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.

scholarly journals The Structure of the Tax System Versus the Level of Taxation: An Evaluation of the 1986 Act

1992 ◽  
Vol 6 (1) ◽  
pp. 59-68 ◽  
Author(s):  
J. Gregory Ballentine
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Tax Reform ◽  
High Income ◽  
Tax Structure ◽  
Corporate Tax ◽  
Policy Goal ◽  
Tax System ◽  
System Versus ◽  
The Future

In this paper, I assess the 1986 Tax Reform Act relative to the tax system that might have evolved over the several years following 1986 had that particular tax reform not been enacted. Had tax reform not been enacted, I believe that the pattern of steady tax increases, particularly corporate tax increases and tax increases on high-income individuals such as occurred in the 1982 and 1984 tax acts would have continued. I also believe that the 1986 Tax Reform Act introduced an income tax system that will be quite stable; broad changes, in particular changes that raise a large amount of income tax revenues, are unlikely for many years. So I am comparing the tax structure of the 1986 Tax Reform Act to a system that, in part, has an inferior structure, but that provides more revenues. Since I believe that the most important tax policy goal in 1986 and later should have been to raise revenues, not to revise the structure of the tax system, I believe that the 1986 Tax Reform Act was harmful. Tax reform not only did not raise revenues, it has made it more difficult to raise revenues in the future, without providing significant offsetting benefits.

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.

Preferences, Tax Structure and Tax Reform: Theory and Evidence

1975 ◽  
Vol 3 (1) ◽  
pp. 56-69 ◽  
Author(s):  
Shlomo Maital
Keyword(s):  
Tax Reform ◽  
Tax Structure ◽  
Indirect Taxation ◽  
Tax System ◽  
The Past ◽  
Pure Public Good ◽  
Indirect Taxes ◽  
Current Shift ◽  
Optimal Tax Structure ◽  
The U.S

When the structure of tax revenues–the proportion of revenues earned by income, consumption and wealth taxes–is treated as a pure public good, a useful framework emerges for analyzing interrelationships among taxpayers' preferences, tax structure and tax reform. The “optimal” tax structure is defined and used to outline several conjectures about the current shift from direct to indirect taxation, evident particularly in Europe. Attention is then focused on the U.S. tax system. The structure of the tax system is shown to have changed very little in the past two decades. In contrast, interview surveys carried out over the past thirty years indicated a long-standing shift in taxpayers' preferences toward indirect taxes. Implications are drawn regarding tax reform.

scholarly journals Does the Tax System Reduce Tax Evasion in Light of the Governance Mechanisms? Evidence From Jordan

2021 ◽  
Vol 12 (2) ◽  
pp. 99
Author(s):  
Ashraf Bataineh
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Social Impact ◽  
Positive Impact ◽  
Governance Mechanisms ◽  
Official Statistics ◽  
Tax System ◽  
Study Results ◽  
The Impact ◽  
Awareness Level

This study aims to measure the impact of tax system elements on reducing the tax evasion, in light of the governance mechanisms in Jordan. The study sample consists of (140) tax auditors at the Jordanian Income tax and sales department, and to achieve the study objectives the researcher designed a questionnaire and distributed it on the study sample members. Study results show that elements of the tax system (tax legislations, tax administration, and Taxpayer) have a positive impact on reducing the tax evasion, in light of governance mechanisms. study recommends the need to raise the tax awareness level among members of the Taxpayer, work to reduce the continuation of making adjustments on tax laws and legislation, and give a sufficient period of time to ensure that desired economic and social impact being achieved from these adjustments, with the need to announce the official statistics of tax evasion’s figures and ratios, because the unofficial statistics on tax evasion have been tarnished by some exaggeration where work should concentrate on increasing penalties of tax evaders.

scholarly journals Opportunities for Simplification in the Personal Income Tax Systems of the Visegrad Countries

2020 ◽  
Vol 65 (4) ◽  
pp. 531-553
Author(s):  
Éva Bonifert Szabóné
Keyword(s):  
Income Tax ◽  
Policy Instruments ◽  
Degree Of Approximation ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
It Use ◽  
Tax System ◽  
Tax Systems ◽  
The Impact

Due to the numerous factors that can influence the impact of the tax system and redistribution, there is no single correct answer to the question of which composition of economic policy instruments needs to be applied to achieve a desired redistributive effect. The general aim of the study is to investigate in relation to the quantifiable parameters of income tax systems, whether the consideration of the aspects of fairness and justice does have an excessively negative effect on the simplicity of tax systems. The study investigates the possibilities of simplifying the personal income tax system’s composition in some Central and Eastern European countries, while tax burden curves of the system remain as constant as possible. To this end, the study sets up a theoretical, simplified tax model, the parameters of which are determined by a computer program, in order to generate tax burden curves corresponding most closely to the curves of the real tax system. Based on the analysis, it can be established that the theoretical system – in some cases with restrictions – provides a good approximation to the tax burden curves of the investigated countries. The chosen simple model has a good degree of approximation to a real system that does not have significant breakpoints in its tax burden curves, nor does it use a taxation method that fundamentally modifies the system (e.g., splitting). Practical examples help to understand that a complex personal income tax system in a given country is not necessarily the only possible solution to achieve a given tax burden curve, the function may be reproduced with a good approximation constructed from simpler basic elements.

