scholarly journals The Taxation of Industrial Foundations in Sweden (1862–2018)

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Dan Johansson ◽  
Mikael Stenkula ◽  
Niklas Wykman
Keyword(s):  
Economic Growth ◽  
Capital Gains ◽  
Capital Income ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate

AbstractIt has been argued that the Swedish tax system has favored firm control through industrial foundations, which should have inhibited entrepreneurship and economic growth. However, research has been hampered because of a lack of systematic historical tax data. The purpose of this study is to describe the evolution of tax rules for industrial foundations in Sweden between 1862 and 2018 and to calculate the marginal effective tax rate (METR) on capital income. The results show that the METR for an equity-financed investment is typically below 20% and occasionally peaks at approximately 40%. When the requirement that industrial foundations have to donate the bulk of capital income (less capital gains) for charitable purposes is treated as a tax, the METR is seldom below 50% when financing investments with new share issues and often exceeds 100%.

Does the Federal Income Tax Law Favor Entrepreneurs?

2020 ◽  
Vol 73 (4) ◽  
pp. 1219-1232
Author(s):  
Eric Toder
Keyword(s):  
Economic Growth ◽  
Growth Phase ◽  
Income Tax ◽  
Tax Law ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate ◽  
New Business ◽  
Federal Income Tax ◽  
Income Tax Law

This paper estimates the effective tax rate on entrepreneurial income, defined as the return to an individual who starts a successful new business and then sells their interest once it becomes an established enterprise. The rate depends on both the tax imposed on the appreciation of the firm’s value during its growth phase and on the effects of the tax system on the value of equity in ongoing business enterprises. Under reasonable assumptions, this rate is lower than the rate the entrepreneur would pay on ordinary income. Preferential taxation of entrepreneurial income has consequences for both economic growth and income distribution.

scholarly journals Victory Tax: A Holistic Income Tax System

Entropy ◽  
2021 ◽  
Vol 23 (11) ◽  
pp. 1492
Author(s):  
Donald J. Jacobs
Keyword(s):  
Income Tax ◽  
Free Market ◽  
Poverty Line ◽  
The United States ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate ◽  
Single Tax ◽  
Government Transfer ◽  
Log Normal

How can an income tax system be designed to exploit human nature and a free market to create a poverty free society, while balancing budgets without disproportional tax burdens? Such a tax system, with universal character, is deduced from the following guiding principles: (1) a single tax rate applies to all income types and levels; (2) the tax rate adjusts to satisfy budget projections; (3) government transfer only supplements the income of households with self-generated income below the poverty line; (4) deductions for basic living expenses, itemized investments and capital losses are allowed; (5) deductions cannot be applied to government transfer. A general framework emerges with three parameters that determine a minimum allowed tax deduction, a maximum allowed itemized deduction, and a maximum deduction defined by income percentage. An income distribution that mimics the United States, and a series of log-normal distributions are considered to quantitatively compare detailed characteristics of this tax system to progressive and flat tax systems. To minimize government dependency while maximizing after-tax income, the effective tax rate (ETR) as a function of income percentile takes the shape of the letter, V, inspiring the name victory tax, where the middle class has the lowest ETR.

scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

scholarly journals CONCEPTUAL BASIS OF TAX POLICY FORMATION IN THE GLOBALIZATION CONDITIONS

2020 ◽  
Vol 6 (2) ◽  
pp. 81-92 ◽  
Author(s):  
Svetlana Khalatur ◽  
Olena Trokhymets ◽  
Oleksandr Karamushka
Keyword(s):  
Tax Policy ◽  
Direct Investment ◽  
Capital Gains ◽  
Tax Revenue ◽  
The European Union ◽  
Tax System ◽  
Tax Rate ◽  
Capital Gains Taxes ◽  
The Impact ◽  
The Eu

