Abolition Of Tax Research Articles

Taxation and entrepreneurship of migrant workers: evidence from China

PurposeMigrant workers play a vital role in the development of countries such as China. However, they often face greater barriers in entrepreneurship. Yet, few studies have focused on the effect of institutional factors on migrant workers' entrepreneurial behaviors. To address this gap, this study concentrates on the role of taxation.Design/methodology/approachThis study takes the agricultural tax abolition reform implemented in rural China since 2004 as an exogenous shock and uses the difference-in-difference (DID) method to examine its effect on migrant workers' entrepreneurship based on longitudinal data from the China Health and Nutrition Survey (CHNS).FindingsWe find that the reform significantly improves the probability of migrant workers engaging in entrepreneurship. Heterogeneity analysis reveals that the reform exerts a notably more pronounced positive impact on male, younger and migrant workers in the Western region. Further analysis reveals that the three main mechanisms are increased household income, female human capital accumulation and increased social capital, including social networks and social trust.Originality/valueThis study is first to offers an institutional perspective on the determinants of migrant workers' entrepreneurship in China. Additionally, the study can provide insights for policymaking intended to support employment and entrepreneurship among low-skill migrant workers.

Estimating the market share of electric motorcycles: A system dynamics approach with the policy mix and sustainable life cycle costs

Introducing electric vehicles is critical to maintaining air quality and reducing carbon emissions. The Indonesian government has issued several regulations to stimulate the diffusion of electric vehicles. This research attempts to forecast the electric vehicle market share, especially electric motorcycles, by involving the policy mix and sustainable life cycle costs. We propose a system dynamics approach that takes into account a policy mix including 0% down payment without credit interest subsidies, tax abolition, expansion of charging station network, and sustainable life cycle costs, i.e., total cost of ownership, social, and environment. The system dynamics model has four modules: the electric motorcycle cost, the conventional motorcycle cost, the economy module, and the consumer market. The simulation results show that the electric motorcycle market share will increase positively in 2021–2030, reaching 5.7% in 2030. Based on the scenario simulation results, providing more charging stations and vehicle tax abolition can significantly boost the market share of electric motorcycles in Indonesia. The study provides valuable insights for policymakers in formulating more appropriate policy instruments to promote electric vehicle diffusion in Indonesia.

Local government fiscal stress and regional entrepreneurship: Evidence from a natural experiment in China

Employing the abolition of the agricultural taxes in 2005 in China as a natural experiment, this paper investigates the impact of local government fiscal stress on regional entrepreneurship. We find that the reform results in increased fiscal expenditure and decreased new firm entry. This result suggests that local government fiscal stress is a significant hindrance to regional entrepreneurship, particularly in areas with low fiscal self-sufficiency, limited financial development, and weak legal systems. We also explore the mechanisms through which agricultural tax abolition affects entrepreneurial activities. Our findings indicate that four mechanisms are effective in influencing entrepreneurship, including enhanced tax collection and management, increased local debt, rising land prices, and heightened uncertainty perception by entrepreneurs. Overall, our research provides new insights into the relationship between local fiscal stress and economic development from the perspective of regional entrepreneurship.

Uniform agricultural tax abolition and differential household labor supply: Evidence from China's urban household survey

Uniform government public policy has steadily shaped the labor supply from households in the past few decades in China with possible differential impact on each parent. This paper investigates how uniform tax policy change plays differential roles in household's labor supply through government public education spending. Utilizing the exogenous shock from China's agricultural tax abolition in 2005, we find that the abolition results in a reduction in female employment but an increase in male employment. Specifically, a 1% increase of agricultural tax to public revenue ratio in the reference year leads to a 0.485% labor supply reduction and 1.50 fewer hours of work per month for married women, whereas the married men's labor supply increases by 0.191% and their working hours by 1.06 h in a typical urban family with school-going children. The effects are greater on married women with primary school-age children and married men from high-asset households. Our mechanism analysis indicates that public education spending works as a substitute for private education spending and affects the household labor supply through investment in children's human capital. Our findings offer a new perspective on the decreasing female labor supply and the widening employment gap between (married) women and (married) men in the Chinese labor market. The findings suggest that public tax policy could lead to unintended consequences on household's labor supply decisions, and thus exacerbate the gender employment gap in the labor market.

