scholarly journals Fiscal Effects of Labour Income Tax Changes in Russia

2020 ◽  
Vol 6 (3) ◽  
pp. 210-224
Author(s):  
S. G. Belev ◽  
◽  
N. S. Moguchev ◽  
K. V. Vekerle ◽  
◽  
...  
Keyword(s):  
Labor Market ◽  
Income Tax ◽  
Negative Impact ◽  
Fiscal Sustainability ◽  
Theoretical Research ◽  
Contribution Rate ◽  
The Social ◽  
Social Contribution ◽  
Social Contributions ◽  
The Government

The purpose of this article is to evaluate the fiscal effects of changes in social contribution rates in Russia for the period 2010–2014, which was marked by significant changes in tax legislation. The consequences of these changes for both the budget system and the labor market still have not been thoroughly studied. As the empirical and theoretical research shows, taxation could influence the labor market in two ways: through the intensive and extensive margin. This study tests the hypothesis about the two kinds of effects of taxation for Russia by using the data of the Russian Longitudinal Monitoring Survey. It is demonstrated that an increase in the social contribution rate causes a decline in labor participation both for women and men. Moreover, an increase in the social contribution rate causes a reduction in the net-of-tax wage level for women and men. The state has already exhausted the opportunities for raising social contributions and pushing the reforms further would mean jeopardizing budget revenues and fiscal sustainability. Generally, an increase in social contributions has had a negative impact on the government’s revenues from social contributions and the personal income tax. It can be concluded that in general, the fiscal effects of the reforms were negative rather than positive. We would recommend the government to reconsider the current social contribution rates. Since the labour market is highly sensitive, it is possible to raise tax revenue through other means, thus avoiding adverse effects on public welfare.

scholarly journals Social Security Contribution Rate and Its Impacts on Labor Demand of Enterprises in Carbon Neutral Context

2021 ◽  
Vol 275 ◽  
pp. 02059
Author(s):  
Haizhu Zhao ◽  
Lianhua Luo
Keyword(s):  
Social Security ◽  
Labor Demand ◽  
State Council ◽  
Contribution Rate ◽  
Social Security Contribution ◽  
The Social ◽  
Heterogeneity Analysis ◽  
The Government ◽  
Total Labor ◽  
Labor Remuneration

With the government setting stricter standard on carbon emission, enterprises are facing more environmental pressure and cost these years. At the same time, China’s State Council has officially announced a further reducing the social security contribution rate from May 1, 2019, it is worthy of assessing that if the reduction would decompress enterprises and promote labor demand. Our results shows that social security contribution rate does not have significantly impacts on enterprises’ labor demand overall. However, when wage and benefit are controlled, it has a direct impact on labor demand. Basic regression and heterogeneity analysis both confirm it. Wage and benefit play intermediary roles as the results show. Social security contribution rate has negatively impact on wage and benefit, which help to keep the total labor remuneration and then labor demand unchanged. State-owned and private enterprises show similar results. However, laborintensive and non-labor-intensive enterprises show slightly different results.

scholarly journals Tax or Subsidy? Optimal Carbon Emission Policy: A Supply Chain Perspective

2020 ◽  
Vol 12 (4) ◽  
pp. 1548 ◽  
Author(s):  
Xing Yin ◽  
Xiaolin Chen ◽  
Xiaolin Xu ◽  
Lianmin Zhang
Keyword(s):  
Supply Chain ◽  
Carbon Emission ◽  
Negative Impact ◽  
Green Technology ◽  
Manufacturing Firm ◽  
Numerical Studies ◽  
The Social ◽  
The Government ◽  
Increasing Demand ◽  
The Cost

With a rigid requirement for environment protection, governments need to make appropriate policies to induce firms to adopt green technology in consideration of the rapidly increasing demand for environmentally friendly products. We investigated the government policy from the perspective of a supply chain, which consisted of the upstream government (she) and the downstream manufacturing firm (he). The government decided on the policy (tax or subsidy) to maximize the social welfare, while the firm decided on the greenness level of the product, which affects the consumers’ choice behavior and hence his own demand. Assuming else being equal, the government should adopt the tax policy if consumers are very sensitive to the greenness, the cost of greening is high, or the negative impact due to carbon emission is large, and subsidize the firm otherwise. We also conduct some numerical studies when price is endogenous. The main insights can be carried over.