The purpose of the article is to analyze the tax systems of the countries of the European Union and Ukraine, the impact of individual indicators of the tax system on the economies development, study the possibility of applying the accumulated experience. The subject-matter of the study is the methodological and conceptual foundations of the tax policy-making process of the EU and Ukraine. Methodology. Based on the analyzed scientific literature on tax policy formulation of countries, the methodological principles of this study provide for the joint application of a set of well-known general scientific and special methods of research in economics. In particular, the dialectical method, the method of scientific abstraction, the method of systematic analysis, economic and mathematical modeling were used. Results. The article analyzes the individual indicators of the tax system functioning of 28 countries of the European Union and Ukraine; and the impact of these indicators on the economy development. In particular, the following indicators were studied: customs and other import duties, firms expected to give gifts in meetings with tax officials; firms that do not report all sales for tax purposes; firms visited or required meetings with tax officials; labor tax and contributions; net taxes on products; other taxes; other taxes payable by businesses; profit tax; tax payments; tax revenue; taxes on exports; taxes on goods and services; taxes on income, profits and capital gains; taxes on income, profits and capital gains; taxes on international trade; time to prepare and pay taxes; total tax rate. The dependence of foreign direct investment on profit tax, tax revenue; taxes on income, profits and capital gains; time to prepare and pay taxes and total tax rate have been studied. The study shows that, on average, tax revenue affects foreign direct investment, net inflows with the same strength as time to prepare and pay taxes, but almost twice as much as taxes on income, profits and capital gains. Practical implications. The article contains a set of tools and rules for reviewing approaches, guidelines and criteria for the effectiveness of Ukraine's tax policy in line with the global development concept. Value / originality. The conceptual criteria for the formation and implementation of the tax policy of the state are determined, it is carried out the comparative analysis of the tax policy of Ukraine and the EU countries within the framework of the European economic integration, which occurs simultaneously with the globalization of the world economy.

A New Examination of an Old Question: Is it Constitutional to Tax Marriage?

2020 ◽  
Vol 18 (1) ◽  
pp. 19-41 ◽  
Author(s):  
Amy Yurko ◽  
Christine Cheng ◽  
Marc Morris
Keyword(s):  
First Amendment ◽  
Due Process ◽  
Married Couples ◽  
Equal Protection ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate ◽  
Marriage Tax ◽  
The U.S ◽  
Jel Classifications

ABSTRACT In 2015, the U.S. Supreme Court recognized the fundamental right to marry in Obergefell v. Hodges. At the same time, the tax code commonly taxes married couples at a higher effective tax rate than their unmarried counterparts. We examine the constitutionality of the penalty on marriage, critically reviewing the justification for the penalty accepted in Johnson v. U.S. in 1976. Our evaluation of the tax system suggests that the marriage tax penalty violates due process and may violate equal protection and the First Amendment for some taxpayers. JEL Classifications: D15; H21; H24; H31; K34.

Capital Income Taxation, Economic Growth and Heterogeneity in the Motivation to Give

2012 ◽  
Vol 13 (3) ◽  
pp. 291-306
Author(s):  
Lars Kunze
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Overlapping Generations ◽  
Income Taxation ◽  
Capital Income ◽  
Capital Income Taxation ◽  
Overlapping Generations Model ◽  
Tax Rate ◽  
Motivation To Give ◽  
The Relationship

Abstract This study provides a comprehensive analysis of the relationship between capital income taxation and economic growth within an overlapping generations model when individuals may bequeath wealth. The altruistic concern is modeled as a synthesis of joy-of-giving and family altruism so that individuals may derive utility from the amount of bequest itself and by providing children with a disposable income later on in life. Using this framework, it is shown that, in contrast to the existing literature, increasing the capital income tax rate may well enhance growth under operative bequests.

scholarly journals Optimization of taxation of individuals in the national economy of Ukraine: methodological tools

2019 ◽  
Keyword(s):  
National Economy ◽  
Tax Policy ◽  
Methodological Approach ◽  
Personal Income ◽  
Cluster Method ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate ◽  
Tax Revenues ◽  
Combination Of Methods

