scholarly journals Satisfying the Principle of Fairness in Consumption Tax

2015 ◽  
Vol 53 (1) ◽  
pp. 37-50 ◽  
Author(s):  
Marina Đorđević
Keyword(s):  
Developed Countries ◽  
The State ◽  
High Income ◽  
Tax Burden ◽  
Lower Income ◽  
Consumption Tax ◽  
State Budget ◽  
Important Place ◽  
Tax Rate ◽  
Consumption Taxes

Abstract Consumption taxes have an important place in the tax systems of modern states. They provide a large amount of revenue for the state budget. However, they are generous, but they are very regressive. It is a bad characteristic. The regressivity problem of the tax burden implies that the consumption tax is burdensome for the population with lower income. They pay similar tax rate as people with high income. The aim of this paper is to point to the existence of the problem of regressivity in underdeveloped and developed countries. This paper analyses the possibilities of reducing this problem in order to satisfy the principle of fairness in taxation.

scholarly journals The Tax Burden CGE Analysis for Slovakia and Slovenia

2019 ◽  
Vol 65 (4) ◽  
pp. 35-46
Author(s):  
Veronika Mitkova ◽  
Miroslava Jánošová
Keyword(s):  
Computable General Equilibrium ◽  
Allocative Efficiency ◽  
Computable General Equilibrium Model ◽  
Tax Burden ◽  
Consumption Tax ◽  
Tax Rate ◽  
Export Subsidies ◽  
Efficiency Effects ◽  
Consumption Taxes ◽  
Direct Tax

AbstractIn the paper, the static computable general equilibrium model for Slovakia and Slovenia is used for a tax burden analysis. There was considered simultaneous 1% increase in taxes on primary factors, on firms’ and government domestic and imported purchases, on import taxes, on output (or income) tax, on private domestic and imported consumption taxes and export subsidies. The direct tax burden as well as the allocative efficiency effects of a tax, the welfare effects and welfare decomposition of such change for both countries is analysed. The most sensitive sectors on tax rate changes is heavy manufacturing and processed food and the most distorting effect has the tax increase on private consumption tax. The government’s tax increase should generate return at least 105.75% of its costs in Slovakia and 101.92% in Slovenia, otherwise the welfare will decline.

scholarly journals The Tax Burden and Economic Growth in Morocco: Empirical Analysis

2020 ◽  
Vol 7 (1) ◽  
pp. p1
Author(s):  
Mohamed Karim ◽  
Mohamed Bouzahzah ◽  
Othmane Erguigue
Keyword(s):  
Economic Growth ◽  
Social Insurance ◽  
Social Role ◽  
Economic Indicator ◽  
The State ◽  
Tax Burden ◽  
Main Role ◽  
Important Place ◽  
Tax Rate ◽  
Optimal Tax

The tax burden in Morocco has an important place, both in the political arena and in the media. These debates are often based on the identification of the tax burden in the economy. Moreover, taxation plays a key role in achieving the objectives of the State’s social and economic policy. Because its main role is to collect resources to supply the state budget to meet multiple obligations, taxes have an economic role (correcting market inefficiencies in resource allocation) and a social role (reducing inequalities through income redistribution, social equity...). The paper uses to identify the Laffer growth curve and determine the optimal tax rate maximizing economic growth for the Moroccan economy we used econometric techniques. This empirical study covered the period from 1990 to 2018. However, a high tax rate can influence the macroeconomic performance of the state as in the case of Morocco, since Morocco ranks among the developing countries with a high tax burden, the latter defines the relative importance of taxes and duties (or compulsory levies, such as social insurance contributions on wages) in the national economy based on the tax rate which is considered the most relevant economic indicator. The challenge is to find an optimal tax rate that stimulates economic growth while at the same time achieving fairness and equity in our tax system.

scholarly journals The Impact of Federal and State Income Taxes on Timber Income in the Northeast and Midwest Following the 1986 Tax Reform Act