Industrialize with Tax Structure Change: Agriculture Tax Abolition and Local Industrial Growth in China

Industrialize with Tax Structure Change: Agriculture Tax Abolition and Local Industrial Growth in China

Abolishment of a tax on imputed income: consequences for business and budget

The article purpose is to investigate changes of taxpayers in the simplified and patent taxation system, in the structure of tax revenues of regional and local budgets, in the tax burden on taxpayers that occurred in connection with the abolition of tax on imputed income (from 2021). The research used generally accepted methods of scientific cognition, such as analysis, synthesis, generalization, grouping, tabular method. The information base of the study was the Tax Code of the Russian Federation, official reporting data of the Federal Tax Service of Russian Federation, authors’ publications on the topic under study. The study obtained the following results. The tax revenues of local budgets decreased, having lost the source of income in the form of tax on imputed income, previously credited in full; the tax burden on taxpayers increased (when tax on imputed income was applied, it was minimal). The main conclusion of the study is the fact that the patent taxation system, which can be applied by entrepreneurs who have ceased to be payers of tax on imputed income, needs a radical transformation. It is necessary to improve the efficiency of such system in terms of determining the amount of income from which the cost of a patent is calculated.

Evaluating fiscal policy reforms using the fiscal frontier

We develop a Fiscal Frontier which traces out the maximum government debt level that can be sustained at a given welfare cost. Through duality, the intertemporal policy mix underpinning the Frontier mirrors standard Ramsey policy and defines an upper limit on the welfare gains that can be achieved by any fiscal reform. The Frontier is then used to evaluate a variety of fiscal reforms: (1) one-off changes in tax instruments considered in Laffer curve calculations, (2) a gradual reduction in capital taxation proposed by Lucas (1990), and (3) fiscal consolidation strategies akin to those considered by the Congressional Budget Office. Conventional Laffer curve calculations significantly under-estimate the sustainable debt of the US. The desirable pace of capital tax abolition has slowed since the 1970s, but the reform remains close to the Frontier. Achieving debt reduction targets considered by the Congressional Budget Office is typically very costly, especially when the fiscal consolidation is large and must be achieved quickly, but a simultaneous capital tax reform can more than offset those costs in all cases we consider.

Dampak Kepemimpinan Wu Zetian Pada Masyarakat Tiongkok Tradisional Dalam Novel The True Story Of China’s Cleopatra Karangan Jonathan Clements

<p><strong><span lang="IN">The Tang Dynasty is one of the most famous dynasties in China. In addition to the discovery of many discoveries, this dynasty also has many interesting stories. One of them is the story of Empress Wu Zetian (</span><span>武则天</span><span lang="IN">Wǔzétiān). who is the only female emperor in China. The story of Empress Wu Zetian, the female emperor, has attracted a lot of interest from the public and even novelists. This study reviews the impact of Empress Wu Zetian's leadership on traditional Chinese society in the novel The True Story of China's Cleopatra. The author uses a qualitative descriptive approach, a research approach by examining qualitative sources to examine the impact of Empress Wu Zetian's leadership on traditional Chinese society in the novel The True Story of China's Cleopatra. From the research that has been done, it is known that during her reign, Empress Wu Zetian has made many positive impacts on current traditional Chinese society. Examples such as the existence of a state examination system that can be followed by all circles of society, the abolition of taxes to workers and farmers, the development of Buddhism and also equal rights for women in its time</span></strong>.</p><p><strong><em><span lang="IN">Keywords </span></em></strong><span lang="IN">-<em> The True Story of China’s Cleopatra, Empress Wu Zetian, Tang Dynasty, The Impact of her rule</em></span></p>

