The Effect of Inflation on the Income Elasticity of Taxes

1976 ◽  
Vol 4 (3) ◽  
pp. 323-337 ◽  
Author(s):  
Jack P. Suyderhoud ◽  
Michael Veseth
Keyword(s):  
Income Tax ◽  
Income Elasticity ◽  
Property Tax ◽  
Real Income ◽  
Sales Tax ◽  
Price Inflation ◽  
Tax System ◽  
The Real ◽  
Income Elasticities ◽  
The Relationship

This paper defines the relationship between the nominal (or money) income elasticity and the real income elasticity of a tax system. Under most circumstances, the real and the nominal income elasticities differ. This difference has not been recognized by economists who rely strictly on nominal elasticities as an indicator of revenue adequacy or tax burden, a practice which can be misleading, especially under conditions of general price inflation. The income tax, sales tax and property tax are analyzed briefly in terms of their elasticity features.

E-Commerce and Sales Taxes in the United States

2008 ◽  
pp. 247-267
Author(s):  
Christopher G. Reddick
Keyword(s):  
Electronic Commerce ◽  
Internet Access ◽  
The United States ◽  
Sales Tax ◽  
Access Management ◽  
Tax System ◽  
Contentious Issue ◽  
System A ◽  
The Relationship ◽  
The U.S

This article examines the relationship between electronic commerce and the U.S. state sales and use tax system. A framework is used in this study of a high-quality tax system and it is applied to taxing electronic commerce sales. The first part of this article analyzed nine principles of an effective tax system, and divided these principles into the categories of adequacy of revenue, fairness of revenue, and management of revenue. In the second part of this article, these principles are tested to determine what impact electronic commerce taxation has on an effective revenue system. The results of these initial tests suggest that taxation of electronic commerce was associated with fairness in the tax system. In particular, the results suggested that states that had fairer tax systems were more likely to rely less on a sales tax and more on taxing Internet access. Management and adequacy of the revenue systems of states were not found to have a significant bearing on taxing electronic commerce. These results reinforce the existing public finance and legal theories which argue that the sales tax is not a fair revenue stream, and it should be re-evaluated especially in light of the contentious issue of taxing electronic commerce.

Economic Arguments for a New Consumption Tax

1992 ◽  
Vol 3 (1) ◽  
pp. 14-35
Author(s):  
John Freebairn
Keyword(s):  
Income Tax ◽  
Income Taxation ◽  
Sales Tax ◽  
Consumption Tax ◽  
Tax System ◽  
Payroll Tax ◽  
Goods And Services ◽  
Indirect Taxes ◽  
General Revenue ◽  
Revenue Efficiency

The revenue, efficiency, distributional and simplicity effects of using a GST to replace some existing indirect taxes and to reduce income taxation are assessed. Replacing the wholesale sales tax (WST), the general revenue raising portion of petroleum excise and payroll tax with a goods and services tax (GST) promises efficiency gains and negligible net redistribution. The principal case for using a GST to fund reductions in Australia's hybrid income tax system is to increase the productivity of saving and investment.

scholarly journals Endogeneity of the elasticities and the real exchange rate in a balance of payments constrained growth model: cross-country empirical evidence

2019 ◽  
Vol 5 (2) ◽  
pp. 214-238
Author(s):  
Renato S. Campos ◽  
Frederico Gonzaga Jayme Jr. ◽  
Gustavo Britto
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Income Elasticity ◽  
Growth Models ◽  
Balance Of Payments ◽  
Sustainable Growth ◽  
The Real ◽  
Income Elasticities ◽  
Sustainable Growth Rate ◽  
Cross Country

Balance of payments constrained growth models are notable for their longevity. This is especially true for the case of Thirlwall’s Law, which defines that a country’s sustainable growth rate is given by the ratio between the income elasticity of exports and that of imports. In light of this, the current paper explores the hypothesis that the income elasticities of this type of models are endogenous. The debate on the latter is resurgent in the literature.  The results provide evidence that the ratio is, indeed, exogenous, and that the level of the real exchange rate influences economic growth as it determines such ratio. In other words, the real exchange rate is important for improving non-price competitiveness without, however, making the ratio between elasticities endogenous.

scholarly journals Estimación de la elasticidad de la demanda de banano fresco en Estados Unidos