1996 ◽  
Vol 13 (1) ◽  
pp. 8-15 ◽  
Author(s):  
William C. Siegel ◽  
Harry L. Haney ◽  
Daniel M. Peters ◽  
Pete Bettinger ◽  
Debra S. Callihan
Keyword(s):  
New Hampshire ◽  
Income Tax ◽  
Income Level ◽  
Income Taxes ◽  
The State ◽  
High Income ◽  
Tax Rate ◽  
Income Levels ◽  
State Income Tax ◽  
State Income

Abstract The structure and provisions of state income taxes are detailed for timber owners in 19 states of the Northeast and Midwest. Using 1994 federal and state income tax rules, the tax liability for a hypothetical married couple with timber sale income was calculated for two federal income tax rate brackets (medium and high income levels) for states in the Northeast and Midwest that impose an income tax. At the medium income level, the state portion of the total income tax liability ranged from 12.7% in Pennsylvania to 25.6% in Delaware. At the high income level, the state portion ranged from 11.1% in Pennsylvania to 24.9% in Minnesota. For both income levels, New Hampshire had the lowest state portion of the total tax liability when considering their business profits tax (12% for the medium and 7% for the high income level). The provision most significantly affecting state income tax liability was the tax rate schedule. Installment sales provide an alternative tax planning strategy for those timber owners who qualify as investors rather than a business and who are in the lowest federal tax bracket. Several states also impose taxes other than an income tax when timber is harvested. For example, Minnesota and New Hampshire both impose a minimum 10% yield tax on the timber's stumpage value. These levies significantly affect the total tax liability on harvest income. North. J. Appl. For. 13(1):8-15.

scholarly journals Tax Policy and Income Inequality in the Visegrad Countries

2015 ◽  
Vol 61 (6) ◽  
pp. 12-18
Author(s):  
Anna Moździerz
Keyword(s):  
Income Inequality ◽  
Tax Policy ◽  
Negative Impact ◽  
The State ◽  
Consumption Tax ◽  
Tax Reforms ◽  
Tax Rate ◽  
Recent Financial Crisis ◽  
The Impact ◽  
Visegrád Countries

Abstract The financialisation of economies is believed to be the primary cause of the increase in income inequality in the world, occurring on a scale unseen for more than 30 years. One can hypothesise that it is the state that is responsible for the widening inequality, as the state has not sufficiently used the redistributive function of taxation. The purpose of this paper is to study the impact of tax policy on income inequality in Poland, the Czech Republic, Slovakia and Hungary. These so-called Visegrad countries have, in the last several years, carried out some controversial experiments with tax policy, specifically in terms of the flattening of tax progressivity or its replacement with a flat tax, which led to the weakening of the income adjustment mechanism. The imbalance between income tax and consumption tax has contributed to perpetuating income inequality. The verification of tax systems carried out during the recent financial crisis has forced the countries included in this research to implement tax reforms. The introduced changes caused various fiscal and redistributive effects. Analyses show that the changes in income taxation and an increase in the consumption tax rate had the most negative impact on the income and asset situation in Hungary.

THE COMPARISON OF CORPORATE INCOME TAX IN LATVIA AND LITHUANIA

2017 ◽  
pp. 20
Author(s):  
Jūlija Ščeglova ◽  
Iveta Mietule
Keyword(s):  
Income Tax ◽  
The State ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
State Budget ◽  
Tax Base ◽  
Tax Rate ◽  
Common Features ◽  
Advance Payment ◽  
Tax Payers

