scholarly journals Changes in European tax systems during economic downturn

2010 ◽  
Vol 1 (1) ◽  
pp. 7-23
Author(s):  
Janusz Kudła
Keyword(s):  
Tax Competition ◽  
New Economic Geography ◽  
Economic Downturn ◽  
Tax Rates ◽  
Tax Structure ◽  
Homogeneous Groups ◽  
Tax Revenues ◽  
Structure Changes ◽  
Tax Systems ◽  
Main Basis

The article includes an analysis of relative changes in tax structure during the period between 2007-2008, based on data of tax revenues from 27 countries of EU and short requests for discretionary tax rates changes occurring in 2009-2010. For the quantitative analysis we used k-mean cluster analysis procedure identifying relatively homogeneous groups of European states based on selected tax structure features. Thus the basic patterns of tax systems had been distinguished for the period before the economic downturn (by convention in 2006) and then we were looking for trends in tax systems’ structure. Changes in taxation, both in terms of tax burden, as well as changes in tax rates are mainly concentrated in the European peripheries, which are accompanied by heterogeneous changes in production. This arrangement supports theories of tax competition stemming from the new economic geography. Member countries of EU experiencing deep economic downturn alter their tax structure, rather by the types of tax than by economic functions of taxes. Countries are trying to raise the taxes which were previously the main basis of their tax revenues or raise those which revenues decrease the most.

scholarly journals Valstybių konkurencijos mokesčiais apraiškų teisiniai aspektai

Teisė ◽  
2009 ◽  
Vol 72 ◽  
pp. 141-159
Author(s):  
M Indaugas Lukas
Keyword(s):  
Tax Competition ◽  
Legal Analysis ◽  
Tax Revenues ◽  
International Tax Competition ◽  
Tax Systems ◽  
International Tax ◽  
National Tax ◽  
Harmful Effects

Straipsnyje analizuojama tarpvalstybinė konkurencija tiesioginiais mokesčiais, tipinės jos formos ir vals­tybių taikomi būdai riboti neigiamus konkurencijos mokesčiais padarinius nacionalinėms mokestinėms pajamoms, siekiant atskleisti, jog konkurencijos mokesčiais fenomenas, nepaisant itin aiškaus politi­zuotumo, gali ir turi būti ir teisės mokslo interesų sritis. Suvokiant, kad išsami teisinė šio itin sudėtingo ir daugialypio reiškinio ar jį identifikuojančių elementų analizė tokios apimties darbe neįmanoma, čia bandoma iš teisinių perspektyvų įvertinti aktualiausius ir reikšmingiausius nacionalinėms mokesčių sis­temoms tiesiogiai darančius įtaką valstybių konkurencijai mokesčiais aspektus, bandant prisidėti prie kryptingos tolesnės teisinės diskusijos. In this article phenomenon of international tax competition, typical its forms and measures to counter its harmful effects on national tax revenues are analyzed, trying to reveal, that, despite deep political nature, international tax competition might and should be in the scope of interests of tax lawyers. Real­izing, that in such article it is not possible to provide comprehensive legal analysis, author seeks in legal light to introduce relevant and most important aspects of tax competition phenomenon that directly influences national tax systems, trying to encourage further legal discussion.

scholarly journals PROBABILITY MODEL OF POVERTY CALCULATION SUBJECT TO DIFFERENT FORMS OF INCOME TAXATION

2020 ◽  
Vol 2020 (4) ◽  
pp. 101-111
Author(s):  
Andrej Vyacheslavovich Mikheev
Keyword(s):  
Income Tax ◽  
Probability Model ◽  
Single Stage ◽  
Income Taxation ◽  
Tax Rates ◽  
Total Income ◽  
Tax Rate ◽  
Low Incomes ◽  
The Russian Federation ◽  
Tax Systems

The article highlights a probabilistic model constructed for calculating the number of poor and the total income tax levied on all taxpayers under different income tax systems. There is considered the proportional income tax system adopted in the Russian Federation, as well as single-stage systems with both fixed and variable tax rates, in which individuals with low incomes are exempted from income tax. For these tax systems there have been found the dependences of the expected value of the number of the poor and the total income tax on the tax rate, tax-free minimum, and also on the laws of probabilities distribution of total income and the living wage of an individual. A numerical simulation of the found dependences was carried out. The conditions under which the abolition of income tax for individuals with low incomes reduces the number of poor were determined. Mathematical criteria are formulated with the help of which it is possible to assess the feasibility of moving from a proportional system to single-stage income tax systems.

scholarly journals Dynamic tax competition between symmetric countries with multiple strategic investors

2021 ◽  
Author(s):  
Kaushal Kishore
Keyword(s):  
Tax Competition ◽  
Initial Period ◽  
Strategic Interaction ◽  
Tax Rates ◽  
Mixed Strategies ◽  
Full Characterization ◽  
Tax Holidays