UDA AKADEM ◽  
2020 ◽  
pp. 156-183
Author(s):  
María Priscila León-Cando ◽  
 Luis Bernardo Tonon-Ordóñez
Keyword(s):  
United States ◽  
Price Elasticity ◽  
Income Elasticity ◽  
Demand Estimation ◽  
Income Elasticities ◽  
Price And Income Elasticities ◽  
Palabras Clave ◽  
Relationship Of ◽  
The Relationship ◽  
Banana Market

Debido a la importancia del banano en la economía ecuatoriana, es imprescindible analizar la demanda del principal mercado de banano fresco del mundo, Estados Unidos, así como estimar sus elasticidades, precio y renta de la demanda; y, analizar la relación del banano con otras frutas en este mercado. Para la estimación, se utilizó el método de Mínimos Cuadrados Ordinarios. Se determinó que, en este mercado con potencial de crecimiento, el banano es un bien inelástico y normal. El periodo analizado fue de 2001 a 2016.Palabras clave: Banano, Estados Unidos, Estimación demanda, Elasticidad precio, Elasticidad renta. Abstract. ue to the importance of banana in the Ecuadorian economy, is essential to analyze the demand of the world’s principal fresh banana market, United States, as well as estimate its price and income elasticities, and analyze the relationship of bananas with other fruits in this market. The Ordinary Minimum Squares Method was used for the estimation. It was determinated that in this market with potencial growth, bananas are inelastic, and considered a normal good. The period analyzed was from 2001 to 2016. Keywords: Banana, United States, Demand estimation, Price Elasticity, Income Elasticity

Electronic Commerce and the State Sales Tax System

2009 ◽  
pp. 26-46
Author(s):  
Christopher G. Reddick
Keyword(s):  
Electronic Commerce ◽  
Internet Access ◽  
Sales Tax ◽  
Access Management ◽  
High Quality ◽  
Tax System ◽  
Contentious Issue ◽  
System A ◽  
The Relationship ◽  
The U.S

This article examines the relationship between electronic commerce and the U.S. state sales and use tax system. A framework of a high-quality tax system is used in this study, and it is applied to taxing electronic commerce sales. The first part of this article analyzes nine principles of an effective tax system and divides these principles into the categories of adequacy of revenue, fairness of revenue, and management of revenue. In the second part of this article, these principles are tested to determine what impact electronic commerce taxation has on an effective revenue system. The results of these initial tests suggest that taxation of electronic commerce was associated with fairness in the tax system. In particular, the results suggested that states that had fairer tax systems were more likely to rely less on a sales tax and more on taxing Internet access. Management and adequacy of the revenue systems of states were not found to have a significant bearing on taxing electronic commerce. These results reinforce the existing public finance and legal theories that argue that the sales tax is not a fair revenue stream and that it should be reevaluated, especially in light of the contentious issue of taxing electronic commerce.

scholarly journals Activities and Operations with Cryptocurrencies and Their Taxation Implications: The Spanish Case

Laws ◽  
2019 ◽  
Vol 8 (3) ◽  
pp. 16 ◽  
Author(s):  
Sergio Luis Náñez Alonso
Keyword(s):  
Income Tax ◽  
Property Tax ◽  
Point Of View ◽  
Personal Income Tax ◽  
Tax System ◽  
Recent Information ◽  
Vending Machines ◽  
Special Mention ◽  
Ministry Of Finance ◽  
Shed Light

The purpose of this article was to attempt to shed light on the taxation of activities or actions related to cryptocurrencies. For this purpose, a small analysis was carried out on the nature, operation, and characteristics of cryptocurrencies. Subsequently, from the point of view of the Spanish tax system, the tax implications of the use, actions, and operations carried out with this virtual medium were discussed. The most recent information derived from the binding inquiries issued by the general directorate of taxes in Spain, an institution under the Ministry of Finance, was reviewed. This article analyzed whether the activities related to Bitcoin should be declared for the purposes of personal income tax, property tax, inheritance tax and finally, in the tax on transmissions of assets and documented legal acts. Finally, special mention was made of activities, such as the mining of Bitcoins in “Bitcoin farms” and the exploitation of websites for buying and selling cryptocurrencies and vending machines. Other collateral situations were also analyzed, such as the system to be used.

