scholarly journals Effects of Tax Reform on Labor Supply, Investment, and Saving

1992 ◽  
Vol 6 (1) ◽  
pp. 3-25 ◽  
Author(s):  
Barry Bosworth ◽  
Gary Burtless
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Tax Policy ◽  
Tax Reform ◽  
Capital Formation ◽  
Living Standards ◽  
Tax System ◽  
The U.S ◽  
Tax Cuts

The U.S. tax system received two major overhauls during the 1980s: the tax cuts of 1981 and the Tax Reform Act of 1986. Supporters of both reforms argued that major changes in tax policy could boost saving, investment, labor supply, and entrepreneurship. Eventually, it was argued, such changes could reverse the slowdown in economic growth that began in the early 1970s and spur improvements in American living standards. The aim of this paper is to assess whether the goals of increased labor supply and capital formation were achieved.

Making Tax Havens Work: The Necessity of Tax Professionalism

2018 ◽  
Vol 18 (1) ◽  
pp. 53-80
Author(s):  
Martin T. Stuebs ◽  
Helen (Janie) Whiteaker-Poe
Keyword(s):  
Tax Policy ◽  
Tax Reform ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Havens ◽  
Earned Income ◽  
Tax Professionals ◽  
Jobs Act ◽  
Influence Behavior ◽  
The U.S

ABSTRACT The Tax Cuts and Jobs Act of 2017 overhauled the U.S. corporate tax system, lowering the statutory rate, exempting foreign earned income, and strengthening anti-abuse provisions. However, opportunities and incentives for abuse remain. Therefore, while developing tax policy is helpful, this paper posits that developing tax professionalism—not only tax policy—is needed. Efforts to reform tax policy should be balanced with efforts to develop and guard tax professionalism. Implementing tax policies in a flourishing tax system requires flourishing tax professionals. We develop theoretical and moral analyses to assess tax policy and tax professionalism approaches to tax reform. By targeting processes in the tax system, the tax policy approach attempts to influence practitioner behavior by restricting opportunities and incentives for corporate tax aggression. The tax professionalism approach recognizes that beneath efforts to influence behavior is a deeper, fundamental challenge to develop and protect tax professionals as reflexive agents capable of responsibly handling tax system opportunities and incentives. The tax professionalism approach focuses on persons in the tax system—not processes. This paper draws attention to the limitations of the tax policy approach and to the complementary need for the tax professionalism approach and proposes practical approaches to developing tax professionalism.

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.

Preferences, Tax Structure and Tax Reform: Theory and Evidence

1975 ◽  
Vol 3 (1) ◽  
pp. 56-69 ◽  
Author(s):  
Shlomo Maital
Keyword(s):  
Tax Reform ◽  
Tax Structure ◽  
Indirect Taxation ◽  
Tax System ◽  
The Past ◽  
Pure Public Good ◽  
Indirect Taxes ◽  
Current Shift ◽  
Optimal Tax Structure ◽  
The U.S

When the structure of tax revenues–the proportion of revenues earned by income, consumption and wealth taxes–is treated as a pure public good, a useful framework emerges for analyzing interrelationships among taxpayers' preferences, tax structure and tax reform. The “optimal” tax structure is defined and used to outline several conjectures about the current shift from direct to indirect taxation, evident particularly in Europe. Attention is then focused on the U.S. tax system. The structure of the tax system is shown to have changed very little in the past two decades. In contrast, interview surveys carried out over the past thirty years indicated a long-standing shift in taxpayers' preferences toward indirect taxes. Implications are drawn regarding tax reform.

scholarly journals The Structure of the Tax System Versus the Level of Taxation: An Evaluation of the 1986 Act

1992 ◽  
Vol 6 (1) ◽  
pp. 59-68 ◽  
Author(s):  
J. Gregory Ballentine
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Tax Reform ◽  
High Income ◽  
Tax Structure ◽  
Corporate Tax ◽  
Policy Goal ◽  
Tax System ◽  
System Versus ◽  
The Future