Abstract Two symmetric countries compete over two-period under a non-preferential taxation regime to attract multiple investors where investors are strategic and investments are sunk once invested. Contrary to the existing results, we find that tax holidays do not arise during the initial period. Equilibria in mixed strategies arise in both periods where competing countries set strictly positive tax rates during the initial period. Strategic interaction between large investors reduces competition and increases tax rates during the initial period. We provide full characterization and uniqueness of equilibria in mixed strategies.JEL classification: F21, H21, H25, H87

Structural breaks in the central government taxes in India, 1950-1951 to 2013-2014

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anita Rath
Keyword(s):  
Structural Breaks ◽  
Central Government ◽  
Empirical Literature ◽  
Tax Revenue ◽  
Tax Rates ◽  
Tax Structure ◽  
Relative Significance ◽  
Content Type ◽  
Simulation Exercise ◽  
Tax Regimes

Purpose The purpose of this paper is to find out the factors contributing to major shifts in the growth of tax revenue through the estimation of structural breaks and analysis of major tax regimes. Recent contributions to optimal tax theory and empirical literature on the Laffer curve effect, based on elasticity of taxable income, challenge the settled understanding on the rate-revenue relationship. In this backdrop, the objective of the paper is to find out the relative significance of changes in tax rate, tax base and administrative reforms in affecting the growth of tax revenue in India. The paper considers tax data spanning a period of six and half decades for five major components of direct and indirect taxes (corporation, personal income, customs, excise and service) of the central government of India. Design/methodology/approach Unknown break point(s) – single and multiple – in the tax structure are identified by using the Quandt-Andrews and Bai-Perron econometric tests. These tests were conducted for two models of growth of taxes (tax revenue and tax-NDP ratio) estimated using semi-log functions. A simulation exercise was conducted to find out the robustness of the results by varying the trimming parameter and number of breaks. An analytical framework is used to understand the factors associated with these breaks. Findings There is more than one break identified for every tax component as per the results of Bai–Perron test. The simulation exercise suggests that estimated breakpoints are mostly robust. Economic growth, structural changes in the economy, simplification and rationalization of tax structure, tax competition, policies such as liberalization have contributed to the changing tax regimes. Results of this study suggest that high tax rates have not been, in particular, detrimental to achieving growth in revenue and factors other than changes in tax rates have been more prominent in bringing about the shifts. Originality/value This is, perhaps, the first paper exploring the multiple structural breaks in the fiscal variables in India. It offers an understanding of the changing regimes of central government taxes and the underlying factors for the same.

scholarly journals The relationship between tax rates and tax revenues in eurozone member countries ‐ exploring the Laffer curve

2019 ◽  
Vol 72 (2) ◽  
pp. 121-145
Author(s):  
Alexandra Ferreira‐Lopes ◽  
Luís Filipe Martins ◽  
Ruben Espanhol
Keyword(s):  
Tax Rates ◽  
Laffer Curve ◽  
Tax Revenues ◽  
The Relationship

scholarly journals Wirkung einer Feiertagsbereinigung des Länderfinanzausgleichs – eine empirische Analyse des deutschen Finanzausgleichs

2009 ◽  
Vol 58 (2) ◽  
Author(s):  
Michael Broer
Keyword(s):  
Tax Revenue ◽  
Tax Rates ◽  
Fiscal Equalization ◽  
Ability To Pay ◽  
Tax Revenues ◽  
Empirische Analyse ◽  
Per Capita ◽  
The Difference ◽  
The Right ◽  
Fiscal Equalization System

AbstractIn the German system of fiscal equalization Länder (States) with tax revenue below the average get payments from the Lander above the average. The difference between the average and the own tax revenue per capita will be compensated up to 75 %. To prevent Länder from getting payments form other Länder by lowering their own tax rates and to get the right information about their ability to pay, the revenue of taxes with taxing autonomy is standardized. But Länder could also influence their tax revenues by the number of holidays, each Land decides on its own. A Land with many own holidays will get lower tax revenues and higher payments in the fiscal equalization system than the same Land with no extra holidays. To collect the real ability to pay of the Lander in the fiscal equalization system, it is necessary to eliminate the effect of the different number of holidays. This paper shows an approach to neutralize this effect and calculates its impact to the payments of each Land in the fiscal equalization system.

scholarly journals TAX STRUCTURE AND ECONOMIC GROWTH: DO DIFFERENCES IN INCOME LEVEL AND GOVERNMENT EFFECTIVENESS MATTER?

2018 ◽  
Vol 65 (01) ◽  
pp. 217-237 ◽  
Author(s):  
HALIT YANIKKAYA ◽  
TANER TURAN
Keyword(s):  
Low Income ◽  
Low Income Countries ◽  
Estimation Methods ◽  
Property Taxes ◽  
Tax Rates ◽  
Tax Structure ◽  
Tax Rate ◽  
Using Data ◽  
Positive Effect ◽  
Effect On Growth

We examine the effects of both overall tax rate and changes in tax structure on growth by using data for more than 100 high, middle, and low income countries by employing the GMM estimation methods. In general, our results do not support the argument that overall tax rates or changes in tax structure have a significant effect on growth. However, we find that a shift from income to consumption and property taxes leads to a positive and significant effect on growth rate while a shift from consumption and property taxes to income taxes has a positive effect for low-income countries.

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