Tax Abolition Relief vs. Tax Fairness

This article relates to the personal income tax relief, hereinafter referred to as the tax abolition relief, which has been applicable since 2008. On its implementation as well as during its further application, the tax abolition relief gave rise to numerous difficulties of interpretation. Consistently, the point of reference throughout the legislation process and the application of law has been the principle of tax fairness. This aspect has also been raised during the recent implementation of the amendments to this tax relief. The author analyses the origin justifying the tax abolition relief and its substance, considering the amendments that became binding since the beginning of 2021. The study material was based on the Polish legislation and doctrine and expanded by the aspects of international tax law.

Local fiscal pressure, policy distortion and energy efficiency: Micro-evidence from a quasi-natural experiment in China

This study develops a stylized theoretical model wherein local fiscal pressure induces policy distortions and thereby reducing the energy efficiency (EE) in firms in the manufacturing sector. Combined with local government behavior and the response of firms, we propose two possible channels: the factor substitution effect and pollution compensation effect. To test theoretical predictions, with large and unique firm-level data, we adopt a difference-in-difference (DID) approach to identify the causal effect of local fiscal pressure on EE using the agricultural tax abolition reform of China as a quasi-natural experiment. The study finds robust and consistent evidence that severe local fiscal pressure caused by agricultural tax reform has significantly reduced the EE in firms in the Chinese manufacturing sector. Specifically, Chinese local governments spurred industrial development by distorting energy prices to ease fiscal pressure, which led to reduced EE through factor substitution. Pollution compensation reinforces the factor substitution effect, further worsening energy efficiency. Our findings are deemed robust after controlling for the parallel trend test, placebo test, influences of measurement error, and other estimation issues. Finally, we provide new and detailed policy implications for China's future fiscal system reforms and energy market reforms to avoid unintended consequences.

“Poison to the Economy”: (Un-)Taxing the Wealthy in the German Federal Parliament from 1996 to 2016

The concentration of wealth is a key component of the rise in economic inequality at the beginning of the twenty-first century. While the abolition of taxes on private wealth during the 1990s and 2000s is recognized as an important institutional driver behind this development, comparatively little is known about the justification of tax cuts for the wealthy in advanced democracies. This paper investigates how the abolishment of the personal net wealth tax in Germany, a country with high levels of wealth inequality, has been debated and justified in parliament over a period of 20 years. Using a mixed methods approach that combines computational social science methods and a qualitative analysis, we examine how Germany’s two major parties, the Christian Democrats (CDU) and the Social Democrats (SPD), have variously construed the meaning and purpose of the wealth tax and justified their support for or opposition to it. While the Social Democrats debate the wealth tax primarily from a social justice perspective, the Christian Democrats rely on an efficiency frame that invokes biological metaphors, enabling them to narrate the wealth tax as a threat to the social body. Paradoxically, then, by arguing that the tax is “poison to the economy”, conservative discourse succeeds in linking opposition to the wealth tax to a principle of social unity. On these grounds, we suggest that future research should scrutinize how the interrelation between political discourse and institutional architectures has facilitated the rise of wealth inequality in recent decades.

OPTIMIZING THE CHOICE OF TAX REGIMES BY BUSINESS ENTITIES

The article is devoted to the abolition of the tax regime from 2021 in the form of the single tax on imputed income. Some of the requirements imposed by the state for each tax regime providing preferential tax treatment, excluding the standard taxation scheme, were presented. The taxation regimes that can be chosen by small businesses in view of the abolition of the single tax on imputed income were proposed.

Abolition of Tax on Acquisition of Immovable Property: A Tool to Suppress the Negative Consequences of Covid-19 or a Politicum?

