Economic Analysis of Tax Reform

2003 ◽  
pp. 38-60
Author(s):  
A. Vasilieva ◽  
E. Gurvich ◽  
V. Subbotin
Keyword(s):  
Economic Analysis ◽  
Tax Reform ◽  
Fine Tuning ◽  
Simplified Model ◽  
Tax Burden ◽  
Tax System ◽  
Tax Revenues ◽  
Country Analysis ◽  
Cross Country ◽  
Major Target

The paper discusses progress in the implementation of tax reform in Russia. It is argued, basing on theoretical and cross-country analysis, that fine tuning of tax system is a more appropriate major target of reform, than cutting overall tax burden. A simplified model of demand for labor is used to estimate impact of tax reform on GDP composition and tax proceeds. The effect of reform on tax revenues is assessed as their reduction by 1.5% of GDP, compensated with expansion of tax bases. The decisions on further steps of tax reform are criticized as potentially dangerous for macroeconomic stability.

scholarly journals How Do Firms Use Cash Tax Savings? A Cross-country Analysis

2021 ◽  
Author(s):  
Danielle Higgins Green ◽  
Jon N. Kerr
Keyword(s):  
Multinational Corporations ◽  
Tax Avoidance ◽  
Cash Flows ◽  
Tax System ◽  
Country Level ◽  
Country Analysis ◽  
Cross Country ◽  
Use Tax ◽  
Tax Savings ◽  
Fund Investment

We examine how firms utilize cash generated via tax avoidance. Understanding how firms use these cash flows is important given the considerable global attention firms' tax avoidance activities have received. Using an international sample, we find that firms are more likely to invest cash tax savings or use them to repurchase shares rather than distribute them in the form of dividends. We find that our results hold for an international sample of domestic-only firms, distinguishing our study from U.S.-only studies, which focus on constraints and distortions of multinational corporations in a worldwide tax system. When partitioning on country-level governance, we find that firms in weak governance countries are more likely to use tax savings to fund investment and pay dividends. Taken together, our results suggest cash tax avoidance is associated with important firm decisions, and these associations vary across countries.

scholarly journals Corporate Inversions: The Migration Of Corporate Tax Revenue

2016 ◽  
Vol 32 (4) ◽  
pp. 1137-1144
Author(s):  
Joel Barker
Keyword(s):  
United States ◽  
Tax Reform ◽  
Tax Incentives ◽  
The United States ◽  
Business Strategies ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Revenues ◽  
Corporate Profits

Estimates of over 20 billion of tax revenue are lost to our economy because of corporate inversions. Therefore, lawmakers are actively exploring ways to stop the hemorrhaging of corporate tax-revenues, tighten restrictions on corporate inversions, and to find ways to collect on defer tax revenues. From a business prospective, corporate inversions are nothing less than prudent, innovative, business strategies to enhance corporate profits. However, it’s undoubtedly having a significant impact on U.S. tax revenues and ultimately reducing domestic investments. Ireland is now the most popular new home to many U.S. Corporations, especially within the pharmaceutical industry. The advantageous tax incentives offered by Ireland is a “no-brainer,” when compared to the heavy taxes levied upon domestic business. Since the Tax Reform Act of 1986, there has been no major tax reform to the United States Tax System. Despite the various proposals and recommendations made to address this growing economic issue, all concern parties are in consensus that the United States Tax System needs reform.

Chile inequality debate will drive tax reform demands

2020 ◽  
Keyword(s):  
Public Services ◽  
Tax Reform ◽  
Public Spending ◽  
Tax Burden ◽  
Left Wing ◽  
Tax System ◽  
Content Type ◽  
Lock In

Significance Although both the bill’s legislative future and the amount it would raise are uncertain, it reflects ever more explicit class polarisation and anger over inequalities. Impacts Chile’s current fiscal situation will increase the salience of the efficiency of public spending and its targeting. Through its impact on the quality of public services, Chile’s low tax burden helps to lock in inequalities. The regressive nature of Chile’s tax system is likely to be exploited by left-wing candidates in the 2021 presidential race.