Une typologie des contribuables travailleurs indépendants basée sur les attitudes motivationnelles

2015 ◽  
Vol 55 (1) ◽  
pp. 60-77
Author(s):  
Herbert Schwarzenberger ◽  
Stephan Muehlbacher ◽  
Cécile Bazart ◽  
Lucas Unger ◽  
Erich Kirchler
Keyword(s):  
Cluster Analysis ◽  
High Resistance ◽  
Tax Evasion ◽  
Representative Sample ◽  
Tax Compliance ◽  
Tax Burden ◽  
Negative Attitudes ◽  
Tax System ◽  
Do So

A representative sample of 471 Austrian self-employed taxpayers was investigated and types of taxpayers selected on the basis of their motivational postures were extracted. By means of a cluster analysis four basic clusters of taxpayers were identified. ‘Solidary’ taxpayers pay their taxes because they perceive the tax system as fair. ‘Non-solidary’ taxpayers experience their tax burden as unfair. ‘Critical’ taxpayers feel unfairly treated and show high resistance but do not necessarily react by evading taxes. ‘Strategic’ taxpayers feel fairly treated but still try to reduce their tax burden if they perceive the opportunity to do so. The results show that positive and negative attitudes, respectively, to taxes do not necessarily lead to tax compliance or tax evasion. Cooperative and uncooperative behaviour originates from different motives.

Tax Expenditures and the Tax Reform Act of 1969 in the United States

2022 ◽  
pp. 1-26
Author(s):  
Seiichiro Mozumi
Keyword(s):  
United States ◽  
Income Tax ◽  
Public Perception ◽  
Tax Reform ◽  
The United States ◽  
Tax Revenue ◽  
Tax System ◽  
Federal Income Tax ◽  
Federal Taxation ◽  
The Government

Abstract In the United States, tax favoritism—an approach that has weakened the extractive capacity of the federal government by providing tax loopholes and preferences for taxpayers—has remained since the 1930s. It has consumed the amount of tax revenue the government can spend and therefore weakened the possibility of the redistribution of fiscal resources. It has also made the federal tax system complicated and inequitable, resulting in undermining taxpayer consent. Therefore, since the 1930s, a tax reform to create a simple, fair, and equitable federal income tax system with the capacity to raise revenue has been long overdue. Many scholars have evaluated the Tax Reform Act of 1969 (TRA69), which Richard M. Nixon signed into law on December 30, 1969, as one of the most successful steps toward accomplishing this goal. This article demonstrates that TRA69 left tax favoritism in the United States. Furthermore, it points out that TRA69 turned taxpayers against the idea of federal taxation, a shift in public perception that greatly impacted tax reform in the years to follow.

Taxes

2020 ◽  
pp. 146-163
Author(s):  
Kenneth P. Miller
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
The State ◽  
Personal Income ◽  
Tax Burden ◽  
Government Programs ◽  
Tax System ◽  
Revenue Source ◽  
Adequate Funding ◽  
State Tax

This chapter places Texas and California on the national spectrum of state tax policy and shows how they occupy opposite poles. Texas has maintained a low overall tax burden and is one of a small number of states that has steadfastly refused to adopt an income tax. Advocates of the Texas tax system argue that it protects personal freedom, promotes economic growth, and provides the state a crucial advantage in attracting new residents and businesses. Critics say the system is regressive and fails to produce adequate funding for government programs. By comparison, California has embraced a far higher tax burden and a progressive tax structure. Its largest revenue source, the personal income tax, is the highest in the nation. Advocates say California’s tax system generates needed funding for government programs and appropriately shifts the tax burden to those most able to pay, while critics say these taxes are excessive and help drive residents and businesses out of the state.

scholarly journals Income Taxation in U.S.: Current Trends

2020 ◽  
Vol 87 (4) ◽  
pp. 107-116
Author(s):  
N. B. Frolovа
Keyword(s):  
Economic Theory ◽  
Tax Policy ◽  
Income Tax ◽  
Tax Reform ◽  
High Income ◽  
Income Taxation ◽  
Tax Burden ◽  
Taxable Income ◽  
Essential Components ◽  
Trickle Down

Essential components of D. Trump’s tax reform and its impact on the income distribution and economic growth in U.S. are investigated. The analysis covers innovations in the system of income taxation of citizens (tax rate on income of physical persons, change in the composition of itemized and standard deductions from the taxable income, the alternative minimum income tax, limitations on the inheritance tax, and change in the mode of taxation of pass-through income). The essence of the trickle-down economic theory is explicated, with emphasizing its central role in tax policy development in the USA, which caused occurrence of common features specific to tax reforms over the last 40 years. The considerable attention is paid in this context to the experience of tax reform introduced by R. Reagan (1986); its comparative analysis with the tax reform of D. Trump shows that with respect to income taxation both are intended to provide incentives to business and reduce tax burden on the high income population strata. However, assessment of Reagan’s tax reform consequences shows that concentration of capital at the hands of businesses and high income population strata not only failed to increase employment and income, but aggravated the social and economic problems in the country, caused by revenue reduction in the American budget, the growing public debt and the enhanced social inequality in the American society. This gave experts grounds to expect an occurrence of the analogous scenario in the result of D. Trump’s tax reform. The article gives a series of short-term and medium-term projected estimates of international experts for budget losses and change in the structure of the population (household) income in US. Innovations in the system of income taxation of U.S. citizens are investigated by the results of analysis of legal norms concerning changes in the scale of tax rates and in the system of deductions from the taxable income. A number of critical comments are given about the income tax policy, based on summing up strong and weak points of the trickle-down economic theory. The most essential of them is that the policy granting more beneficial tax preferences to the well-off population strata, with their negative effects for the vertical justice of the tax burden distribution, contradicts to the ability-to-pay tax principle. Recommendations on potential testing of selected innovations on line of the taxation reform in Ukraine are given using results of the analysis.

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.

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