scholarly journals Toward a Comprehensive Tax Reform for Italy

2020 ◽  
Vol 20 (37) ◽  
Author(s):  
Emile Cammeraat ◽  
Ernesto Crivelli
Keyword(s):  
Substantial Reduction ◽  
Labor Income ◽  
Tax Burden ◽  
System Reform ◽  
Tax Rates ◽  
Tax Reforms ◽  
Tax System ◽  
Middle Income ◽  
Neutral Base ◽  
Comprehensive Reform

This paper evaluates elements of a comprehensive reform of the Italian tax system. Reform options are guided by the principles of reducing complexity, broadening the tax base, and lowering marginal tax rates, especially the tax burden on labor income. The revenue and distributional implications of personal income and property tax reforms are assessed with EUROMOD, while a microsimulation model is developed to evaluate VAT reform options. Simulations suggest that a substantial reduction in the tax burden on labor income can be obtained with a revenue-neutral base-broadening reform that streamlines tax expenditures and updates the property valuation system. In addition, a comprehensive reform would benefit low- and middle-income households the most, by lowering significantly their overall current tax liability, which results in increased progressivity of the tax system.

scholarly journals Transformation of the taxation system and its influence on enterprise development in the Republic of

2011 ◽  
Vol 2 ◽  
Author(s):  
Furkat Bazarov
Keyword(s):  
Economic Growth ◽  
Small Businesses ◽  
Tax Burden ◽  
Tax Rates ◽  
Enterprise Development ◽  
Tax System ◽  
The Republic ◽  
Tax Changes ◽  
Taxation System ◽  
Small Business Taxation

The research studies impacts of new tax changes to the small businesses, unemployment and to economic growth in Uzbekistan. The study shows that the tax policy directed on perfection of tax mechanisms, reduction of tax rates aimed to raise economic efficiency of manufacturing and increasing individual income. As a result from year to year the tax burden is reduced and the taxation order becomes simpler. Empirical analysis shows that only for last seven years the general tax burden in economy was reduced with 40 to 27 percent. The author found problems existing in small business taxation and generalizes recommendations for simplification of tax system and tax administration. 

scholarly journals Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium

Econometrica ◽  
2020 ◽  
Vol 88 (2) ◽  
pp. 469-493 ◽  
Author(s):  
Dominik Sachs ◽  
Aleh Tsyvinski ◽  
Nicolas Werquin
Keyword(s):  
General Equilibrium ◽  
Optimal Taxation ◽  
Income Taxes ◽  
Tax Incidence ◽  
Labor Income ◽  
Tax Rates ◽  
Tax System ◽  
Marginal Tax Rates ◽  
Optimal Taxes

We study the incidence of nonlinear labor income taxes in an economy with a continuum of endogenous wages. We derive in closed form the effects of reforming nonlinearly an arbitrary tax system, by showing that this problem can be formalized as an integral equation. Our tax incidence formulas are valid both when the underlying assignment of skills to tasks is fixed or endogenous. We show qualitatively and quantitatively that contrary to conventional wisdom, if the tax system is initially suboptimal and progressive, the general‐equilibrium “trickle‐down” forces may raise the benefits of increasing the marginal tax rates on high incomes. We finally derive a parsimonious characterization of optimal taxes.

scholarly journals Entrepreneurial Taxation with Endogenous Entry

2014 ◽  
Vol 6 (2) ◽  
pp. 126-163 ◽  
Author(s):  
Florian Scheuer
Keyword(s):  
General Equilibrium ◽  
Optimal Taxation ◽  
Production Efficiency ◽  
Differential Treatment ◽  
Labor Income ◽  
Endogenous Entry ◽  
Tax Rates ◽  
Firm Formation ◽  
Tax System ◽  
Optimal Policies

I analyze the optimal taxation of profits and labor income under endogenous firm formation. Individuals differ in their skill and cost of setting up a firm, and can become workers or entrepreneurs. A tax system in which profits and labor income are subject to the same schedule uses general equilibrium effects through wages to indirectly redistribute across occupations. Optimal policies can involve low tax rates at the top and distortions of firms' input choices. However, these properties disappear under a differential treatment of profits and labor income. Then, redistribution is achieved directly through taxes and production efficiency is always optimal. (JEL H21, H24, H25, J24, L25, L26)

Top Income Shares and the Difficulties of Using Tax Data

2020 ◽  
pp. 125-152
Author(s):  
Gerald Auten ◽  
David Splinter
Keyword(s):  
Tax Rates ◽  
Social Changes ◽  
Tax Reforms ◽  
Effective Tax Rates ◽  
Tax System ◽  
Low Incomes ◽  
Top Income Shares ◽  
Tax Returns ◽  
Per Capita ◽  
Over Time

This chapter reconsiders income methods of estimating of inequality using US tax data. It presents a new approach that accounts for the effects of important social changes, tax reforms, technical tax issues, and the 40 percent of income missing from tax returns. Results suggest much smaller increases in top 1 percent shares of pre-tax income. After accounting for taxes and transfers, top 1 percent shares changed little since 1962. This resulted from substantial increases in transfers and increased overall progressivity of the tax system. While effective tax rates for the top 1 percent show little trend, they declined for the bottom 50 percent. Rather than stagnating, per capita real incomes of the bottom half of the population increased over time. Rather than increasing and capturing most economic growth, incomes of those starting at the top decreased while those starting with low incomes received most of the growth.

scholarly journals Tax Reforms and Intertemporal Shifting of Wage Income: Evidence from Danish Monthly Payroll Records

