Tax-Induced Inequalities in the Sharing Economy

The growth of sharing economy marketplaces like Airbnb has generated discussions on their socioeconomic impact and lack of regulation. As a result, most major cities in the United States have started to collect an “occupancy tax” for Airbnb bookings. In this study, we investigate the heterogeneous treatment effects of the occupancy tax policy on Airbnb listings, using a combination of a generalized causal forest methodology and a difference-in-differences framework. While we find that the introduction of the tax significantly reduces both listing revenues and sales, more importantly, these effects are disproportionately more pronounced for residential hosts with single shared-space (nontarget) listings versus commercial hosts with multiple properties or entire-space (target) listings. We further show that this unintended consequence is caused by customers’ discriminatory tax aversion against nontarget listings. We then leverage these empirical results by prescribing how hosts should optimally set prices in response to the occupancy tax and identify the discriminatory tax rates that would equalize the tax’s effect across nontarget and target listings. This paper was accepted by Victor Martínez-de-Albéniz, operations management.

Penyesuaian Lapisan dan Tarif PPh Orang Pribadi: Agresif atau Progresif?

In 2022, Indonesia would apply changes in tax brackets and rates for personal income tax. This adjustment is based on the Article 17 Paragraph 1 Tax Harmonization Law Number 7 of 2021. The government tries to accommodate the needs of the community through formulating process of this regulation. In particular, it provides convenience to the lower-middle income community and encourages an even distribution of income. People belonging to the high wealth income will be subject to the highest tariffs that have just been set through this law. Through a qualitative descriptive method in which data collection is carried out by taking from literature review; law, articles, books, and website, the author tries to analyze changes in brackets and rates of personal income tax. This study presents illustrations of the calculation to explain the difference in the amount of income tax payable before and after the implementation of the Tax Harmonization Law. In addition, the analysis of the principles of equity and democracy on the adjustment of layers and tax rates is elaborated in this paper. The results obtained explain that with the application of the new tax rate, taxpayers get a tax burden relief because the tax expense is lower due to the broadening of income range. However, wealthy taxpayers will pay more taxes because of the higher tax rates. This condition proves that the new tax rate supports vertical fairness in the taxation system. In addition, the implementation of regulations related to tax rates adjustment provides evidence that the implementation of democracy has been implemented. The adjustment of tax brackets and rates has a positive impact on the community and the government so that the allocation of tax revenues can run optimally to support the welfare of the community.

Tiebout Sorting, Zoning, and Property Tax Rates

This paper examines certain implications from the literature on Tiebout’s model of local gov-ernment service provision, particularly Hamilton’s extension of the model to include local control of land use and property taxation. Our empirical analysis focuses on the use of fiscal zoning to lower property tax rates, a topic that has not been addressed in the extensive Tiebout literature. Using data for over 100 municipalities in the Miami, Florida, metropolitan area, we specify property tax rates as a function of fiscal zoning measures, other municipal characteristics, and tax mimicking. We conclude that single-family zoning is by far the most important variable ex-plaining municipal property tax rates.

What Determine the Corporate Tax Rates During the COVID-19? Evidence From 113 Countries

Fiscal policy implications become an important tool to soften the negative consequences of the COVID-19 pandemic. Given this backdrop, this paper analyses the drivers of corporate tax rates during the COVID-19 pandemic (i.e., in 2020 and 2021). The results from 113 advanced and developing economies show that a higher level of the COVID-19-related uncertainty is positively associated with the corporate tax rates. Similarly, the country size (measured by total population) increases the corporate tax rates. Per capita income is negatively related to the corporate tax rates, but this evidence is insufficient to consider different estimation techniques. The paper also discusses potential fiscal policy implications for the driving mechanism of corporate tax rates for the post-COVID-19 era.

Bilevel Optimization of Taxing Strategies for Carbon Emissions Using Fuzzy Random Matrix Generators

Bilevel (BL) optimization of taxing strategies in consideration of carbon emissions was carried out in this work. The BL optimization problem was considered with two primary targets: (1) designing an optimal taxing strategy (imposed on power generation companies) and (2) developing optimal economic dispatch (ED) schema (by power generation companies) in response to tax rates. The resulting interaction was represented using Stackelberg game theory – where the novel fuzzy random matrix generators were used in tandem with the cuckoo search (CS) technique. Fuzzy random matrices were developed by modifying certain aspects of the original random matrix theory. The novel methodology was tailored for tackling complex optimization systems with intermediate complexity such as the application problem tackled in this work. Detailed performance and comparative analysis are also presented in this chapter.

Factors affecting tax compliance of small and medium enterprises in Hung Yen province, Vietnam

Corporate tax compliance has been an interest of policymakers in many countries. Taxes contribute the most to the government’s revenues in Vietnam in general and in Hung Yen in particular. Therefore, tax compliance of enterprises, including SMEs, attracts special concern of the Government and many localities. The objective of this study is to evaluate factors affecting tax compliance by examining 310 managers, tax accountants and accountants at SMEs in Hung Yen province. The survey data is collected by the statistical software SPSS 20. The experimental research results confirm that factors (the possibility of tax inspection, tax rates, tax penalties, and the complexity of tax policy, social norms and tax knowledge) have different influences on tax compliance in SMEs in Hung Yen province, Vietnam.

The Analytical Review of Foreign Studies on the Impact of Taxation on Corporate Investment

The article provides an overview of foreign studies, mainly American ones, on the impact of tax policy on corporate investment. The research revealed the positive impact of maneuvering tax rates and tax incentives on investments in the corporate sector. At the macro level, special attention is paid to the Laffer curve and its modern applications. The possible use of the King - Fullerton model, as well as the active use of regression analysis in its various variations, are analyzed at the micro level. Besides, the taxation of income from investors' capital, including taxes on dividends, capital gains, and income from bonds are the ussies under analysis. The article also pointed out the complexity of tax systems in most countries, the importance of tax competition between different countries, the impact of tax policy on the structure as well as the cost of capital of companies. The authors identify the areas for further research at the macro and micro levels, emphasizing the lack of such research for developing countries and the need for the study of «natural experiments».

Efek Moderasi Pelaporan Berkerlanjutan dalam Pengaruh Praktik Penghindaran Pajak Terhadap Nilai Perusahaan

Researches on tax avoidance practices and firm value are still inconclusive. Therefore, this study examined whether sustainability reporting moderates the effects of tax avoidance on firm value. Tax avoidance is measured by pull effective tax rates (PETR) and cash effective tax rate (CETR). PETR is a measurement of the value of income that is taxed, while CETR is a measurement of taxes that are actually paid. The study used secondary data taken from companies listed on the Indonesia Stock Exchange from 2016 to 2020. Hypotheses testing using panel regression method. Based on the examination of 1,374 observations, it was found that only 12.7% of the sample prepared sustainability report. It shows that sustainability reporting is still not mandatory for many public companies in Indonesia. According to the hypotheses test, tax avoidance (PETR or CETR) does not affect firm value. Sustainability reporting has a negative moderating effect but not significantly. On the other hand, firm value is significantly influenced by several control variables, including size, profitability, leverage, and age of the firm. These findings complement the literature on the role of sustainability reporting publications in determining firm value in relation to tax avoidance practices. Furthermore, this study is expected to increase the motivation of Indonesian listed companies to produce sustainability reports.