scholarly journals The Possible Effects of Personal Income Tax and Value Added Tax on Consumer Behaviors

2018 ◽  
Vol 1 (1) ◽  
pp. 49-58
Author(s):  
Ahmet AK ◽  
Öner Gümüs
Keyword(s):  
Economic Theory ◽  
Behavioral Economics ◽  
Income Tax ◽  
Real Life ◽  
Value Added ◽  
Personal Income ◽  
Personal Income Tax ◽  
Value Added Tax ◽  
Consumer Behaviors ◽  
The People

In economics literature, it is accepted that all people are rational and they try to maximize their utilities as possible as they can. In addition, economic theories are formed with the assumptions not suitable to real life. For instance, indifference curves are drawn with the assumptions that there are two goods, people are rational, more is preferred to less and so on. Hence, the consumer behaviors are guessed according to this analysis. Nevertheless, these are invalid in real life. And this inconsistencey are examined by behavioral economics and neuroeconomics. Behavioral economics claims that people can behave what they are not expected since people can be irrational, their willpower is limited and altruistic behaviors can be seen and they can give more value to what they own. As a result of these, consumer behaviors become more different than that of economic theory. In addition to behavioral economics, neuroeconomics also examines consumer behaviors more differently than mainstream economic theory. It emphasizes the people using prefrontial cortex of the brain are more rational than the people using hippocampus of the brain. Therefore, people can make illogical choices compared to economic theory. In these cases, levying taxes such as personal income tax or value added tax can be ineffective or effective. In other words, the effect becomes ambiguous. Hence,the hypothesis that if government desires to levy personal income tax or value added tax, it makes a detailed research in terms of productivity of taxes forms the fundamental of this study.

Zasady opodatkowania dochodów i obrotów ze sprzedaży produktów wytwarzanych w gospodarstwach rolnych

2021 ◽  
Vol 1 (69) ◽  
pp. 189-215
Author(s):  
Jacek Kulicki
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Agricultural Activity ◽  
Personal Income Tax ◽  
Value Added Tax ◽  
Excise Tax ◽  
Agricultural Income

The analysis of the applicable regulations leads to the conclusion that the system of taxation of farmers’ income is complex. The author points out different definitions of agricultural activity for the purposes of income tax and value added tax. The legislator makes the classification of agricultural income among individual sources of income for the purposes of personal income tax dependent on whether they are processed or unprocessed products and on the method of their processing. The differences in the treatment of farmers’ revenues for the purposes of income tax overlap with the tax obligations with regard to value added tax and excise tax.

scholarly journals A Longitudinal Assessment of Tax Reforms and National Income in Nigeria: 1971-2014

2016 ◽  
Vol 8 (8) ◽  
pp. 43
Author(s):  
Innocent Augustine Nwaorgu ◽  
Wilson E. Herbert ◽  
Francis Onyilo
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Growth Rates ◽  
Income Tax ◽  
National Income ◽  
Value Added ◽  
Personal Income ◽  
Personal Income Tax ◽  
Value Added Tax ◽  
Tax Reforms

<p>This study assesses the impact of tax reforms on Nigeria’s national income over the period, 1971 to 2014. Using a variety of growth indicators signifying tax reforms, our regression model specified growth rate of national income (proxied by GDP) as a function of growth rates in these indicators. Diagnostic tests (F-statistics, Adjusted R-Square and Durbin-Watson) were carried out to ascertain the robustness of the parameter estimates. We found that tax reforms significantly improved national income and economic growth during the period of study, especially growth rates of value added tax and personal income tax. Our results show that growth rate of personal income tax has a positive significant effect on the national income and economic growth, while that of value added tax has a negative significant effect on growth of national income. The growth components of company income tax and petroleum profit tax are positive but not statistically significant. On the other hand, reforms in custom and excise duties were found to yield negative and statistically non-significant effect. The leading conclusions from these findings are: (1) strategic tax reforms significantly influence the behaviour of national income and GDP; (2) tax policy significantly fosters the growth of national income; and (3) policy makers, especially Ministry of Finance and Federal Inland Revenue Service and their state counterparts, should give requisite attention to tax policy issues, in the light of their obvious implications on growth of the national income and economic development.</p>

scholarly journals Tax Literacy

2018 ◽  
Vol 66 (2) ◽  
pp. 553-559
Author(s):  
Michaela Moučková ◽  
Leoš Vítek
Keyword(s):  
Income Tax ◽  
Response Rate ◽  
Statistical Tests ◽  
Value Added ◽  
Practical Experience ◽  
Personal Income ◽  
Personal Income Tax ◽  
Two Factors ◽  
Tax Returns ◽  
The University