The tax on acquisition of immovable property was abolished on September 26, 2020 in the Czech Republic. One of the reasons mentioned in the explanatory report to the Act was the statement that the abolition deals with the effects of this virus on society. The main aim of the article is to answer the question of whether the abolition of the tax on acquisition of immovable property is a tool to suppress the negative consequences of Covid-19 or a politicum. To get the answer, it is necessary to shortly describe the tax on acquisition of immovable property and its structural components and make a basic comparison with the other EU Member States. We also summarise the pros and cons of the tax and related findings of the Constitutional Court. As the property transfer tax is connected with the income tax and there were several amendments in the proposal, it is needed to analyse these changes. Based on the research, it is possible to conclude that the abolition of the tax on acquisition of immovable property is definitely not a tool to suppress the negative consequences of Covid-19; it is just a politicum: political parties believe that the abolition of the transfer tax brings them more voices in the elections.

Pelaksanaan Ketentuan Pasal 15 Ayat (2) Huruf B Undang-Undang Nomor 11 Tahun 2016 Tentang Pengampunan Pajak

The purpose of this study is to analyze the implementation of the provisions of Article 15 paragraph (2) Letter b of Act Number 11 Year 2016 on Tax Amnesty. The Tax Amnesty is a Government program as regulated in Act Number 11 Year 2016 concerning Tax Remissions that the abolition of taxes that should be payable for income tax is not subject to tax administration sanctions or criminal sanctions in the field of taxation by disclosing property and paying ransom. Disclosure of property carried out by the taxpayer using Statement Letter containing debt, net worth, and calculation and payment of ransom including property in the form of moving objects or immovable objects that have been reversed name on behalf of the taxpayer and who have not reversed the name of the taxpayer's. Specificallyfor Statement Letter on immovable objects in the form of land and / or building who have not reversed the name of taxpayer's must be with Statement Certificate legalized by Notary as stipulated in Article 15 Paragraph (2) Letter b of Act Number 11 Year 2016 concerning Tax Amnesty. In practice, the provisions of this article have not been properly implemented.

PENGARUH MOTIVASI, TINGKAT PENDIDIKAN, DAN SOSIALISASI DALAM MENDORONG KEMAUAN WAJIB PAJAK MENGIKUTI PENGAMPUNAN PAJAK (Studi Kasus Pada Kantor Pelayanan Pajak Pratama Manado)

Tax Amnesty is an Indonesian government’s program that aims to accelerate Indonesian economy through wealth transfer and tax ransom payment from the taxpayers. The tax amnesty is tax abolition that should be owed, not subjected to administrative sanctions and tax penalties by reveal the wealth and pay the ransom. The objective of this study is to determine the influence of motivation, education level and socialization on the willingness to participate in tax amnesty in Manado Tax Office. This study used multiple linear regression method with SPSS version 20.0. The population is taken from the taxpayer that participated tax amnesty program in Manado Tax Office and the sample used in this study amounted to 100 taxpayers. The result showed that motivation, education level and socialization have an influence on the willingness to participate in tax amnesty.Keywords: motivation, education level, socialization, tax amnesty

ANALISIS KEPATUHAN WAJIB PAJAK ORANG PRIBADI SEBELUM DAN SESUDAH PELAKSANAAN TAX AMNESTY DI KPP PRATAMA MANADO

Tax amnesty is a government policy in the form of abolition of taxes that should be payable, not subject to tax administration sanctions and criminal sanctions in the field of taxation. Tax amnesty aims to encourage the level of public awareness and taxpayer compliance, then can increase state revenue in the field of taxation. The purpose of this research is to know the change of WPOP number after tax amnesty, and to know the level of compliance of WPOP in SPT realization and amount of SKP issued before and after tax amnesty. The object of research is KPP Pratama Manado. The analytical method used is descriptive to describe how WPOP compliance level. The results of this study indicate that the number of registered WPOP increases during the tax amnesty period. Against WPOP compliance after the amnesty tax shows, the realization of the Annual Tax Return is decreasing compared to the previous year, but the amount of SKP issued is reduced. Tax amnesty contributes 12.6% of tax revenues in 2016 in Paratama Manado's KPP.Keywords: tax amnesty, WPOP amount, WPOP compliance, tax revenue