scholarly journals Tax Stability in Morocco

2019 ◽  
Vol 12 (1) ◽  
pp. 90
Author(s):  
Tahri Firdawss ◽  
Karim Mohamed
Keyword(s):  
Income Tax ◽  
Value Added ◽  
System Stability ◽  
Empirical Measure ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Revenues ◽  
The Stability ◽  
The Relationship ◽  
Stable Current

This paper aims to lead a reflection on Moroccan tax system stability, which is an important factor that promotes sustainability of public finance. Therefore, an assessment of the relationship between tax revenues and national GDP was conducted first, in order to get a global overview of the stability of the Moroccan tax system. Afterwards, we examine the empirical measure of each of the concepts, stability, growth rate and stabilizing influence for tax revenues in Morocco. The study focused on value added tax (TVA), IS (corporate tax), IR (income tax), and internal tax on consumption (TIC) over the period 1990-2017. The results demonstrate a good performance of tax revenues in terms of stability over the period 1990-2017, and shows that the Moroccan tax system includes taxes that generate stable current income (TIC and TVA), as well as elastic taxes correlated with economic growth (IS and IR).

scholarly journals Consumption of agricultural products in Finland in 1985

1976 ◽  
Vol 48 (4) ◽  
pp. 386-394
Author(s):  
Lauri Kettunen
Keyword(s):  
Dairy Products ◽  
Income Elasticity ◽  
Real Income ◽  
Price Policy ◽  
Agricultural Products ◽  
Future Price ◽  
Income Elasticities ◽  
Retail Prices ◽  
Per Capita ◽  
Per Capita Consumption

Forecasts of the per capita consumption of main agricultural products until 1985 are based a) on income elasticities and b) on an assumed growth of real income by 40 per cent in 10 years. In some cases such as meat, butter and margarine the development of the consumption will depend largely on the future price policy and therefore the forecasts can be considered as alternatives which seem possible but which may also turn out to be wrong. Comsumption forecasts for wheat and rye are based on an income elasticity of —0.3. So the consumption of wheat will fall from46.2 kg per capita in 1975 to 40 kg in 1985 and the consumption of rye from 22.0 to 20kg per capita, respectively. Consumption of fluid milk is assumed to fall 10 per cent in 10 years and would be 206 kg per capita in 1985. The consumption of butter will depend on the price policy of butter in relation to margarine. If the ratio of the retail prices of these products remains as constant as it has been for some years, the consumption of butter is likely to be about 10 kg per capita in 1985. The cheese consumption is expected to increase annually by 4 per cent up to 8.5 kg per capita in 1985.The consumption of other dairy products will stay at the present level. The consumption of eggs will, on the other band, increase 20 per cent during the next 10 years. Beef and pork are close substitutes the consumption of which depends largely on the price policy. Since the supply of beef may not increase due to the declining number of dairy cows it is assumed that the retail price of beef will rise faster than that of pork and therefore the demand pressure on meat will shift to pork, the consumption of which expected to increase by 1kg per capita per year so that it will be 35 kg in 1985. The diet of 1985 is checked by calculating its energy, fat and protein content. The results seem to be rather acceptable.

scholarly journals Assessment of direct taxation instruments

2015 ◽  
Vol 1 (7) ◽  
pp. 147
Author(s):  
Anita Puzule
Keyword(s):  
Income Tax ◽  
Property Tax ◽  
Business Environment ◽  
Tax Rates ◽  
Tax System ◽  
Direct Taxation ◽  
System Improvement ◽  
Tax Systems ◽  
Descriptive Method ◽  
Direct Tax

Creation and development of a favourable business environment in regions is unthinkable without an appropriate tax system. The research study aims to assess the direct tax system in Latvia comparing it with the tax systems in Estonia, Sweden, Finland and Denmark in order to detect common features and differences, as well as to learn the experience that could be adopted in Latvia. The research tasks are to evaluate criteria of the tax policy and to analyse development directions of the direct tax system. The monographic descriptive method, statistical methods in economics, methods of logic and construction are used in the research. Relationships between the elements of the direct tax are explored, and differences between them are determined in the research; the conclusions that could be considered for the tax system improvement in Latvia are made. Evaluation of the direct tax systems in other countries shows that only distributed profit is subject to the corporate income tax in Estonia. The progressive rates are applied to the personal income tax; non-taxable income is higher; as well the tax distribution among budgets differs. In its turn, social security contributions depend on the financing arrangements of the services provided, and the property tax rates are determined by the municipalities, and they are affected by the location of the property and purpose of its use.

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