scholarly journals Taxation with Mobile High-Income Agents: Experimental Evidence on Tax Compliance and Equity Perceptions

Games ◽  
2019 ◽  
Vol 10 (4) ◽  
pp. 42
Author(s):  
Sandro Casal ◽  
Veronika Grimm ◽  
Simeon Schächtele
Keyword(s):  
Low Income ◽  
Tax Compliance ◽  
High Income ◽  
Random Allocation ◽  
Allocation Mechanism ◽  
Treatment Variation ◽  
Regressive Tax ◽  
Compliance Decisions ◽  
Information Treatment ◽  
Income Taxpayers

In a laboratory experiment on tax compliance, we model a situation in which high-income taxpayers can leave a tax system that finances a public good. We compare low-income taxpayers’ compliance decisions and equity perceptions across treatments in which they are informed or not informed about the mobility option of high-income taxpayers. This allows us to test if low-income taxpayers regard the mobility option as a rationale for implementing a regressive tax schedule. To investigate if a potential `justification effect’ of the mobility option depends on the causes of income heterogeneity, we also varied whether income was allocated based on relative performance in a prior ability task or at random. Interestingly, although the performance-based allocation itself was judged to be fairer, we observed higher compliance under the random allocation mechanism. However, compliance and equity perceptions did not significantly differ by the information treatment variation, regardless of the source of income inequality. The results indicate that the threat of losing high-income taxpayers’ contributions does not lead low-income taxpayers to view the regressive tax schedule more favorably. This suggests that taking the differential mobility options as given and altering tax schedules accordingly may not be perceived as an adequate policy response.

scholarly journals Assessing the Equity and Redistributive Effects of Taxation Reforms in Nigeria

2021 ◽  
Author(s):  
Henry C. Edeh
Keyword(s):  
Low Income ◽  
Large Scale ◽  
Value Added ◽  
High Income ◽  
Living Standard ◽  
Middle Income ◽  
Variable Part ◽  
Lump Sum ◽  
Redistributive Effects ◽  
Income Taxpayers

Achieving the Sustainable Development Goals (SDGs) of poverty and inequality reduction through redistribution have indeed become critical concerns in many low- and middle-income countries, including Nigeria. Although redistribution results from the effect of tax revenue collections, micro household-level empirical analyses of the distributional effect of personal income tax (PIT) and value added tax (VAT) reforms in Nigeria have been scarcely carried out. This study for the first time quantitatively assessed both the equity and redistributive effects of PIT and VAT across different reform scenarios in Nigeria. Data used in this study was mainly drawn from the most recent large scale nationally representative Nigeria Living Standard Survey, conducted in 2018/2019. The Kakwani Index was used to calculate and compare the progressivity of PIT and VAT reforms. A simple static micro-simulation model was employed in assessing the redistributive effect of PIT and VAT reforms in the country. After informality has been accounted for, the PIT was found to be progressive in the pre- 2011 tax scheme, but turned regressive in the post-2011 tax scheme. It was also discovered that the newly introduced lump sum relief allowance in the post-2011 PIT scheme accrues more to the high-income than to the low-income taxpayers – confirming the regressivity of the current PIT scheme. However, the study further shows (through counterfactual simulations) that excluding the relatively high-income taxpayers from sharing in the variable part of the lump sum relief allowance makes PIT progressive in the post-2011 scheme. The VAT was uncovered to be regressive both in the pre-2020 scheme, and in the current VAT reform scheme. Further, after putting informality into consideration, the PIT was found to marginally reduce inequality but increase poverty in the pre-2011 scheme. The post-2011 PIT scheme reduced inequality and increased poverty, but by a smaller proportion – confirming a limited redistribution mainly resulting from the concentration of the lump sum relief allowance at the top of the distribution. However, if the variable part of the lump sum relief allowance is provided for ‘only’ the low-income taxpayers below a predefined income threshold, the post-2011 PIT scheme becomes largely redistributive. VAT was uncovered to marginally increase inequality and poverty in the pre-2020 scheme. Though the current VAT scheme slightly increased inequality, it considerably increased poverty in the country. It is therefore suggested that a better tax reform, with well-regulated relief allowance and differentiated VAT rates, will help to enhance the equity and redistribution capacity of the Nigeria tax system.

scholarly journals Does tax competition make tax reform essential?

