scholarly journals Measuring the Effects of Corporate Tax Cuts

2018 ◽  
Vol 32 (4) ◽  
pp. 97-120 ◽  
Author(s):  
Alan J. Auerbach
Keyword(s):  
Multinational Corporations ◽  
Income Tax ◽  
Capital Investment ◽  
Corporate Income Tax ◽  
Tax Law ◽  
Corporate Tax ◽  
The Law ◽  
Jobs Act ◽  
The Impact ◽  
Tax Cuts

On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA), the most sweeping revision of US tax law since the Tax Reform Act of 1986. The law introduced many significant changes. However, perhaps none was as important as the changes in the treatment of traditional “C” corporations—those corporations subject to a separate corporate income tax. Beginning in 2018, the federal corporate tax rate fell from 35 percent to 21 percent, some investment qualified for immediate deduction as an expense, and multinational corporations faced a substantially modified treatment of their activities. This paper seeks to evaluate the impact of the Tax Cuts and Jobs Act to understand its effects on resource allocation and distribution. It compares US corporate tax rates to other countries before the 2017 tax law, and describes ways in which the US corporate sector has evolved that are especially relevant to tax policy. The discussion then turns the main changes of the Tax Cuts and Jobs Act of 2017 for the corporate income tax. A range of estimates suggests that the law is likely to contribute to increased US capital investment and, through that, an increase in US wages. The magnitude of these increases is extremely difficult to predict. Indeed, the public debate about the benefits of the new corporate tax provisions enacted (and the alternatives not adopted) has highlighted the limitations of standard approaches in distributional analysis to assigning corporate tax burdens.

scholarly journals EMPIRICAL RELATIONSHIP BETWEEN CORPORATE INCOME TAX, GOVERNMENT REVENUE, AND EMPLOYMENT IN OECD COUNTRIES

2021 ◽  
Vol 7 (3(43)) ◽  
pp. 18-33
Author(s):  
Vassilios Zoumpoulidis
Keyword(s):  
Correlation Analysis ◽  
Income Tax ◽  
Empirical Relationship ◽  
Oecd Countries ◽  
Corporate Income Tax ◽  
Government Revenue ◽  
Corporate Tax ◽  
The Impact

This paper applies the technique of correlation analysis to find out the impact of corporate tax on government revenue and employment in OECD countries. The findings of the study suggest that there is no relationship between corporate income tax, government revenue, and employment during 2000 and 2019.

Dampak Perubahan Undang-Undang No. 36 Tahun 2008 terhadap Penerapan PPH Potong Pungut pada Perusahaan Jasa Cleaning Service (Studi Kasus pada PT. Jasa Mulia Iramandiri)

2010 ◽  
Vol 6 (02) ◽  
pp. 61
Author(s):  
Rizki Ahmad Fauzi
Keyword(s):  
Income Tax ◽  
Research Method ◽  
Secondary Data ◽  
Research Data ◽  
Financial Statement ◽  
Tax Law ◽  
History Of ◽  
Income Tax Law ◽  
The Law ◽  
The Impact

The introdution described about the history of income tax, the book observation concerning about the meaning of Tax and the chronological alteration of the Income Tax regulations. Research Method described the structure of PT. Jasamulia Iramandiri, along the literature using research data as a secondary data The comparison between the old Law on the new Act has some interesting differences to explore, also elucidate between Old law dan the New Law of Income Tax concerning PPh 21,23,and 25.  This discussion are simulate the calculation of Income Tax Law chapter 21 in two version the old and newest Law, also the impact of the Law alteration  to accounts on the financial statement.