Designing optimal linear rules for flexible retirement

2003 ◽  
Vol 2 (3) ◽  
pp. 273-293 ◽  
Author(s):  
ANDRÁS SIMONOVITS
Keyword(s):  
Private Information ◽  
Contribution Rate ◽  
Social Constraint ◽  
Flexible Retirement ◽  
Linear Rule ◽  
The Social ◽  
Benefit Function ◽  
Optimal Linear ◽  
The Government ◽  
Rule Making

This paper applies the method of mechanism design to find optimal linear pension rules (contribution rate and monthly benefit function) for flexible retirement: First the government announces a rule, making the benefit dependent on employment length. Each individual, having private information on his own expected lifespan and utility function, optimizes his employment length, conditional on that rule. The government chooses the optimal Bayesian linear rule, which maximizes the social welfare (e.g. the aggregate individual maxima) under a social constraint (e.g. the aggregate net lifetime contribution equals zero). Under this rule there is a better compromise between incentives and insurance than under so-called actuarially fair benefits.

scholarly journals Nonlinear Tax Elasticities And Their Implications For The Structural Budget Balance

2011 ◽  
Vol 27 (4) ◽  
pp. 113 ◽  
Author(s):  
Charl Jooste ◽  
Ruthira Naraidoo
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Linear Models ◽  
Value Added ◽  
Fiscal Sustainability ◽  
Economic Cycle ◽  
Contraction Phase ◽  
The Government ◽  
Fiscal Prudence ◽  
Structural Budget

<p>Research on tax elasticities in South Africa mainly employs linear models and shows that taxes evolve symmetrically irrespective of the economic cycle. This study extends this research to show that taxes behave asymmetrically and nonlinearly during expansions and contractions. Estimated linear elasticities imply that a one percent expansion in the cycle increases personal income tax, corporate income tax and value added tax by 1.43, 2.52 and 0.99 percent, respectively. However, estimated nonlinear elasticities are significantly different. During an expansion, the above elasticities increase by 1.89, 2.76 and 2.17 percent, respectively while during a contraction phase these elasticities increase by 0.89, 0.88 and 0.82 respectively. This finding of low tax collection during economic contractions has important implications for fiscal sustainability and overall fiscal prudence in South Africa. The findings of high tax elasticities during expansions might explain the underestimation of revenue by the government.</p>

scholarly journals Ecuador

2019 ◽  
Vol 19 (379) ◽  
Author(s):  
Keyword(s):  
Central Bank ◽  
Economic Reform ◽  
Negative Impact ◽  
Safety Net ◽  
Social Safety Net ◽  
Social Unrest ◽  
National Assembly ◽  
The Social ◽  
Fuel Subsidies ◽  
The Government

A 36-month Extended Fund Facility (EFF) arrangement with access of SDR 3.035 billion (435 percent of quota or about US$4.189 billion) was approved on March 11, 2019. The first review was concluded on June 28, 2019. At the beginning of October, an economic reform package was announced, including the immediate liberalization of prices for gasoline and diesel. Following protracted protests and social unrest, the authorities retracted the decree mandating the removal of fuel subsidies. The government continues to negotiate a revised fuel subsidy decree with a broad representation of civil society and hopes to reach an agreement in the foreseeable future. Completing the upgrade of the social safety net, recently initiated by the government, remains a priority and a prerequisite for a successful fuel subsidy reform. On November 17, 70 out of 133 legislators voted to reject an urgent package of economic laws, including key reforms under the program: a tax code, central bank code, and organic budget code. The government submitted a revised version of the tax code to the National Assembly as an urgent economic reform; this version was approved with minor modifications on December 9. The government also intends to submit revised drafts of the central bank and organic budget codes separately in the coming months, after internalizing feedback from lawmakers. Economic growth has slowed as projected in 2019, and in 2020, a less contractionary fiscal stance and higher oil production than previously expected should help mitigate the potential negative impact of political uncertainty and provide a fillip to the economy.