2014 ◽  
Vol 4 (2-3) ◽  
Author(s):  
Maja Klun
Keyword(s):  
Low Income ◽  
Tax Competition ◽  
Tax Policy ◽  
Tax Reform ◽  
Foreign Capital ◽  
High Income ◽  
Tax Burden ◽  
Policy Measures ◽  
National Economies ◽  
Income Taxpayers

Tax competition is generally defined as competition between national economies to increase their competitiveness and attract foreign investment by means of tax policy. Tax policy measures that tax mobile or foreign capital at significantly lower rates are known as harmful tax competition. Some recent corrections to the tax code and proposed tax amendments in Slovenia represent an attempt to relieve the burden on the taxpayer. This paper compares the taxation of high income taxpayers, low income taxpayers, taxpayers with passive income, and the taxation of businesses in Slovenia and neighbouring countries. The comparison indicates that Slovenian taxpayers with a high income have a higher tax burden than in neighbouring countries, while low income taxpayers have one of the highest burdens. The same applies to passive income. The tax burden on businesses ranks in the middle.

scholarly journals THE CASE FOR OVER-WITHHOLDING FEDERAL INCOME TAX: BENEFITS TO LOW-INCOME TAXPAYERS

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Susannah Kroeber
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Compliance ◽  
Single Source ◽  
Multiple Sources ◽  
Marginal Rate ◽  
Federal Income Tax ◽  
Tax Benefits ◽  
The Government ◽  
Income Taxpayers

The W-4 tax withholding form has been used by individual taxpayers for decades to calculate their tax withholdings. It is based, however, on the faulty assumption that most U.S. workers have a single source of income. This assumption has caused millions of taxpayers to incur unnecessary tax debt. The formula for calculating federal income tax withholding for employees routinely under-withholds for low-income workers who have multiple sources of income because, without substantial documentation and calculation by the employee, employers withhold as if they are the employee’s single source of income. Taxpayers may therefore see their income tax withheld at too low a marginal rate, oftentimes zero percent, and can have significant balances due on short notice at the end of the tax year.This Note documents that reality and proposes a solution. It proposes a reconception of the Form W-4 and the withholding formula through the lens of low-income filers and aims for a policy of over-withholding from those filers in order to reduce surprise tax due and related penalties. The proposed solution removes the bias towards achieving a “zero refund” from the form design by eliminating the tax-free threshold—for most filers, the equivalent of their standard deduction—from the withholding scheme. As discussed in the Note, the proposed policy would also have the benefit of increasing tax compliance, minimizing bureaucratic burdens, and providing a revenue-neutral solution for the government. This Note further suggests an extension of the proposed policy to provide a much-needed savings mechanism for low-income filers.

SATUAN TIMBULAN DAN KOMPOSISI SAMPAH DOMESTIK KABUPATEN TANAH DATAR

Jurnal Dampak ◽  
2014 ◽  
Vol 11 (1) ◽  
pp. 28 ◽  
Author(s):  
Yommi Dewilda ◽  
Yeggi Darnas
Keyword(s):  
Low Income ◽  
High Income ◽  
Income Data

Penelitian ini bertujuan untuk mendapatkan data timbulan dan komposisi sampah domestik di Kabupaten Tanah Datar serta dapat membandingkan perbedaan timbulan dan komposisi sampah yang dihasilkan berdasarkan tingkat pendapatan masyarakat (High income, Medium income dan Low income). Data timbulan dan komposisi sampah diperlukan dalam perencanaan dan pengembangan sistem pengelolaan sampah. Sampling timbulan dan jumlah sampling dilakukan berdasarkan SNI 19-3964-1994. Hasil penelitian timbulan sampah domestik dalam satuan berat 0,232 kg/o/h dan dalam satuan volume 3,646 l/o/h. Berdasarkan tingkat pendapatan dalam satuan berat High Income (HI) 0,308 kg/o/h, Medium Income (MI) 0,198 kg/o/h dan Low Income (LI) 0,190 kg/o/h dalam satuan volume HI 4,269 l/o/h, MI 3,835 l/o/h dan LI 2,835 l/o/h. Timbulan sampah yang dihasilkan penduduk dengan High Incame lebih besar dibandingkan dengan penduduk dengan pendapatan Medium Income dan Low Income. Komposisi sampah domestik untuk sampah basah 75,5%; sampah plastik 16,6%; sampah kertas 5,3%; sampah tekstil 0,8%; sampah kayu 0,3%; sampah kaca 0,7%; sampah logam ferrous 0,2%; sampah logam non ferrous 0,1%; dan sampah lain-lain 0,5%.Kata kunci: sampah domestik, komposisi sampah, timbulan Sampah