The Tax Cuts and Jobs Act of 2017 and the Gig Economy: Why the Employee vs. Contractor Debate Matters More than Ever

2021 ◽  
pp. 088636872110602
Author(s):  
Stanley Veliotis ◽  
Balsam Steve
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Point Of View ◽  
Tax Law ◽  
Court Cases ◽  
Independent Contractors ◽  
Gig Economy ◽  
Jobs Act ◽  
The U.S ◽  
Tax Cuts

The issue of whether workers are independent contractors or employees has become even more relevant with recently enacted and proposed legislation and court cases in many jurisdictions seeking to impose employee status on many Gig economy workforce participants, such as ride-share drivers. This article emphasizes that the U.S. income tax rules, especially after tax reform effective in 2018, makes employee status extremely tax-inefficient for these workers. This article explains the relevant tax law changes and provides various examples of typical settings to confirm that workers with even small relative work expenses are often better off as contractors from a tax point of view.

scholarly journals The Effect of the Tax Cuts and Jobs Act on the Choice between Traditional and Roth IRAs

2020 ◽  
Vol 27 (2) ◽  
pp. 30
Author(s):  
Brian Nichols ◽  
Chioma Nwogu
Keyword(s):  
Income Tax ◽  
Tax Rates ◽  
Rates Of Return ◽  
Tax Rate ◽  
Tax Benefits ◽  
Roth Ira ◽  
Tax Savings ◽  
Jobs Act ◽  
The Impact ◽  
Tax Cuts

This paper analyzes the impact of the tax cuts and jobs act on the income taxeffectiveness of the Roth IRA versus the traditional IRA for investors who maximizetheir contributions prior to retirement. Since the tax cuts and jobs act reduced marginalincome tax rates, the tax benefits gained from a traditional IRA decrease compared toa Roth IRA. Based on set investment parameters, an investor makes monthly paymentsto the IRAs for a specific period and the tax savings obtained from the traditional IRAare reinvested into a separate taxable account. The after-tax accumulation of wealth ineach account is calculated to determine which IRA produces the largest available aftertax withdrawals after retirement. A break-even analysis is also constructed to determinethe marginal income tax rate and investment return that makes an investor indifferentbetween the two IRAs. The results illustrate that the decision to invest in a traditionalIRA versus a Roth IRA depends on both the rates of return and whether the marginalincome tax rate is the same or different during the contribution and withdrawal periods.

scholarly journals Reregulating Indonesian Stock Buyback: A Lesson From United States

Yuridika ◽  
2021 ◽  
Vol 36 (3) ◽  
pp. 559
Author(s):  
Didik Farkhan Alisyahdi ◽  
Diffaryza Zaki Rahman
Keyword(s):  
Economic Development ◽  
Income Tax ◽  
Limited Liability ◽  
Corporate Income Tax ◽  
Share Repurchases ◽  
Share Repurchase ◽  
The Us ◽  
Stock Buyback ◽  
Jobs Act ◽  
Tax Cuts

This article compares the corporate income tax cuts enacted by the Indonesian COVID-19 Relief Law and the US Tax Cuts and Jobs Act. It investigates the correlation between the tax cuts in the Tax Cuts and Jobs Act, economic development, and share repurchases in the US. It seeks to identify appropriate limitations on share repurchases in Indonesia following the enactment of the COVID-19 Relief Law. This research was carried out using the juridical normative method by tracing the literature and laws concerning share repurchase arrangements in Indonesia and the US. The results show that there is a slight positive correlation between the reduction of corporate income tax and economic development in the US and that the US income tax cuts have caused significant growth in share repurchases. After the enactment of the Indonesian COVID-19 Relief Law, which also reduced corporate income taxes, Indonesia may be on the verge of extensive share repurchase activity, as occurred in the US. To tackle this problem, we recommend amending Law No. 40 of 2007 concerning limited liability companies to re-regulate the restriction on share repurchases.

A STUDY OF THE IMPACT OF SPECIAL INTEREST GROUPS ON MAJOR TAX REFORM: AGRICULTURE AND THE 1913 INCOME TAX LAW

2008 ◽  
Vol 35 (2) ◽  
pp. 71-100 ◽  
Author(s):  
Douglas K. Barney ◽  
Tonya K. Flesher
Keyword(s):  
Quantitative Analysis ◽  
Income Tax ◽  
Income Taxes ◽  
Tax Law ◽  
Special Interest Groups ◽  
Congressional Debates ◽  
Farm Population ◽  
Income Tax Law ◽  
State Income ◽  
The Impact

Farmers have benefited from unique tax treatment since the beginning of the income tax law. This paper explores agricultural influences on the passage of the income tax in 1913, using both qualitative and quantitative analysis. The results show that agricultural interests were influential in the development and passage of tax/tariff laws. The percentage of congressmen with agricultural ties explains the strong affection for agriculture. Discussion in congressional debates and in agricultural journals was passionate and patriotic in support of equity for farmers. The quantitative analysis reveals that the percentage farm population was a significant predictor of passage of the 16th Amendment by the states and of adoption of state income taxes in the 20th century.