scholarly journals Privatization of State Owned Enterprises in The Welfarestate Perspective

2018 ◽  
Vol 54 ◽  
pp. 03008
Author(s):  
Tuti Widyaningrum ◽  
Rike Yunita Budi Hutami
Keyword(s):  
Welfare State ◽  
Analytical Study ◽  
Negative Impact ◽  
The State ◽  
Legal Principles ◽  
The People ◽  
The Social ◽  
The Government ◽  
Privatization Policy ◽  
The Welfare State

This paper proposed an analytical study and investigation about State-owned enterprises (SOEs) privatization policy against welfare state perspective. Other than having an economic impact it also led to a constitutional polemic in Indonesia. So far, privatization of SOEs is considered as the best solution for SOEs to be more productive and efficient when handled by the private sector rather than controlled and managed by the state. However, the negative impact of privatization is not least disadvantageous for the state especially to the people where there are no guarantees and legitimacy from the state responsibility when SOEs has already profit oriented. This research would like to find a new concept of privatization of SOEs in accordance with the welfare state perspective. This research used a normative juridical legal research method. This method was chosen because the object was of norms and doctrines and legal principles related to the title of this research. The Author believes, Privatization has changed the social welfare schemes at as well as distorted the role and responsibilities of the state in realizing common prosperity. The conclusion is the Government should to review all regulations concerning the SOEs privatization and revoke regulations that are contrary to the welfare state principle in Indonesia.

scholarly journals Social Marketing as a Factor for Competition Development in the Sphere of Managing Blocks of Flats

2019 ◽  
Vol 8 (2) ◽  
pp. 404-420
Author(s):  
Alexander Sukhodolov ◽  
Nadezhda Novikova ◽  
Irina Tsvigun
Keyword(s):  
Mass Media ◽  
Market Economy ◽  
Social Marketing ◽  
Negative Impact ◽  
The State ◽  
The Social ◽  
The Mass Media ◽  
The Government ◽  
Social Market

The reform of the Russian housing utilities sector started about thirty years ago. Nowadays the word reform is used in the mass media not so often, the government document concerning the housing utilities sector does not contain this word either. Some politicians claim in their interviews that the problems of the housing utilities sector are not so urgent nowadays. The article reveals that these problems have become latent, and, despite the fact, that there have been several achievements in this sector, none of the proposed goals of reforming the housing utilities sector, that are important for the market economy, has been achieved. For instance, there is no competition between companies managing blocks of flats; such a competition was expected by the reformers. The article emphasizes that though the housing utilities sector is developing and the amount of managing companies is continuously increasing, the housing utilities fees do not depend on the quality and quantity of these utilities and are guaranteed for the managing companies that are very difficult to replace. The article proves the negative impact of homeowners’ passivity on competition development, causes for it are considered and systematized in the context of opportunities the social market can provide to diminish them. The article proves that a range of problems arising while one puts into practice the state idea of having active homeowners in blocks of flats can be solved with the help of social marketing programmes. The probable actors of social marketing are defined, some of its instruments and channels are demonstrated. The article proposes a set of principles necessary for creating and putting into practice social marketing programmes aimed at solving problems of making customers of housing utilities sector demanding and creating competition in the housing utilities sector.

scholarly journals FINANCIAL DEVELOPMENT OPPORTUNITIES OF LATVIA’S SOCIAL SYSTEM AGAINST THE BACKDROP OF CRISIS

2010 ◽  
Vol 1 (2) ◽  
pp. 7
Author(s):  
Vilnis Ādamsons
Keyword(s):  
Social Environment ◽  
Financial Development ◽  
Social System ◽  
Financial Regulation ◽  
Negative Impact ◽  
Social Systems ◽  
State Budget ◽  
National Budget ◽  
The Social ◽  
The Government

Latvian social system is ahead of serious financial problems. The article analyses causes and beginnings of the crisis, in the context of the 1st budget level of social systems in relation to the national budget, as well as the negative impact of the state budget on the social security budget for the financial future. The government also discussed the measures taken by the social system of financial regulation and their impact on society's social environment. Recommendations have been developed for improvement of the situation.

