A Model of Dynamic Tax Planning with an Application to Estate Freezes

2006 ◽  
Vol 28 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Kenneth J. Klassen ◽  
Richard C. Sansing
Keyword(s):  
Time Horizon ◽  
Strong Support ◽  
Tax Planning ◽  
Conventional Wisdom ◽  
Irreversible Investment ◽  
Financing Structure ◽  
Tax Savings ◽  
Using Data

This paper develops a model of dynamic tax planning in which the implementation of a tax plan involves exercising an option to execute an irreversible investment or financing structure transaction. The model considers four aspects of such transactions and shows that transactions are deferred if the tax savings from the transaction are lower or if the time horizon over which the transaction can be executed is longer. Deferral is also increasing in cost of a future unfavorable event to which the irreversibility of the transaction limits one's ability to respond, but may increase or decrease with a change in the probability that an unfavorable event occurs. We apply the model to a common estate freeze tax plan in Canada. Undertaking an estate freeze requires a private company's owner-manager to choose how one's business assets are to be distributed at death. In contrast to the conventional wisdom regarding the timing of this strategy, we find that waiting to implement the strategy is often optimal. We test the model using data on family-owned businesses in Canada and find strong support for the model's predictions.

Legislative Decision-Making

2021 ◽  
pp. 83-108
Author(s):  
Neilan S. Chaturvedi
Keyword(s):  
Decision Making ◽  
Interest Groups ◽  
Logic Model ◽  
Conventional Wisdom ◽  
Interview Data ◽  
Party Leadership ◽  
Using Data ◽  
Voting Decisions ◽  
Legislative Decision

Chapter 4 examines the logic used by moderates in determining how to vote on legislation. Using interview data from six retired senators, Chapter 4 examines the pressures they face, both within the chamber with party leadership and outside the chamber with constituents and interest groups. While conventional wisdom would dictate that moderates vote only for legislation that they find palatable, and vote against all else, using data collected by Project Vote Smart capturing the issue positions of many senators, we see that all too often this is not the case—centrists get “railroaded” by leaders and vote with the majority, even when the legislation goes against their stated position. Using voting decisions on key votes and publicly stated positions by senators, the chapter then creates a logic model that illustrates how moderates decide how to vote on legislation.

Cyberstalking Victimization: An Empirical Assessment of RAT Among Female Iranian College Students

2020 ◽  
pp. 088626052097582
Author(s):  
Saeed Kabiri ◽  
Jaeyong Choi ◽  
Seyyedeh Masoomeh (Shamila) Shadmanfaat ◽  
Julak Lee
Keyword(s):  
Structural Equation ◽  
Strong Support ◽  
Equation Model ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Online Victimization ◽  
Anglo American ◽  
Using Data ◽  
Iranian Students

The role of routine activity theory (RAT) as a guiding theoretical approach to understand online victimization has been well documented. However, the recent emphasis in criminology on its applicability to online victimization has largely been based on evidence from Anglo-American studies. This study fills this gap by testing the predictive utility of RAT for cyberstalking victimization, using data from a sample of female Iranian students. Our structural equation model showed that online exposure to motivated offenders, target suitability, and ineffective online guardianship were positively and significantly associated with cyberstalking victimization. Our results provide strong support for RAT, indicating its generalizability to a different sociopolitical context.

scholarly journals Being Healthy, Being Sick, Being Responsible: Attitudes towards Responsibility for Health in a Public Healthcare System

2019 ◽  
Vol 12 (2) ◽  
pp. 145-157 ◽  
Author(s):  
Gloria Traina ◽  
Pål E Martinussen ◽  
Eli Feiring
Keyword(s):  
Social Responsibility ◽  
Eating Habits ◽  
Personal Responsibility ◽  
Strong Support ◽  
Health Condition ◽  
Political Orientation ◽  
Public Healthcare ◽  
Promotion Policies ◽  
Health Responsibility ◽  
Using Data

Abstract Lifestyle-induced diseases are becoming a burden on healthcare, actualizing the discussion on health responsibilities. Using data from the National Association for Heart and Lung Diseases (LHL)’s 2015 Health Survey (N = 2689), this study examined the public’s attitudes towards personal and social health responsibility in a Norwegian population. The questionnaires covered self-reported health and lifestyle, attitudes towards personal responsibility and the authorities’ responsibility for promoting health, resource-prioritisation and socio-demographic characteristics. Block-wise multiple linear regression assessed the association between attitudes towards health responsibilities and individual lifestyle, political orientation and health condition. We found a moderate support for social responsibility across political views. Respondents reporting unhealthier eating habits, smokers and physically inactive were less supportive of health promotion policies (including information, health incentives, prevention and regulations). The idea that individuals are responsible for taking care of their health was widely accepted as an abstract ideal. Yet, only a third of the respondents agreed with introducing higher co-payments for treatment of ‘self-inflicted’ conditions and levels of support were patterned by health-related behaviour and left-right political orientation. Our study suggests that a significant support for social responsibility does not exclude a strong support for personal health responsibility. However, conditional access to healthcare based on personal lifestyle is still controversial.