Transocean and the History of Tax Inversions

2018 ◽  
Vol 34 (1) ◽  
pp. 1-12
Author(s):  
Susan M. Albring ◽  
Randal J. Elder ◽  
Mitchell A. Franklin
Keyword(s):  
Multinational Corporations ◽  
Economic Impacts ◽  
Income Taxes ◽  
Tax Rates ◽  
Corporate Tax ◽  
Corporate Income Taxes ◽  
History Of ◽  
Jobs Act ◽  
The U.S ◽  
Over Time

ABSTRACT The first tax inversion in 1983 was followed by small waves of subsequent inversion activity, including two inversions completed by Transocean. Significant media and political attention focused on transactions made by U.S. multinational corporations that were primarily designed to reduce U.S. corporate income taxes. As a result, the U.S. government took several actions to limit inversion activity. The Tax Cuts and Jobs Act of 2017 (TCJA) significantly lowered U.S. corporate tax rates and one expected impact of TCJA is a reduction of inversion activity. Students use the Transocean inversions to understand the reasons why companies complete a tax inversion and how the U.S. tax code affects inversion activity. Students also learn about the structure of inversion transactions and how they have changed over time as the U.S. government attempted to limit them. Students also assess the tax and economic impacts of inversion transactions to evaluate tax policy.

scholarly journals Is This Tax Reform, or Just Confusion?

2018 ◽  
Vol 32 (4) ◽  
pp. 73-96 ◽  
Author(s):  
Joel Slemrod
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
The Political ◽  
Political Will ◽  
Tax Base ◽  
Tax System ◽  
The Law ◽  
Jobs Act ◽  
Tax Cuts

Based on the experience of recent decades, the United States apparently musters the political will to change its tax system comprehensively about every 30 years, so it seems especially important to get it right when the chance arises. Based on the strong public statements of economists opposing and supporting the Tax Cuts and Jobs Act of 2017, a causal observer might wonder whether this law was tax reform or mere confusion. In this paper, I address that question and, more importantly, offer an assessment of the Tax Cuts and Jobs Act. The law is clearly not “tax reform” as economists usually use that term: that is, it does not seek to broaden the tax base and reduce marginal rates in a roughly revenue-neutral manner. However, the law is not just a muddle. It seeks to address some widely acknowledged issues with corporate taxation, and takes some steps toward broadening the tax base, in part by reducing the incentive to itemize deductions.

scholarly journals TAX LICENCE OF A LEGAL ENTITY – PROS AND CONS

2019 ◽  
Vol 7 ◽  
Author(s):  
Angelika Kútna ◽  
Imrich Antalík ◽  
Norbert Gyurián ◽  
Zoltán Šeben
Keyword(s):  
Agricultural Sector ◽  
Slovak Republic ◽  
Corporate Tax ◽  
Legal Entity ◽  
Main Research ◽  
The Public ◽  
Political Interests ◽  
Pros And Cons ◽  
The Law ◽  
The Impact

In 2013, the Slovak Parliament adopted the Law on Amendments to the Law on Income Tax. One of the most significant changes was the introduction of the Tax License of a Legal Entity. On January 1st, 2018, a minimum corporate tax (the so-called tax license), which was introduced in 2014, was abolished. The main aim of this paper is the evaluation and quantification of the impact which the minimum corporate tax has on the amount of tax liability of a selected group of legal entities in the agricultural sector. The research had tried to find an answer if the tax license abolishment was more in the political interests or if it had some economic background. The main research questions are how has the corporate tax duty increased in the agricultural sector in the Slovak Republic after introducing the minimum corporate tax and how has the tax burden for agricultural holdings increased after introducing the tax license. The analysis presented in this paper confirms that the instrument of introducing the minimum tax is for loss-making sectors, such as the agricultural sector, undoubtedly unfair. On the other hand, the study has confirmed that the public which regularly pays the taxes, agrees with its introduction.

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