The Progressive Carbon Tax: And the Ability to Pay Doctrine of Taxable Income - Implications to Economic Growth and the Environment: The Issue of Sustainability for Thailand

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.

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Measuring the impact of marginal tax rate reform on the revenue base of South Africa using a microsimulation tax model

South African Journal of Economic and Management Sciences ◽

10.4102/sajems.v18i3.795 ◽

2015 ◽

Vol 18 (3) ◽

pp. 380-394 ◽

Cited By ~ 2

Author(s):

Yolande Jordaan ◽

Nicholaas J Schoeman

Keyword(s):

Economic Growth ◽

Tax Reform ◽

Fiscal Year ◽

Optimum Level ◽

Tax Rates ◽

Strong Response ◽

Taxable Income ◽

Marginal Tax Rates ◽

Tax Efficiency ◽

The Impact

This paper is primarily concerned with the revenue and tax efficiency effects of adjustments to marginal tax rates on individual income as an instrument of possible tax reform. The hypothesis is that changes to marginal rates affect not only the revenue base, but also tax efficiency and the optimum level of taxes that supports economic growth. Using an optimal revenue-maximising rate (based on Laffer analysis), the elasticity of taxable income is derived with respect to marginal tax rates for each taxable-income category. These elasticities are then used to quantify the impact of changes in marginal rates on the revenue base and tax efficiency using a microsimulation (MS) tax model. In this first paper on the research results, much attention is paid to the structure of the model and the way in which the database has been compiled. The model allows for the dissemination of individual taxpayers by income groups, gender, educational level, age group, etc. Simulations include a scenario with higher marginal rates which is also more progressive (as in the 1998/1999 fiscal year), in which case tax revenue increases but the increase is overshadowed by a more than proportional decrease in tax efficiency as measured by its deadweight loss. On the other hand, a lowering of marginal rates (to bring South Africa’s marginal rates more in line with those of its peers) improves tax efficiency but also results in a substantial revenue loss. The estimated optimal individual tax to gross domestic product (GDP) ratio in order to maximise economic growth (6.7 per cent) shows a strong response to changes in marginal rates, and the results from this research indicate that a lowering of marginal rates would also move the actual ratio closer to its optimum level. Thus, the trade-off between revenue collected and tax efficiency should be carefully monitored when personal income tax reform is being considered.

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Impacts of Carbon Tax Policy on CO2 Mitigation and Economic Growth in China

Advances in Climate Change Research ◽

10.3724/sp.j.1248.2011.00124 ◽

2011 ◽

Vol 2 (3) ◽

pp. 124-133 ◽

Cited By ~ 13

Author(s):

Shenglü Zhou ◽

Minjun Shi ◽

Na Li ◽

Yongna Yuan

Keyword(s):

Economic Growth ◽

Tax Policy ◽

Carbon Tax ◽

Co2 Mitigation

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AN EMPIRICAL INVESTIGATION OF THE IMPACTS OF CARBON TAX ON ECONOMIC GROWTH IN NIGERIA

International Journal of Advanced Academic Research ◽

10.46654/ij.24889849.s61013 ◽

2015 ◽

pp. 114-131

Author(s):

Alhassan Mohammed ◽

Aminu Aminu

Keyword(s):

Economic Growth ◽

Carbon Emission ◽

Carbon Tax ◽

Negative Impact ◽

Positive Impact ◽

Strict Adherence ◽

Tax Rate ◽

Long Run ◽

Causality Tests ◽

Bound Test

This study is designed to investigate the anticipated impact of carbon tax on economic growth in Nigeria using the scenario of the proposed tax rate on the primary carbon emission-related activities. This study therefore employed ARDL bound test and Toda-Yamamoto causality tests to show the existence of long-run relationship between carbon tax and economic growth. The study therefore revealed that: carbon tax has positive impact on economic growth; governance has negative impact on economic growth: non-existence of causal relationship between carbon tax and economic growth in Nigeria. Hence, the study recommended among others, upward review of carbon tax and strict adherence to the regulation of tax rate on carbon emission be enforced, as well as consideration for application of tax rate on other non-primary emitters of carbon in Nigeria.

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PAJAK KARBON, KERUSAKAN KARBON, DAN PERTUMBUHAN EKONOMI DI LIMA BELAS NEGARA SELAMA 27 TAHUN

JMB : Jurnal Manajemen dan Bisnis ◽

10.31000/jmb.v7i2.1060 ◽

2018 ◽

Vol 7 (2) ◽

Author(s):

Riris Rotua Sitorus ◽

Tangguh Pratysto

Keyword(s):