Democratic Discontent in Old and New Democracies: Assessing the Importance of Democratic Input and Governmental Output

2014 ◽  
Vol 63 (1_suppl) ◽  
pp. 18-37 ◽  
Author(s):  
Stefan Dahlberg ◽  
Jonas Linde ◽  
Sören Holmberg
Keyword(s):  
Political System ◽  
Strong Support ◽  
Political Support ◽  
The Political ◽  
Wide Range ◽  
Input Side ◽  
Contrasting View ◽  
Output Side ◽  
Using Data ◽  
Democratic Principles

Although the phenomenon of dissatisfied democrats has been frequently discussed in the literature, it has not often been empirically investigated. This article sets out to analyse the discrepancy between the strong support for democratic principles and the widespread discontent with the way democracy works. Drawing on earlier research on the sources of political support, using data from a wide range of democracies, the relevance of two contrasting explanatory perspectives are investigated. The first perspective argues that the sources of democratic discontent are found on the input-side of the political system in terms of representation. The contrasting view argues that the output-side of the political system is most important, where the quality of government plays the pivotal role. The results of the empirical analysis suggest that, in general, both types of factor are important, but also that these processes to a large extent are conditioned by the level of institutional consolidation.

Assessing the Effectiveness of Business Support Services in England

2009 ◽  
Vol 27 (5) ◽  
pp. 557-582 ◽  
Author(s):  
Kevin F. Mole ◽  
Mark Hart ◽  
Stephen Roper ◽  
David S. Saal
Keyword(s):  
Small Firms ◽  
Sample Selection ◽  
Strong Support ◽  
Limited Liability ◽  
Programme Theory ◽  
High Profile ◽  
Differential Outcomes ◽  
Business Support ◽  
Publicly Supported ◽  
Using Data

In England, publicly supported advice to small firms is organized primarily through the Business Link (BL) network. Using the programme theory underlying this business support, we develop four propositions and test these empirically using data from a new survey of over 3000 English SMEs. We find strong support for the value to BL operators of a high profile to boost take-up. We find support for the BL’s market segmentation that targets intensive assistance to younger firms and those with limited liability. Allowing for sample selection, we find no significant effects on growth from ‘other’ assistance but find a significant employment boost from intensive assistance. This partially supports the programme theory assertion that BL improves business growth and strongly supports the proposition that there are differential outcomes from intensive and other assistance. This suggests an improvement in the BL network, compared with earlier studies, notably Roper et al. (2001), Roper and Hart (2005).

Who Knows Best what the People Want: Women or Men?

2008 ◽  
Vol 42 (1) ◽  
pp. 31-55 ◽  
Author(s):  
Karl-Oskar Lindgren ◽  
Magdalena Inkinen ◽  
Sten Widmalm
Keyword(s):  
Decision Making ◽  
Political System ◽  
Strong Support ◽  
Common Denominator ◽  
Considerable Effort ◽  
Representation Of Women ◽  
Liberal Democratic ◽  
The People ◽  
Policy Opinion ◽  
Using Data

The notion of representation lies at the heart of liberal democratic thinking, and over the years considerable effort has gone into defining and measuring the concept. The least common denominator in the voluminous literature is that in a representative political system there should be a certain amount of attitudinal congruence between masses and elites. One much-debated strategy for obtaining a better match between elite and mass policy opinion is that of increasing the representation of women in important decision-making positions in society. Using data on nearly 5,000 elite-mass dyads within 24 Indian villages, the authors find strong support for the view that a more equal representation of women increases opinion congruence between masses and elites. The results are challenging because they show that women are not only better equipped than men to politically represent women but also that they are better at representing men—and the results are shown to apply in a variety of socioeconomic contexts.