Labor out-migration and agricultural change in rural China: A systematic review and meta-analysis

The relationships between migration and agriculture represent a key aspect of rural restructuring in China and many other developing countries. Previous research largely generated mixed and incomplete findings on the effects of rural out-migration on agricultural change. Meta-analysis is considered as an important research strategy for comparing and integrating results from individual studies. Using a qualitative comparative analysis (QCA) approach, we conducted a systematic review and meta-analysis of recent case studies of labor out-migration and agricultural change in rural China. The analysis revealed general contextual patterns of migration impacts on agriculture. Migration-induced agricultural change was mainly conditional upon the specific conjunctural configuration of a rural community’s economic development level or geographical locality, its land resources and dependence on agriculture, and whether the period under investigation was post-agricultural tax abolition. Overall, this meta-study provides the big picture of the complex migration–agriculture relationships in rural China, which is often missed in smaller-scale case studies. Such synthetic findings are particularly useful for informing evidence-based rural development planning and policy making.

The effect of China's agricultural tax abolition on rural families' incomes and production

This paper uses the rural household panel data collected by Research Center for Rural Economy to evaluate the impacts of China's agricultural tax abolition during 2004–2005 on farmers' income and production behavior. We find that the abolition of agricultural tax did not significantly affect agricultural production. The effects on input use and productivity are also found statistically insignificant. All these are consistent with the lump-sum property of the tax and imply little effect of the tax abolition on relaxing credit constraints to farmers. Finally, we find that the tax abolition did not increase farmers' net income significantly.

Economic Effects of Tourism Tax Changes in Australia: Empirical Evidence from a Computable General Equilibrium Model

This paper analyses the economic effects of tourism tax changes in Australia. To this end, a tourism tax model (TTM), a computable general equilibrium (CGE) model of the Australian economy, is developed explicitly incorporating two tourism sectors. This is an important improvement in modelling tourism in a CGE context. The tourism sectors are incorporated using the ‘tourism dummy sector approach’, in which both the demand and supply sides of tourism sectors are modelled adequately to reflect the true nature of tourism. This model is used to carry out simulations of abolishing tourism taxes which are financed by an increase in the GST (goods and services tax). The simulation results suggest that the tourism sector expands as a result of tax abolition, while the other sectors contract. The increase in the GST, on the other hand, leads to an increase in commodity prices and thus the economy suffers, as reflected in a reduction in GDP. Overall, the results show that these tax changes are contractionary, as reflected in real consumption and GDP.

The neoliberal project—Local taxation intervention in Scotland

This paper is concerned with one of the central economic aspects of neoliberalism namely taxation. The shifting of the burden of taxation from the rich to the poor has been one of the raft of neoliberal economic reform policies. However, there has been a growing social movement in the UK against such a regressive form of taxation. This was led by a socialist political party in Scotland. 1 1 The Scottish Socialist Party (SSP). Up until the last Scottish General Election in 2007 the SSP had 6 Members of the Scottish Parliament (MSPs), but due to an internal split the SSP lost all its seats in the Scottish Parliament. However, many of the key elements outlined in the Scottish Service Tax (SST) Bill, proposed by the SSP, were included in the Scottish Nationalist Party's (SNP) Bill put before the Scottish Parliament in 2008 to replace the regressive Council Tax. This party devised a new taxation system which was specifically designed to reverse some of the economic inequalities brought about by the neoliberal turn. The new form of taxation, the Scottish Service Tax formed a bill (the Council Tax Abolition and Service Tax Introduction (Scotland) Bill) which was put before the Scottish Parliament in February 2006. This paper, taking a political-economy perspective, sets the possibilities presented by the bill within the context of neoliberalism.