A mechanism to enhance the efficiency of taxation of personal income is impossible without the existence of a set of methods and models of its support and organizational measures aimed at its implementation. In conditions of environmental fluctuations and instability of the national economy, the implementation of taxation functions is important. It will ensure not only the effectiveness of the developed mechanism, but also its social justice and transparency. The aim of the article is the study and formation of methodological tools for developing a mechanism for enhancing the efficiency of taxation of individuals in the national economy of Ukraine. Research methods: a combination of methods of time series analysis, spectral analysis, cluster analysis, investment analysis and the scenario approach allows forecasting tax revenues and tracing their impact on the national economy, a cluster method for studying the efficiency of the tax system based on the use of the k-means method. Results: a methodological toolkit was developed to provide a mechanism for enhancing the efficiency of taxation of personal income, containing a methodological approach to determining the effective tax rate, a model for predicting tax revenues and enhancing the country's economic activity, cluster models of tax administration that allows to develop an effective tax policy. Three scenarios for the development of the tax system of the national economy are proposed: standard, optimistic and pessimistic, which are based on calculations of point and interval forecasts. Conclusions: a methodological approach has been developed to build an effective tax rate for taxing the income of individuals, takes into account subsidizing and generating excess income for elements and allows for the formation of an effective tax policy in order to increase tax revenues.

Abzug von Eigenkapitalzinsen als Betriebsausgaben – ein steuersystematischer Beitrag zur Krisenabsicherung von Unternehmen

2012 ◽  
Vol 13 (3) ◽  
pp. 214-238
Author(s):  
Manfred Rose ◽  
Daniel Zöller
Keyword(s):  
Equity Capital ◽  
Capital Gains ◽  
Capital Income ◽  
Equity Financing ◽  
Legal Form ◽  
Tax System ◽  
Traditional System ◽  
Flat Rate ◽  
The Status ◽  
The Government

AbstractThe article deals with the development of a new model for taxing personal capital income and business profits incorporating elements of a (lifetime oriented) ACE system and of a traditional system of capital income taxation. This new approach adheres to decision neutrality at the enterprise level while taking into account both international competitiveness of company taxation and the requirement to meet the redistribution goal of the government. Neither a purely consumption based tax system nor the traditional tax system is capable to meet these requirements in a similar way. The distinctive core of the new system is that - according to the ideal approach of taxing lifetime income - notional interest on equity capital is deductible from the taxable profit of enterprises irrespective of their legal form. Interest income, dividends and capital gains received by individuals will be taxed according to a flat rate tax when they are withdrawn from their qualified bank accounts. Compared to the status quo, the introduction of the proposed tax system in Germany would make equity financing of investments more attractive. This could provide companies with the necessary cushion to survive financial or economic crises as they would be equipped with more equity capital.

Research on the Impact of Resource Tax Reform upon the Development in West China

2014 ◽  
Vol 962-965 ◽  
pp. 1813-1817
Author(s):  
En Lai Bai
Keyword(s):  
Economic Growth ◽  
Tax Reform ◽  
Industrial Structure ◽  
Ecological Environment ◽  
Tax System ◽  
West China ◽  
Tax Rate ◽  
Resource Taxation ◽  
Sustainable Economic Growth ◽  
The Impact

The economy has been continuously growing along with constant changes and innovations in the resource tax system. Through the background and implication of resource tax reform as well as the mechanism of how such reform affects West China, we can find out the impact of such reform upon sustainable economic growth, the ecological environment and all sectors in West China. In order to further optimizing and upgrading the industrial structure in West China, in my opinion, we should take the following five countermeasures: 1) The scope of taxation is to be enlarged; 2) The tax rate is to be increased step by step; 3) The resource taxation mechanisms are to be integrated and simplified; 4) Preferential taxation polices are to be improved in West China; 5) Auxiliary reforms are to be carried out for the resource taxation.

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