Do terms-of-trade effects matter for trade agreements? Theory and evidence from WTO Countries*

2013 ◽  
Vol 128 (4) ◽  
pp. 1837-1893 ◽  
Author(s):  
Rodney D. Ludema ◽  
Anna Maria Mayda
Keyword(s):  
Strong Support ◽  
Trade Agreements ◽  
Terms Of Trade ◽  
Most Favored Nation ◽  
International Trade Agreements ◽  
Trade Effects ◽  
Export Supply ◽  
Export Shares ◽  
World Economic ◽  
Using Data

Abstract International trade agreements are an important element of the world economic system, but questions remain as to their purpose. The terms-of-trade hypothesis posits that countries use tariffs in part to improve their terms of trade and that trade agreements cause them to internalize the costs that such terms-of-trade shifts impose on other countries. This article investigates whether the most-favored-nation (MFN) tariffs set by World Trade Organization (WTO) members in the Uruguay Round are consistent with the terms-of-trade hypothesis. We present a model of multilateral trade negotiations featuring endogenous participation that leads the resulting tariff schedules to display terms-of-trade effects. Specifically, the model predicts that the level of the importer’s tariff resulting from negotiations should be negatively related to the product of two terms: exporter concentration, as measured by the Herfindahl-Hirschman index (sum of squared export shares), and the importer’s market power, as measured by the inverse elasticity of export supply, on a product-by-product basis. We test this hypothesis using data on tariffs, trade, and production across more than 30 WTO countries and find strong support. We estimate that the internalization of terms of trade effects through WTO negotiations has lowered the average tariff of these countries by 22% to 27% compared to its noncooperative level.

scholarly journals Estimates of Public Sector Transaction Costs in NRCS Programs

2000 ◽  
Vol 32 (3) ◽  
pp. 555-563 ◽  
Author(s):  
Laura McCann ◽  
K. William Easter
Keyword(s):  
Transaction Costs ◽  
Nonpoint Source Pollution ◽  
Strong Support ◽  
Policy Instruments ◽  
Resource Conservation ◽  
Nonpoint Source ◽  
Economic Evaluations ◽  
Conservation Costs ◽  
Using Data ◽  
National Resource

AbstractWhen evaluating the economic efficiency of policies to reduce nonpoint source pollution, administrative or transaction costs are usually not taken into account. While the importance of transaction costs has been recognized in the theoretical literature, the fact that they are not incorporated in empirical analyses means that, in effect, these costs are given a zero value. This issue is examined quantitatively using data collected by the National Resource Conservation Service (NRCS). Transaction costs are found to be a significant portion (38 percent) of overall conservation costs. This provides strong support for including these costs in economic evaluations of alternative policy instruments.

scholarly journals International Tax Planning: The Foreign Affiliate Surplus Reclassification Rule

2019 ◽  
Vol 67 (4) ◽  
pp. 1233-1266
Author(s):  
Gwendolyn Watson
Keyword(s):  
Tax Planning ◽  
Foreign Affiliate ◽  
International Tax ◽  
Tax Savings

Bill C-48, the Technical Tax Amendments Act, 2012, introduced, among other things, several significant changes to the foreign affiliate surplus rules, including the adoption of the surplus reclassification rule in regulation 5907(2.02). The surplus reclassification rule is a broadly worded specific anti-avoidance rule that can apply to reclassify a foreign affiliate's exempt earnings (and exempt surplus) into taxable earnings (and taxable surplus) when the exempt earnings arise from certain tax-motivated dispositions of property. On the basis of a textual, contextual, and purposive interpretation of this provision, the author maintains that the rule should apply only in circumstances involving foreign affiliate surplus stripping—that is, tax-free transactions designed to convert low-taxed taxable surplus into exempt surplus that can be distributed or otherwise relied on to achieve Canadian tax savings.

scholarly journals ANALISIS PERENCANAAN PAJAK PENGHASILAN PASAL 21 SEBAGAI UPAYA EFISIENSI PAJAK PENGHASILAN BADAN USAHA PADA PT. ASURANSI ASEI INDONESIA CABANG MANADO

2019 ◽  
Vol 14 (3) ◽  
Author(s):  
Adikodrati M. Manangkalangi ◽  
Inggriani Elim ◽  
Novi S. Budiarso
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Descriptive Analysis ◽  
Tax Planning ◽  
Primary Data ◽  
Planning Methods ◽  
Net Method ◽  
Tax Benefits ◽  
Tax Savings ◽  
Tax Payments

Tax planning is one of the ways that taxpayers can use to make tax savings, without violating the constitution or the applicable taxation laws. Tax planning is used to anticipate tax evasion, so that the company can be consistent in payments, and also make corporate tax payments efficient. The research objective is to determine whether the application of tax planning methods used by PT. Asuransi Asei Indonesia Manado Branch in streamlining its tax payments, especially on income tax article 21. In this study the type of data used is qualitative data and quantitative data, while for the data source uses primary data, and the analytical method used is descriptive analysis method. Based on the results of the study, it was concluded that more efficient in paying taxes is to use the Gross-Up Method, rather than using the company's current tax planning method, the Net Method. Because the Gross-Up method, the company PT. Asuransi Asei Indonesia Manado Branch will provide tax benefits equal to article 21 income tax withheld from employee income, without the need for fiscal correction and for this case the allowance the company can provide through the Gross-Up Method is as much as Rp. 132,718,489.

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