Corporate income tax is one of the important taxes that provide revenues to the state budget. Article contains a comparison between Latvian and Lithuanian existing legislation relating to corporate income tax, studied differences between the tax rates, tax base, tax period and taxpayers. Were described differences that are related to the advance payment calculation, as well as created an example that shows how advance payments are calculated in Latvian and Lithuanian companies. As a result, it was found that there are several common features in the Latvian and Lithuanian legislation, with regard to corporate income tax, for example, the tax payers, taxation period, tax rate, the taxable amount. But there are several differences, such as the nuances of rates for non-residents, depending on the type of revenue, advance payment deadlines and other particularities of the calculation of the advance payments. Also differ corporate income tax payment deadlines. It was concluded that making advance payments in Lithuanian enterprises is more profitable, because it was calculated that at the same conditions, the amount of advances in Lithuania is lower than in Latvia.

scholarly journals The State Financing of the Sociocultural Sphere in the Economies of Russia and China: A Comparative Analysis

2020 ◽  
pp. 264-279
Author(s):  
Natalia Ya. Krivonosova ◽  
Keyword(s):  
Social Protection ◽  
Developed Countries ◽  
The State ◽  
State Funding ◽  
State Budget ◽  
Global Trends ◽  
Republic Of China ◽  
Catching Up ◽  
State Financing ◽  
Financing Education

The article analyzes the indicators of the budgetary financing of the sociocultural sphere in 2008–2017 based on the official statistical reports by Russian and Chinese authorities. Within the framework of structural analysis of budget expenditures in both countries, the priority of these areas for the expanded budget of the Russian Federation has been identified, whereas the sociocultural block is given only a small share in the structure of the state budget expenditures of the People’s Republic of China. The analysis of the dynamics of the budgetary spending on social and cultural events during the studied period showed a significant increase in such spending in China, with a slowdown in growth in Russia. Special attention was paid to the analysis of expenditures on the sociocultural block in the GDP volume. It was found that the Russian spending on sociocultural events in the GDP volume was gradually approaching the numbers in developed countries. This corresponds to the global trends in the leading countries characterized by increased expenditures on social protection due to the influence of factors such as the aging of the population, declining birth rates, and increasing unemployment. It is emphasized that China’s spending on sociocultural events in the GDP volume is significantly inferior to the indicators of the world’s leading economies and is aimed more at financing education, which is justified by the conditions of the “catching-up” stage. The author concludes that modern threats and challenges determine the need to adjust priorities and volumes of the state funding of sociocultural activities in China and Russia.

scholarly journals Political tax cycles: Cyclicality of the tax burden in election periods

2021 ◽  
Vol 7 (2) ◽  
pp. 193-205
Author(s):  
K. V. Rudy ◽  
◽  
Keyword(s):  
Low Income ◽  
Political Development ◽  
Developed Countries ◽  
High Income ◽  
Political Regime ◽  
Annual Data ◽  
Tax Burden ◽  
Political Systems ◽  
Factor Regression ◽  
Similar Dynamic

The article discusses changes in the tax burden in election and post-election years in countries with different levels of economic and political development. The study uses the data on 121 countries for the period between 1991 and 2019 to test two hypotheses: 1) in election years, governments tend to boost spending while in post-election years government expenditures decline, which determines a similar dynamic of the tax burden; 2) in election years the tax burden decreases and in post-election years it either increases or decreases at a slower rate than in election periods. Methodologically, the study relies on multi-factor regression analysis of panel data. As a result, the first hypothesis is confirmed for high-income countries where the governments increase their spending to ensure the incumbent’s re-election and cut their expenditures after the election. In developed countries, in election years, the government’s spending was 0.4% higher than in other periods. In developed countries, governments were motivated to raise rather than reduce the tax burden in order to compensate for their increased expenditures. No common pattern of declining tax burden in election periods was detected for all observed countries, for groups of countries by income level (high-income, middle- or low-income) or for groups of countries by political regime type (democratic and non-democratic– hybrid or authoritarian). However, the analysis of the annual data on taxes has shown that the decline in the tax burden can occur in countries with developing economic and political systems as was the case with Armenia, Russia and Ukraine in 1992–2019. In general, the findings demonstrate that the governments are more prone to using monetary and fiscal rather than tax instruments in election periods.