scholarly journals Consolidated reporting of the single social contribution, personal income tax and military tax: innovations of 2021

2021 ◽  
Vol 68 (1) ◽  
pp. 96-102
Author(s):  
Ye. Sheketa ◽  
N. Kaziuka
Keyword(s):  
Income Tax ◽  
Social Protection ◽  
General System ◽  
Personal Income ◽  
Personal Income Tax ◽  
State Budget ◽  
The Social ◽  
Social Contribution ◽  
The One ◽  
Taxation System

The essence of the unified social contribution as an important component of the social protection system, and personal income tax and military tax, which, on the one hand, play a significant role in forming the revenue part of the state budget of Ukraine and, on the other, are the part of the costs affect the financial result of the entity is investigated in this paper. The main normative legal acts of Ukraine regulating the procedure of accrual, payment, accounting and reporting of the unified social contribution, personal income tax and military tax are analyzed, separate provisions of the legislation defining amendments to the submission of a single consolidated quarterly reporting of these taxes and payments are highlighted. The peculiarities of displaying information on the unified social contribution by legal entities and private entities-entrepreneurs, that is, all employers, regardless of the taxation system, as a part of quarterly reporting of personal income tax and military tax are formed. The peculiarities of reporting of the unified social contribution by private entities-entrepreneurs on the simplified taxation system by submitting as a part of the Declaration of the single taxpayer (quarterly/annual) Annex 1 with reflection of information about the amount of the unified social contribution paid during the quarter/year are revealed. The peculiarities of displaying information concerning single social contribution by private entities-entrepreneurs on the general system of taxation as a part of the Declaration of property and income are determined. The irrationality of the legislative initiative to combine reporting of the unified social contribution, personal income tax and military tax by different methods and bases of their calculations, various budget allocations of such funds for their payment, different users of information provided in these tax reports, various ways of errors correction and submission of clarifying reports, long period of information processing by state bodies in case of replacing monthly tax period by quarterly one while accruing various types of social benefits, pensions, etc. is substantiated.

scholarly journals Budget Tax Revenues and Losses from External Labor Migration in Russia

2019 ◽  
Vol 5 (3) ◽  
pp. 190-203
Author(s):  
M. O. Kakaulina ◽  
Keyword(s):  
Labor Migration ◽  
Income Tax ◽  
Negative Impact ◽  
Personal Income ◽  
Personal Income Tax ◽  
Excise Tax ◽  
Tax Revenues ◽  
International Labor ◽  
International Labor Migration ◽  
The Government

One of the reasons behind declining budget revenues can be external migration. This article aims to describe the methodology for estimation of tax losses and revenues from international labor migration for specific types of taxes. Changes in personal income tax revenues are estimated by using the data on the number of labor emigrants (immigrants) for specific occupations, nominal gross monthly wage of employees in this occupation in Russia, standard child tax deductions and the corresponding personal income tax rate for residents (non-residents). Changes in VAT and excise tax revenues caused by the current trends in labor migration are estimated in accordance with the structure of household consumption. The amount of tax revenues (and losses) is calculated as the product of the sum of VAT and excise tax payments made by one member of a household per year when buying goods, works and services on the territory of Russia, and the number of emigrants (or immigrants). The research uses the data provided by Rosstat, Federal Tax Service of Russia and the Analytical Centre under the Government of the Russian Federation for 2012–2017. The conclusion is made that international migration has a negative impact on the tax revenues of the country’s consolidated state budget. Although, throughout the whole of the given period, the balance of additional revenues from VAT, excise taxes and the personal income tax (PIT) on earned income and budget losses from these taxes remained positive, in absolute terms, this balance decreased significantly. Trends in international labor migration affected the balance of tax losses and revenues. Therefore, the government’s attempts to target international labor migration by reforming the tax legislation seem quite reasonable: the upcoming tax reforms will include the introduction of the concept ‘centre of vital interests’ as the second criterion of residence and equalization of the PIT rate for tax residents and non-residents. The proposed methodology can thus prove to be an effective tool for the Federal Tax Service of Russia to estimate the resulting changes in tax revenues as well as other changes related to labor migration processes.

Sign in / Sign up

Export Citation Format

Share Document