scholarly journals Socioeconomic Disparities in Foods/Beverages and Nutrients Consumed by U.S. Adolescents When Snacking: National Health and Nutrition Examination Survey 2005–2018

Nutrients ◽  
2021 ◽  
Vol 13 (8) ◽  
pp. 2530
Author(s):  
Navika Gangrade ◽  
Janet Figueroa ◽  
Tashara M. Leak
Keyword(s):  
National Health ◽  
Low Socioeconomic Status ◽  
Low Income ◽  
High Income ◽  
Future Research ◽  
Nutrition Examination Survey ◽  
Middle Income ◽  
Low Socioeconomic ◽  
Health And Nutrition ◽  
Income Ratio

Snacking contributes a significant portion of adolescents’ daily energy intake and is associated with poor overall diet and increased body mass index. Adolescents from low socioeconomic status (SES) households have poorer snacking behaviors than their higher-SES counterparts. However, it is unclear if the types of food/beverages and nutrients consumed during snacking differ by SES among adolescents. Therefore, this study examines SES disparities in the aforementioned snacking characteristics by analyzing the data of 7132 adolescents (12–19 years) from the National Health and Nutrition Examination Survey 2005–2018. Results reveal that adolescents from low-income households (poverty-to-income ratio (PIR) ≤ 1.3) have lower odds of consuming the food/beverage categories “Milk and Dairy” (aOR: 0.74; 95% CI: 0.58-0.95; p = 0.007) and “Fruits” (aOR: 0.62, 95% CI: 0.50–0.78; p = 0.001) as snacks and higher odds of consuming “Beverages” (aOR: 1.45; 95% CI: 1.19-1.76; p = 0.001) compared to those from high-income households (PIR > 3.5). Additionally, adolescents from low- and middle-income (PIR > 1.3–3.5) households consume more added sugar (7.98 and 7.78 g vs. 6.66 g; p = 0.012, p = 0.026) and less fiber (0.78 and 0.77 g vs. 0.84 g; p = 0.044, p = 0.019) from snacks compared to their high-income counterparts. Future research is necessary to understand factors that influence snacking among adolescents, and interventions are needed, especially for adolescents from low-SES communities.

scholarly journals Vertical position can affect categorization of the rich and the poor in Chinese culture

2021 ◽  
Vol 15 ◽  
pp. 183449092110257
Author(s):  
Qiong Li ◽  
Chen Deng ◽  
Bin Zuo ◽  
Xiaobin Zhang
Keyword(s):  
Low Income ◽  
Chinese Culture ◽  
Social Categorization ◽  
High Income ◽  
Vertical Position ◽  
The Poor ◽  
The Social ◽  
The Rich

This study explored whether vertical position affects social categorization of the rich and the poor. Experiment 1 used high- and low-income occupations as stimuli, and found participants categorized high-income occupations faster when they were presented in the top vertical position compared to the bottom vertical position. In Experiment 2, participants responded using either the “up” or “down” key to categorize high- and low-income occupations, and responded faster to high-income occupations with the “up” key and low-income occupations with the “down” key. In Experiment 3, names identified as belonging to either rich or poor individuals were presented at the top or bottom of a screen, and the results were the same as in Experiments 1 and 2. These findings suggest that social categorization based on wealth involved perceptual simulations of vertical position, and that vertical position affects the social categorization of the rich and the poor.

scholarly journals Household willingness to adopt a single-stage solar-supported hyper-thermophilic anaerobic biogas digester in Ghana

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Isaac Mbir Bryant ◽  
Abdul-Rahaman Afitiri
Keyword(s):  
Low Income ◽  
Interactive Effect ◽  
Clean Energy ◽  
Simple Random Sampling ◽  
High Income ◽  
Single Stage ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Quality Life ◽  
Willingness To Adopt