TAX BURDEN: PRINCIPLES AND EFFECTIVE WAYS OF OPTIMIZATION

2021 ◽  
Vol 2 (2) ◽  
pp. 136-142
Author(s):  
N. A. NAZAROVA ◽  
Keyword(s):  
Social Development ◽  
State Policy ◽  
The State ◽  
Significant Part ◽  
Tax Burden ◽  
Legal Basis ◽  
State Budget ◽  
Tax System ◽  
Economic Entity ◽  
Direction Of Movement

The article examines the assessment and existing methods of the tax burden, directions of its optimiza-tion. One of the main systemic elements of the country's state policy is the tax system as one of the vectors in the direction of economic and social development. The legal basis of the state determines that an economic entity becomes a taxpayer, paying taxes and fees to the state budget system. For effective conduct of activi-ties, organizations need to assess the amount of taxes paid to the budget and determine how much of their own resources they can donate to the state as payment for using its services. For this, it is advisable to use the estimated indicator "tax burden". In addition to organizations, the tax burden is also calculated by the tax authorities to control the activities of taxpayers. It is important for the state to monitor both the direction of movement of tax flows and the fact of their receipt into the country's budget, taking into account the financial and economic capabilities of taxpayers, since tax revenues form a significant part of the federal and consoli-dated budget revenues.

Optimizing the Impact of Taxation on the Level of Profitability and Solvency of the Organization

2018 ◽  
Vol 5 (6) ◽  
pp. 28-32
Author(s):  
М. Гаджиев ◽  
M. Gadzhiev ◽  
Д, Сеферова ◽  
D, Seferova
Keyword(s):  
Fiscal Policy ◽  
Entire Range ◽  
The State ◽  
Tax Burden ◽  
System Of Equations ◽  
Business Activity ◽  
Direct Factor ◽  
Tax Rate ◽  
Economic Relations ◽  
The Impact

The change in the level of solvency and business activity of a taxpayer is a direct factor in reducing the ability of an organization to meet tax obligations. The result of the study of the interrelationship of these indicators is formalized in the form of a system of equations, the consolidated formula of which can be represented as a model for determining the parameters of the tax burden and the paying capacity of the payer under the impact of a change in the aggregate tax rate from its income. In this methodology, by taking an element-by-element account of all the factors of this interaction, the entire range of economic relations that arise between the state and the taxpayer in the process of distributing the taxpayer’s income in the context of the changing fiscal policy of the state is presented, and a number of available approaches to measuring the tax burden and the tax burden are compared.

scholarly journals Land taxation

2019 ◽  
Vol 13 (1) ◽  
pp. 883-888
Author(s):  
Anca Marina Izvoranu ◽  
Henriette Cristiana Călin
Keyword(s):  
Agricultural Land ◽  
Developed Countries ◽  
The State ◽  
Information Resources ◽  
Land Resource ◽  
Agricultural Machinery ◽  
State Budget ◽  
Future Directions ◽  
Land Taxation ◽  
The Developed Countries

Abstract The process of producing agricultural goods involves natural resources, cataloged as inputs. Neutral, the most important is the land, as the primary resource among seeds, land, agricultural machinery, fuel. The present paper will analyze how the land resource is taxed, the needs and opportunities of taxation, and what are the shortcomings of this niche. The study does not aim to deal exhaustively with the legislation related issues in this sector, but has in particular sought to identify future directions of development in terms of the ability of agricultural actors to cope with the commitments they have since they are owner of agricultural land. At the same time, the information resources landowners would need to help understand and overcome the tax obstacles that they live when they want to grow through acquisitions or expansions, will be considered. Taxes, as part of fiscal policy, part of the economic policy, are established instruments, considering the level of development and the state national economy. That’s why they differ from one country to another, relative to their level of development. In low-developed countries, a smaller redistribution of the Gross Domestic Product of Taxes is observed, through the state budget, to the situation of the developed countries.

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