Victory Tax: A Holistic Income Tax System

How can an income tax system be designed to exploit human nature and a free market to create a poverty free society, while balancing budgets without disproportional tax burdens? Such a tax system, with universal character, is deduced from the following guiding principles: (1) a single tax rate applies to all income types and levels; (2) the tax rate adjusts to satisfy budget projections; (3) government transfer only supplements the income of households with self-generated income below the poverty line; (4) deductions for basic living expenses, itemized investments and capital losses are allowed; (5) deductions cannot be applied to government transfer. A general framework emerges with three parameters that determine a minimum allowed tax deduction, a maximum allowed itemized deduction, and a maximum deduction defined by income percentage. An income distribution that mimics the United States, and a series of log-normal distributions are considered to quantitatively compare detailed characteristics of this tax system to progressive and flat tax systems. To minimize government dependency while maximizing after-tax income, the effective tax rate (ETR) as a function of income percentile takes the shape of the letter, V, inspiring the name victory tax, where the middle class has the lowest ETR.

Local Government Transfer into the Process of Ukraine's European Integration: Achievements of Communities and Losses of the Executive Branch of Power

The obligations assumed by the Ukrainian state by ratifying the association agreement between Ukraine and the European Union have become a reference point for transformations taking place in various spheres of public life, including local self-government. The article analyzes Ukraine's compliance with EU requirements regarding local self-government organisation, achievements in this field, and determining the prospects for reform. The analysis is grouped into four blocks: implementation of administrative and territorial reform; budget decentralisation; optimization of the organization of local public authorities (executive bodies formation of regional (oblast) and district (rayon) councils, the establishment of prefectures); land reform (transfer of land management to communities). The powers of local self-government bodies and state bodies were transformed in implementing municipal, territorial, fiscal and land reforms. However, further reforms are impossible without amendments to the Constitution of Ukraine (regarding the decentralisation of power), the adoption of new legislative acts (on the principles of the administrative-territorial structure of Ukraine, on prefectures), as well as amendments to some existing ones (on local self-government, etc.).

Effect Of Balancing Funds And Special Autonomy Funds On Economic Growth In West Papua Province (Capital Expenditure As An Intervening Variable)

Economic growth in West Papua Province is intensively carried out in order to pursue better economic development compared to other regions. The impetus for regional development comes from the central government transfer namely the balance fund and the special autonomy fund. The purpose of this study was to analyze the magnitude of direct and indirect effects through intervening variables. The variables in this study are balance funds (X1), special autonomy funds (X2), capital expenditure (Z) as intervening variables and economic growth (Y). The data source comes from BPS. By using the path analysis regression method. The results showed that the balancing fund and special autonomy fund did not significantly influence capital expenditure, while the balancing fund, special autonomy fund and capital expenditure had a significant effect on economic growth. The indirect effect shows the insignificant influence of the balance fund and special autonomy fund through intervening variable capital expenditure on economic growth.Keywords : Balancing Funds, Special Autonomy Funds, Capital Expenditure and Economic Growth