Presented paper focuses on measuring tax literacy among bachelor degree students at the University of Economics, Prague, along with analysis of the two factors that influence it. Based on the 150 collected questionnaires (63 % response rate), we measured tax literacy of students (personal income tax and VAT) and examined whether it depends on (i) previous passing of tax courses and (ii) previous practical experience with filing tax returns. More than half of the students were well to excellently-versed in tax matters, including those who have not completed any more advanced tax courses apart from the elementary tax course. For VAT, the results of statistical tests show that students’ knowledge depends on passing a more advanced course on consumption taxation. On the other hand, the link between experience with tax returns and results of tax literacy tests cannot be unambiguously confirmed or rejected. Within the first statistical test (personal income tax), it was established that students’ knowledge does not depend on previous filing of tax returns; the second test (value added tax) led to the opposite conclusion.

scholarly journals Personal Income Taxation in Poland

Ekonomika ◽  
2008 ◽  
Vol 84 ◽  
Author(s):  
Edyta Małecka-Zieńska
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
The One ◽  
Taxation System

The Polish taxation system has been undergoing substantial changes in recent years, aimed at creating a more transparent system and conforming to the taxation standards of market economy countries. The two most important changes were introduction of the personal income tax (PIT) in 1992 and replacement of the turnover tax with the value added tax (VAT) in 1993. The uniform personal income tax covered all incomes generated by natural persons irrespective of where the sources of income are located. The reform provided also a more equitable distribution of the tax burden by introducing a progressive system with three nominal tax rates (in 1992-20%, 30%, 40%).A comparative study of the effective PIT rate for pensioners and other groups of PIT payers is the main goal of this paper. The study refers to our own research on data received from The information of Polish Ministry of Finance about accounting of PIT in several subsequent years. Statistics cover a period from 1993 to 2003. However, numbers of taxpayers refer also to year 1992 when the PIT has been established and a period from 2004 to 2006.Concluding the situation in Poland, taxpayers with the highest income make exhaustive use of tax reductions. There are occurring situations when well-off people benefit more than people with relatively minor income (e. g. pensioners). It happens even if most of deductions were aimed generally at all taxpayers. Such a situation reduces the impression of the system fairness. Because tax deductions reduce budgetary revenues, the foregone revenues have to be compensated by other taxes or / and higher rates. Therefore, the system of deductions and relief, on the one hand, supports the special gains (e. g. house building), however, on the other it generates costs. It is possible that the reduction of tax rate for the I tax bracket and removal of some tax exemptions and deductions would make the Polish personal income tax more transparent, equal and simple.

scholarly journals The Future of the Progressive Personal Income Tax: How High Can It Go?

2019 ◽  
pp. 693-710
Author(s):  
Kevin Milligan
Keyword(s):  
Economic Theory ◽  
Income Tax ◽  
High Income ◽  
Personal Income ◽  
Personal Income Tax ◽  
Skilled Workers ◽  
Tax Rate ◽  
Behavioural Responses ◽  
The Future ◽  
Upper Boundary

The author draws on economic theory and evidence to build the case for considering boundaries for the high-income tax rate. Because of behavioural responses to higher rates, an upper boundary arises; above it, the revenue loss from behavioural responses outweighs the revenue gain from the higher rate. However, this upper boundary can be pushed upward through stronger enforcement and may vary with non-tax considerations, such as shifts in the demand for and supply of highly skilled workers. This framework suggests that if higher rates are to raise revenue in Canada, serious measures must be taken to increase the upper boundary.

scholarly journals ПРОГНОЗУВАННЯ ЕФЕКТИВНОСТІ ФІНАНСОВОЇ ПОЛІТИКИ В УМОВАХ ЗАГОСТРЕННЯ КРИЗОВИХ ЯВИЩ В ЕКОНОМІЦІ ВНАСЛІДОК ПАНДЕМІЇ COVID-19

2019 ◽  
pp. 99-112
Author(s):  
Луценко А.С.
Keyword(s):  
Regression Model ◽  
Small Businesses ◽  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Negative Consequences ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
Pessimistic Scenario ◽  
The Impact