Abstract Background Sustainability of energy is key for quality life; thus, the use of clean energy at the household level warrants moving from fossil-based energy to modern forms like biogas. However, the joint interactive effect of household income, biogas usage and willingness to adopt a single-stage solar-supported hyper-thermophilic anaerobic biogas digester (SSHTABD) is not known. Methods A cross-sectional survey was carried out to assess the willingness of residents of Elmina to adopt the SSHTABD. Stratified and simple random sampling techniques were used to select 219 respondents fitted into a complementary log–log regression model. Results Household willingness to adopt the SSHTABD was 86%. Among them are households not willing to use biogas but have high income and households willing to use biogas but have either low or high income are more likely to adopt the technology compared to households not willing to use biogas and have low income. Households not willing to use biogas, but have high income (OR = 1.725, confidence interval [CI] 0.803–3.706) and households willing to use biogas, but have low income (OR = 1.877, CI 1.103–3.188) compared to households willing to use biogas and have high income (OR = 1.725, CI 1.080–3.451) are more likely to adopt the technology as households not willing to use biogas and have low income. Additionally, households employed under the formal government sector, formal and informal private sectors are 40%, 136% and 103%, respectively, more likely to adopt the technology than those unemployed. Conclusion The high willingness of households to adopt the technology calls for government to support households to own biogas digesters thus requires policy interventions and interdisciplinary research.

Evaluation of a Promotional Strategy to Increase Bicycle Helmet Use by Children

PEDIATRICS ◽  
1993 ◽  
Vol 91 (4) ◽  
pp. 772-777
Author(s):  
Patricia C. Parkin ◽  
Laura J. Spence ◽  
Xiaohan Hu ◽  
Katherine E. Kranz ◽  
Linda G. Shortt ◽  
...  
Keyword(s):  
Low Income ◽  
Head Injuries ◽  
Control Area ◽  
High Income ◽  
Bicycle Helmet ◽  
Helmet Use ◽  
Modest Increase ◽  
Promotional Strategy ◽  
Intervention Area ◽  
Low Income Families

Bicycle-related head injuries are an important cause of death and disability, despite the availability of helmets. The objective of this study was to evaluate the effectiveness of a school-based bicycle helmet promotion program in increasing helmet use by children while controlling for secular trends. Two high-income and two low-income schools in an urban Canadian community were selected to receive a bicycle helmet promotion intervention, with the remaining 18 schools serving as controls. Approximately 1800 observations of bicycling children were made at randomly selected observational sites 2 to 5 months after the intervention to assess changes in behavior. Helmet use at all observation sites tripled from 3.4% (1990, preintervention) to 16% (1991, postintervention). In the high-income intervention area, observed helmet use rose dramatically from 4% to 36% in contrast to the more modest increase in the high-income control area from 4% to 15%. In the low-income intervention area, there was a modest increase from 1% to 7%, but it did not differ from the increase in the low-income control area from 3% to 13%. The program was highly successful in children of high-income families but not in children of low-income families. Developing strategies for low-income families remains a priority.

scholarly journals The Effects of Choice on Reading Engagement and Comprehension for Second- and Third-Grade Students: An Action Research Report

2017 ◽  
Vol 3 (2) ◽  
pp. 19-38
Author(s):  
Julie Fraumeni-Mcbride
Keyword(s):  
Reading Comprehension ◽  
Action Research ◽  
School Performance ◽  
Low Income ◽  
High Income ◽  
Reading Engagement ◽  
Third Grade ◽  
Research Report ◽  
School Students ◽  
Third Grade Students

Poor literacy rates contribute to low school performance for children across America. In particular, low-income schools continue to struggle with declining literacy rates. Issues with literacy are often attributed to lack of reading comprehension. This study tested the effects of choice on reading comprehension in second- and third-grade students at a high-income school and a low-income school. Students were observed while reading silently and aloud to see if either method affected reading comprehension. Data were collected from 32 students before, during, and after reading to determine whether students’ comprehension levels were higher when given opportunities to choose their own books or when they read assigned books. Trials were performed while students read silently and then aloud. Results indicated that students had higher comprehension levels both when they could choose their own books and when they read silently.

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