In this paper, I assess the 1986 Tax Reform Act relative to the tax system that might have evolved over the several years following 1986 had that particular tax reform not been enacted. Had tax reform not been enacted, I believe that the pattern of steady tax increases, particularly corporate tax increases and tax increases on high-income individuals such as occurred in the 1982 and 1984 tax acts would have continued. I also believe that the 1986 Tax Reform Act introduced an income tax system that will be quite stable; broad changes, in particular changes that raise a large amount of income tax revenues, are unlikely for many years. So I am comparing the tax structure of the 1986 Tax Reform Act to a system that, in part, has an inferior structure, but that provides more revenues. Since I believe that the most important tax policy goal in 1986 and later should have been to raise revenues, not to revise the structure of the tax system, I believe that the 1986 Tax Reform Act was harmful. Tax reform not only did not raise revenues, it has made it more difficult to raise revenues in the future, without providing significant offsetting benefits.

scholarly journals Tax Mix, Tax Reform and Economic Growth in Morocco: A Quantitative Analysis

2020 ◽  
Vol 6 (1) ◽  
pp. p44
Author(s):  
Mohamed Karim ◽  
Mohamed Bouzahzah ◽  
Ahmed Touzani
Keyword(s):  
Economic Growth ◽  
Quantitative Analysis ◽  
Social Policy ◽  
Tax Reform ◽  
Economic Situation ◽  
Tax System ◽  
Ability To Pay ◽  
Public Finances ◽  
Policy Debates ◽  
Current Economic Situation

The current economic situation and its effects on the situation of public finances thus place the tax system, even more than before, at the heart of economic and social policy debates. This debate can only be fruitful and lead to relevant recommendations on the basis of a global diagnosis of this system, both in terms of its structure and legislative construction, as well as in terms of its day-to-day practice and management by the administration and taxpayers, and its perception by all parties concerned. The aim is to establish a fairer tax system in which each taxpayer pays his taxes according to his ability to pay and an effective tax system to promote economic growth.

The Size of Government, Capital Accumulation, and the Tax Base

1983 ◽  
Vol 11 (3) ◽  
pp. 321-345 ◽  
Author(s):  
David C. L. Nellor
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Capital Accumulation ◽  
Tax Reform ◽  
Consumption Tax ◽  
Size Of Government ◽  
Tax Base ◽  
Tax System ◽  
Policy Concern

A central tax policy concern is the role of particular tax bases in either stimulating or discouraging capital accumulation. While the consumption tax has been proposed as superior to the income tax in terms of its treatment of saving, the literature has shown that whether a consumption or income-based tax system is associated with greater capital accumulation is theoretically indeterminate. This article incorporates the role of public accumulation and changing government activities into its analysis of capital accumulation, which enables this ambiguity to be resolved. An examination of U.S. data for the 1929–1978 period suggests that had inflation adjustment of the income tax been adopted it would, contrary to the implication of several tax reform proposals, have resulted in greater accumulation than the implementation of a consumption tax.

scholarly journals Rethinking the Indirect Taxation of Trust in the Reform of the Italian Tax System

2021 ◽  
Vol 26 (4) ◽  
pp. 73-93
Author(s):  
Salvatore Antonello Parente
Keyword(s):  
Economic Growth ◽  
Tax Reform ◽  
Economic Recovery ◽  
Tax Structure ◽  
Indirect Taxation ◽  
Tax System ◽  
Strategic Position

Abstract In Italy, among the priorities of the National Recovery and Resilience Plan (PNRR), a strategic position is taken by the tax reform, which is part of the actions to remedy the structural weaknesses of the country’s system and to stimulate economic recovery aft er the Covid-19 crisis. In this context, in order to design a new tax structure, in terms of economic growth and competitiveness, a legislative rethink of indirect taxation of trusts and other destination constraints is desirable. In fact, the current tax rules of these negotiation models, in addition to giving rise to numerous disputes, oft en discourage their use in regulating new interests and needs.

Sign in / Sign up

Export Citation Format

Share Document