The Russian Tax System: A View from the Inside

2012 ◽  
pp. 116-132
Author(s):  
S. Sayfieva
Keyword(s):  
Value Added ◽  
Tax Burden ◽  
Net Income ◽  
Economic Activities ◽  
Tax System ◽  
Tax Revenues ◽  
System A ◽  
Gross Value Added ◽  
Control Net ◽  
Over Time

The article considers the tax potential of the composition of GDP by type of primary incomes in 2000—2010 by main economic activities and branches of industry. The analysis has shown that the components of GDP, which decline (net income), comprise the basis of the tax system; meanwhile the proportion of the components, hardly covered by taxation (hidden salary), or those, which taxation is difficult to control (net mixed income), increases. The author comes to the conclusion that the proportion of the industry tax burden and the share of gross value added in GDP should be balanced. Otherwise, the tax system becomes ineffective. The analysis of the structure of industry tax revenues over time suggests a high differentiation of taxes on economic activities and industries.

Tax system and informal economy: a cross-country analysis

2015 ◽  
Vol 47 (17) ◽  
pp. 1775-1787 ◽  
Author(s):  
K. Nagac
Keyword(s):  
Informal Economy ◽  
Tax System ◽  
Country Analysis ◽  
Cross Country

A fragile agreement on global tax reform is near

2021 ◽  
Keyword(s):  
Tax Competition ◽  
Tax Reform ◽  
Developing Nations ◽  
Costs And Benefits ◽  
Political Pressure ◽  
Tax System ◽  
Content Type ◽  
Tax Revenues ◽  
The Us

Significance Political pressure for tax reform has increased as many large tech firms, in particular, have made large profits during the pandemic, and many countries need to raise tax revenues to bolster their budgets. Impacts Once there is more certainty of the details, governments are likely to have very different views about the costs and benefits of the plan. The US proposal to extend Pillar 1 marks the start of a shift in the global tax system from source taxation towards market country taxation. Many small and developing nations will oppose the US plan to extend Pillar 2 to include limiting tax competition, as they benefit from this.

COMPETITIVENESS OF THE TAX SYSTEM IN THE CONTEXT OF EXPANDING THE FISCAL SPACE OF UKRAINE

2020 ◽  
Vol 2020 (10) ◽  
pp. 34-53
Author(s):  
Inna LUNINA ◽  
◽  
Olena BILOUSOVA ◽  
Nataliya FROLOVA ◽  
◽  
...  
Keyword(s):  
Open Economy ◽  
Shadow Economy ◽  
Tax Burden ◽  
Tax Reforms ◽  
Tax System ◽  
Tax Revenues ◽  
Fiscal Space ◽  
The Impact ◽  
The Eu

For many countries, the competitiveness of the tax system is a complex issue, as it not only reduces the tax burden on corporate income, whileensuring the intensification of economic development, but also leads to risks of lower tax revenues and loss of public financesustainability. Tax competition requires finding a compromise between ensuring investments and expanding fiscal space to deal withurgent socio-economic challenges in the face of new global challenges. The authors carried out a comparative analysis of the efficiency of tax reforms in terms of their impact onreducing the tax burden on business and increasing the competitiveness of tax systemsin the EU and Ukraine. Despite the success of such reforms in the EU, it was found that Ukrainian reforms have not been quite as efficient in achieving the appropriate level of investments and creating conditions for reducing the shadow economy. It is determined that tax reforms in Ukraine were carried out without considering specific effects of changes in corporate income taxation conditions, in particular, the impact of lower tax rates on tax revenues in the medium and long term, intensification of innovation and investment activities, investment dynamics abroad, etc. It is proved that the priority of increasing the international tax competitiveness of Ukraine should not consist intax ratesdecreasing and eliminationof tax restrictions on the formation of the corporate income tax base, but in the improvement of depreciation policy in terms of accelerating reimbursement of fixed assets and intangible assets, stimulating capital investment in the renewal of production on an innovative basis. It is substantiated that the development of the tax system of Ukraine (as well asother countries with small, open economy and with high level of corruption and shadow economy) should take place within the framework of a holistic concept of sustainable development, taking into account the possible consequences of budget decisions for both current and long-term budgets that will apply to future generations.

scholarly journals Performance assessment of reform in the field of ensuring Ukraine’s tax security

2020 ◽  
Vol 2020 (3) ◽  
pp. 144-154
Author(s):  
Oleksandr KUSHNERUK ◽  
◽  
Nataliia ALEKSEIENKO ◽  
Keyword(s):  
Tax Evasion ◽  
Tax Administration ◽  
Tax Burden ◽  
Tax Reforms ◽  
State Budget ◽  
Tax System ◽  
Tax Revenues ◽  
Tax Changes ◽  
Revenue Administration ◽  
Positive Effect