The article substantiates that in the context of solving the problem of improving the forms and methods of fiscal influence on the economy, planning strategic directions of fiscal policy should be based on the principles of non-discredit regulation, which is achieved if changes in tax revenues and government transfers depend on GDP. To this end, a correlation-regression analysis of the impact of GDP on tax revenues to the consolidated budget, where the results of the regression model are used to forecast the revenue side of the budget in different scenarios of economic development in a pandemic. The negative influence of factors is marked: a significant drop in effective demand of the population; significant unemployment due to the return of workers, mass layoffs; mass bankruptcy of medium and small businesses; deep protracted recession; accelerating inflation. To build a regression model, two factors were selected that are considered as key factors influencing the dynamics of the revenue side: gross domestic product, consumer price index. The forecast was based on actual data for the period 2007-2019. The calculations showed that the growth rate of tax revenues to the budget of Ukraine will decrease significantly due to the impact of the crisis caused by the pandemic. In particular, under the optimistic forecast, tax revenues will increase by more than eight percent in 2020, and under the pessimistic forecast will decrease by seven percent. In 2021, the gap between the pessimistic and optimistic scenarios has narrowed significantly and according to calculations, we can expect a slight increase in tax payments by twelve percent. The level of redistribution will also decrease to about twenty-five percent. It is proved that when building a model of fiscal regulation, the impact of certain types of taxes on the revenue side of the budget, in particular, personal income tax and value added tax, should be taken into account. It is established that the crisis phenomena, accompanied by bankruptcy and closure of business entities, and hence an increase in the number of laid off employees, will lead to a decrease in budget revenues from personal income tax. The results of forecast calculations show that this source of revenue should be expected to decrease by at least ten percent, and under the pessimistic scenario - the decline in revenues from this tax in 2020 could reach twenty percent. It is determined that the negative dynamics of VAT revenues can be observed only in the pessimistic scenario, and the decrease is insignificant - about five percent. Under the optimistic scenario, revenues will increase by about twenty percent in 2020 and thirty-five percent in 2021 compared to 2019. It was found that the most «vulnerable» to the crisis caused by the COVID-19 pandemic is the article of personal income tax revenues, which, accordingly, requires the development of a certain algorithm of measures to create sufficient fiscal incentives to minimize the negative consequences.

scholarly journals Global Impacts of COVID-19 on the Financing of Local Self-Governments: Evidence from Slovak municipalities

2021 ◽  
Vol 92 ◽  
pp. 01038
Author(s):  
Viera Papcunová ◽  
Radomíra Hornyák Gregáňová
Keyword(s):  
Income Tax ◽  
Slovak Republic ◽  
Value Added ◽  
Real Data ◽  
The State ◽  
Personal Income ◽  
Personal Income Tax ◽  
State Budget ◽  
Time Period ◽  
Ministry Of Finance

Research background: Until 2004, the financing of local self-government in Slovak Republic was determined annually by the Act on the State Budget. In 2005, the whole philosophy of redistribution of funds for the level of local self-government was changed. The basis of the new system of local self-government financing was the determination of the personal income tax as an only one share tax. Purpose of the article: The income from this tax is distributed between the local self-government, the regional self-government and the state. The aim of the paper is to analyze the incomes from personal income tax redistributed to the level of local self-governments in Slovak Republic in the time period 2009 - 2019, as well as to provide a possible prediction of the development of these incomes. Methods: Basic data for the analysis were obtained from the Ministry of Finance of the Slovak Republic from the state final account. We evaluate the obtained time series by means of MS Excel and we use modelling by means of trend lines. The obtained predictions will be compared with the forecasts presented by the Ministry of Finance of the Slovak Republic. Findings & Value added: However, COVID - 19 also intervened in the predictions of the Ministry of Finance of the Slovak Republic, and therefore we will also compare our models with real data obtained from the state budget in the framework of fulfilling from personal income tax for the time period January to August 2020. Also we will evaluate the expenditures of selected EU countries for local self-government.

scholarly journals Measuring and estimating tax elasticity in the Republic of Serbia

Ekonomika ◽  
2021 ◽  
Vol 67 (1) ◽  
pp. 17-26
Author(s):  
Branimir Kalaš ◽  
Vera Mirović ◽  
Jelena Andrašić
Keyword(s):  
Social Security ◽  
Gross Domestic Product ◽  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Corporate Income Tax ◽  
Domestic Product ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
The Republic

The paper analyzes tax elasticity in the Republic of Serbia in terms of tax revenues, personal income tax, corporate income tax, value added tax, social security contributions and excises for the period 2005-2019. Tax elasticity manifest sensitivity of tax forms to a change in the gross domestic product, where results have shown that indirect taxes have higher coefficients of elasticity compared to direct taxes. Results of empirical analysis have manifested that tax revenues are elastic to a change in gross domestic product, where 1% increase in GDP makes to a change of tax revenues for 1.31%. Also, tax elasticity is the highest at corporate income tax, while revenues from value added tax and excises are also elastic in the observed period. On the other hand, personal income tax and social security contributions are inelastic to a change in the gross domestic product in the Republic of Serbia.

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