tradition, F. Liszt and the German historical school, as well as a reconside ration of A. Marshall’s analysis of increasing returns. Empirical illustrations given in the book reveal clear parallels with the path of Russian socio-economic development in the last twenty years.

Minimizing Missed Opportunities: Modeling Relationships between the State and Business in Russia

2009 ◽  
pp. 42-61
Author(s):  
A. Oleynik
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Common Good ◽  
The State ◽  
Power Relationships ◽  
Individual Decision ◽  
Missed Opportunities ◽  
Power Domination ◽  
Individual Decision Making ◽  
Optimal Outcomes

Power involves a number of models of choice: maximizing, satisficing, coercion, and minimizing missed opportunities. The latter is explored in detail and linked to a particular type of power, domination by virtue of a constellation of interests. It is shown that domination by virtue of a constellation of interests calls for justification through references to a common good, i.e. a rent to be shared between Principal and Agent. Two sources of sub-optimal outcomes are compared: individual decision-making and interactions. Interactions organized in the form of power relationships lead to sub-optimal outcomes for at least one side, Agent. Some empirical evidence from Russia is provided for illustrative purposes.

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