Economic Growth ◽

Open Economy ◽

Carbon Tax ◽

Control Variable ◽

Generalized Least Squares ◽

Consumption Expenditure ◽

Carbon Production ◽

Working People ◽

Per Capita ◽

Generalized Least Squares Estimation

The purpose of this study is to analyze the effect of carbon tax and carbon damage on economic growth in 15 (fifteen) countries from 1990 to 2017. Based on the results of research by weather scientists who stated that there are 50-500 possibilities to limit global warming at 2 degrees Celsius above average global temperatures from pre-industrial times throughout the 21st century.Global warming is caused by cumulative carbon emissions which continue to increase from year to year, resulting in threats to the world's sustainable development. Therefore carbon production must be limited by imposing a tax on carbon so that economic growth can run normally and even increase.Researchers used the open economy model Y = (C, I, G, NX) namely final household consumption expenditure (C), foreign direct investment (I), government final consumption general expenditure (G), and import export per GDP (NX) for control variables. The researcher also used the Cobb-Douglas Y = (K, L) production function, namely gross capital formation (K) and the ratio of working people per population (L) to the control variable. The data used were panel data in 15 countries that applied Carbon Tax from 1990 to 2017. Researchers used GLS (Generalized Least Squares) estimation to analyze the effect of carbon tax and carbon destruction on economic growth.The result is a carbon tax can stimulate the growth of real gross domestic product per capita and carbon damage hinder economic growth.

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Objections to a Carbon Tax

Paying for Pollution ◽

10.1093/oso/9780190694197.003.0009 ◽

2019 ◽

pp. 115-128

Author(s):

Gilbert E. Metcalf

Keyword(s):

Economic Growth ◽

Greenhouse Gas Emissions ◽

Greenhouse Gas ◽

Climate Policy ◽

Coal Mining ◽

Emission Reduction ◽

Carbon Tax ◽

Coal Miners ◽

Gas Emissions

This chapter addresses common objections to a carbon tax including whether the science is settled enough to put a price on greenhouse gas emissions, whether the tax will hurt economic growth, or whether the tax will kill jobs. It dispels a number of myths about climate policy and coal mining while making the case for providing transitional relief to coal miners and other groups particularly hard hit by the tax. It also discusses how the tax can be designed to ensure that long-term emission reduction goals are met.

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The Climate Change Objection to Economic Growth

10.1093/oso/9780190462956.003.0011 ◽

2018 ◽

Author(s):

Bas van der Vossen ◽

Jason Brennan

Keyword(s):

Climate Change ◽

Economic Growth ◽

Carbon Tax ◽

Rich Country ◽

Global Poverty ◽

Poor Countries ◽

Dangerous Climate Change

This book argues for increased economic growth as a cure for poverty. This chapter responds to the objection that such growth is unacceptable because it leads to dangerous climate change. The authors agree that such growth will lead to climate change, that such climate change is dangerous, and endorse a carbon-tax scheme that allows sufficient growth to address global poverty. Two objections to this view are discussed. The first holds that growth should be stopped as much as possible. However, this ignores the fact that dangerous climate cannot be prevented, and the extent of suffering by the world’s poor because of a lack of growth. The second objection wants to reduce growth in rich societies, but not poor societies. But this overlooks the fact that different economies are intertwined, so that a reduction in growth in a rich country can often disproportionally harm poor countries.

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The impact of a carbon tax on economic growth and carbon dioxide emissions in Ireland

Journal of Environmental Planning and Management ◽

10.1080/09640568.2012.709467 ◽

2013 ◽

Vol 56 (7) ◽

pp. 934-952 ◽

Cited By ~ 26

Author(s):

Thomas Conefrey ◽

John D. Fitz Gerald ◽

Laura Malaguzzi Valeri ◽

Richard S.J. Tol

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Carbon Dioxide Emissions ◽

Carbon Tax ◽

The Impact

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Carbon emissions reduction strategies and poverty alleviation in India

Environment and Development Economics ◽

10.1017/s1355770x0800497x ◽

2009 ◽

Vol 14 (3) ◽

pp. 323-348 ◽

Cited By ~ 18

Author(s):

VIJAY P. OJHA

Keyword(s):

Economic Growth ◽

Computable General Equilibrium ◽

Poverty Reduction ◽

Carbon Tax ◽

Market Price ◽

Computable General Equilibrium Model ◽

Emission Permits ◽

Tax Revenues ◽

Tradable Emission Permits ◽

Per Capita

ABSTRACTThis paper, based on a computable general equilibrium model of the Indian economy, shows that a domestic carbon tax policy that recycles carbon tax revenues to households imposes heavy costs in terms of lower economic growth and higher poverty. However, the decline in economic growth and rise in poverty can be minimized if the emissions restriction target is modest, and carbon tax revenues are transferred exclusively to the poor. India's participation in an internationally tradable emission permits regime with grandfathered emissions allocation is preferable to any domestic carbon tax option, provided the world market price of emission permits remains low. Even better would be if India participated in a global system of tradable emission permits with equal per capita emission entitlements. India would then be able to use the revenues garnered from the sale of surplus permits to speed up its economic growth and poverty reduction and yet keep its per capita emissions below the 1990 per capita global emissions level.

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