2016 ◽  
Vol 8 (3) ◽  
pp. 233-257 ◽  
Author(s):  
Claus Thustrup Kreiner ◽  
Søren Leth-Petersen ◽  
Peer Ebbesen Skov
Keyword(s):  
Tax Reform ◽  
Liquidity Constraints ◽  
Labor Income ◽  
Tax Rates ◽  
Tax Reforms ◽  
Taxable Income ◽  
Elasticity Of Taxable Income ◽  
Marginal Tax Rates ◽  
Willingness To Cooperate ◽  
Wage Income

This paper uses monthly payroll records for all Danish employees to identify widespread intertemporal shifting of labor income in response to a tax reform that significantly reduced the marginal tax rates for one-fourth of all employees. When ignoring shifting, the estimate of the overall elasticity of taxable income equals 0.1, and the elasticity is increasing with earnings. When removing the shifting component, the elasticity is close to zero at all earnings levels. The evidence also indicates that tax salience, liquidity constraints and firm willingness to cooperate in shifting are important factors in explaining shifting behavior. (JEL H24, H31, J22, J31)

scholarly journals The Impact of Globalization and International Tax Competition on Tax Policies

2020 ◽  
Vol 11 (4) ◽  
pp. 1
Author(s):  
Alla Sokolovska ◽  
Tetyana Zatonatska ◽  
Andriy Stavytskyy ◽  
Oleksii Lyulyov ◽  
Vincent Giedraitis
Keyword(s):  
Tax Competition ◽  
General Level ◽  
Tax Burden ◽  
Tax Rates ◽  
Negative Effects ◽  
Tax System ◽  
Association Agreement ◽  
International Tax Competition ◽  
International Tax ◽  
The Impact

The aim of the paper is to determine to what extent the strengthening of the transparency of the Ukrainian economy and its incorporation in international tax competition affects the tax policy of the country and the peculiarities of its tax system. In the study, the logical analysis of the direct and inverse relationship of changes in taxation with such manifestations of globalization, as the movement of capital and labor resources from Ukraine and to the country, is combined with an empirical (regression) analysis of the relationship between globalization and the main characteristics of the Ukrainian tax system. It is proved that the increase of incorporation of Ukraine in globalization processes, despite the reduction of taxes on the main factors of production, is accompanied by an increase in the general level of tax burden on the economy (tax rate). The above mentioned is a consequence of increase of other taxes, including excise, caused both by internal needs of Ukraine (conducting the policy of fiscal consolidation caused by large public debt, and increasing defense expenditures) and its international obligations (EU Association Agreement). The tax system in Ukraine is much stronger (about 25%) influenced by the general index of globalization in comparison with its subindex characterizing the economic component of globalization. Obviously, this is owing to the greater influence on taxation in Ukraine of other components of globalization such as political and social one. The results show that the growth of the globalization index is accompanied by rather expected effects such as reduction of corporate profit tax rates and personal income tax, transferring the tax burden from capital to labor and, to a greater extent, on consumption, improving business conditions in the context of tax payments, and specific increase in the general level of tax burden on the economy, significant losses of the state that is not so much from the reduction of tax rates as from the erosion of the tax base on income, which is the result of a combination of negative effects of external and internal factors; the threat of escalating the policy of low tax rates. It is recommended to the Ukrainian Government to focus increasingly on the tax evolution trends in post-socialist EU countries to strengthen Ukraine`s position in tax competition with this group of countries.

scholarly journals An Empirical Study on the Journey of Tax Reforms in India

2019 ◽  
Vol 13 (01) ◽  
Author(s):  
Elina Kanungo
Keyword(s):  
Resource Allocation ◽  
Tax Reform ◽  
Tax Rates ◽  
Fiscal Consolidation ◽  
Tax Reforms ◽  
Tax System ◽  
Revenue Collection ◽  
The One ◽  
Taxation System ◽  
Direct Tax

Reforms in the taxation system of a country are an integral part of its development. India has witnessed series of reforms in its taxation system. The tax rates have been rationalize d with simplification in the tax laws results in better compliance, ease of tax payment and better enforcement. India has witnessed reforms in both direct tax system and indirect tax system. After every reform, it becomes quite essential to measure its effectiveness. There are various parameters to measure the affects of the reforms and the tax to GDP ratio is considered to be the one. One of the major objectives of tax reform measures has been to increase total tax to GDP ratio as a means of achieving fiscal consolidation and improving resource allocation. Government of India is working to enhance its revenue collection, at the same time ensuring that cumbersome taxes do not bother the investors. This paper makes an attempt to highlight the journey of tax reforms taken place in India since the post liberalization period. The paper also highlights the tax to GDP ratio over the period of five years of study.

scholarly journals Comparative analysis of Lithuanian and Polish taxation system

2013 ◽  
pp. 110-120
Author(s):  
Lina Šalnytė ◽  
Giedrė Balkytė
Keyword(s):  
Comparative Analysis ◽  
Dynamic Analysis ◽  
Economic Crisis ◽  
Business Owners ◽  
Tax Burden ◽  
Tax Rates ◽  
Tax System ◽  
Tax Systems ◽  
Taxation System

Comparison of tax systems may influence opinion of investors and businessmen because countries,  that have more favourable tax system and where the tax burden is less, seems more attractive for investment. Business owners, shareholders and other businessmen complain of the tax burden in Lithuania. Poland is one of the countries that managed the economic crisis, in spite of the fact that tax rates are higher in this country. The planned aim of the article is to do the comparative analysis of Lithuanian and Polish tax system. In this article the analysis and comparison of Lithuania and Poland tax systems, structural and dynamic analysis of Lithuania and Poland budgets revenue, comparative analysis of the main taxes collection and their burden are presented.

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.

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