During the period of 2014-2019 Ukraine experienced many tax changes, which concerned the optimization of the tax system to overcome threats to tax security in the field of tax payment, filling of the state budget and tax administration. Changes in the tax system have significantly affected the amount of tax revenues, but there is uncertainty about their effectiveness in ensuring tax security. The purpose of the article is to quantify the level of effectiveness of tax reforms in order to ensure tax security. Based on the analysis of publications in 2016-2019, major tax reforms in Ukraine were studied and the indicators that assess the effectiveness of reforms in the field of tax security were selected. The analysis of indicators of efficiency of administration and tax burden in Ukraine, Georgia and Poland in 2008-2019 is carried out. It is determined that there has been a reduction in the risks of tax evasion and the risks of non-payment of taxes due to improved tax administration. In general, the time for tax administration in Ukraine was significantly reduced and this was the most drastic change. In 10 years, the time of preparation and payment of taxes (hours) has been reduced from 860 hours to 328 hours! As a result, the risks of tax evasion in Ukraine have decreased due to the reduction of the tax burden on business; the administration of taxes and contributions has become more efficient, which reduces the risks of tax evasion. These indicators affected the amount of tax revenues and relative indicators of the tax burden. Tax revenues (% of GDP) in Ukraine increased by 2.27% of GDP. This means that the efficiency of tax revenue administration has improved, which has a positive effect on the level of tax security. As a result, the tax system has become more transparent.

Die deutsche Steuerbelastung im internationalen Vergleich: Warum Deutschland (k)eine Steuerreform braucht

2001 ◽  
Vol 2 (1) ◽  
pp. 45-60 ◽  
Author(s):  
Frank Ernst-Moritz-Arndt ◽  
Carsten Schmidt
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
German Economy ◽  
Tax Burden ◽  
Tax Rates ◽  
Capital Taxation ◽  
Tax System ◽  
Corporate Capital ◽  
Run Up ◽  
Industrialised Countries

Abstract This paper attacks the widespread view that the latest (corporate) income tax reform in Germany was urgently needed to reduce the tax burden on the German economy. In the run-up to this tax reform, the public debate focused on nominal income tax rates and hence neglected the determination of the tax base. Empirical results on effective tax burdens in OECD countries show that a reform of German (corporate) capital taxation cannot be justified on the grounds of the tax burden. The international comparison of effective average tax rates shows that the corporate tax burden in Germany steadily declined from 1980 and was in 1996 lower than in most other industrialised countries. However, we argue that not only the actual tax burden but also the complexity of a tax system determines its international competitiveness. A German tax reform was - and still is - necessary due to the lasting complexity of the tax system and the relatively high tax burden on labour.

scholarly journals Main impact of tax reform in Chile

2019 ◽  
pp. 21-36
Author(s):  
Oscar Alfredo Rojas Carrasco ◽  
Fernando Alejandro Herrera Ciudad ◽  
Albino Enzon González González
Keyword(s):  
Educational Reform ◽  
Tax Evasion ◽  
Income Tax ◽  
Social Protection ◽  
Tax Reform ◽  
Tax Burden ◽  
Tax Structure ◽  
Tax System ◽  
Efficient Mechanisms ◽  
Distribution Of Income

The purpose of this study is to analyze the tax reform and the tax change of the income tax, given that any reform to a tax system brings about distributional effects in society. Within the agenda of the newly assumed government, is tax reform as a measure to increase tax revenues, which aims to achieve, according to the draft law, four objectives: Increase the tax burden to finance, with permanent income, the ongoing expenses of the educational reform which is to be taken, other policies in the field of social protection and the current structural deficit in the fiscal accounts, Advance Equidad Tributaria, improving the distribution of income, introduce new and more efficient mechanisms of incentives for savings and investment, Ensure that it is paid as appropriate in accordance with the laws, progress in measures to reduce tax evasion and avoidance. The collection goal of all the measures of the Tax Reform will be 3% of GDP. This goal is decomposed into 2.5% of GDP from changes in the tax structure and 0.5% of GDP from measures that reduce evasion and avoidance, the estimated figure to be collected is US $ 8,200,000,000.

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