Changes In Tax Burden Research Articles

부동산 공시가격 현실화 정책에 따른 재산세부담의 변화 분석

This study focused on the impact of the policy of realizing published prices of real estate on real estate property taxes and estimated the property tax burden using real estate price announcement data for land, single-family house, and apartment from 2017 to 2020. In addition, the changes in tax burden by year were analyzed and compared by real estate type, price level, and region to discuss the impact of the published price realization policy and suggest policy implications. According to the analysis of changes in the estimated property tax burden, the property tax burden increased significantly after the realization policy, and the gap in the property tax burden by region and price level widened. And the tax burden increased intensively on specific real estate types and high-priced real estate. This suggests that the policy of applying the realization of the published price differently by price range can rather hinder vertical and horizontal equity of taxation among taxpayers.

Value-added tax expansion reform and specialization in China: evidence from textual analysis

This paper investigates the impact of China’s value-added tax (VAT) expansion reform on specialization using data sourced from listed companies. Through an examination of changes in business scope and revenue, two significant findings emerge. First, certain companies extend their services beyond internal use, aiming to boost sales during the post-reform period. This expansion is evident in the changes observed in the business scope matrix. Second, certain service providers experience a significant revenue increase as they attract outsourced orders from manufacturers affected by the reform. The disaggregated analysis of the three sectors involved in the VAT expansion reform further substantiates these findings. Moreover, we rule out tax avoidance as a motive by evaluating actual changes in tax burden, as opposed to projected burdens. These findings have important policy implications for understanding the ramifications of VAT reform and the dynamics of specialization within the industry.

Changes in Tax Burden, Solvency, Profitability, Operating Ability and Growing Ability: A Factor Analysis of China International Logistic Companies

Amid the expansion of global trade, China’s prominence in international commerce is clear, yet its international logistics companies face significant challenges related to tax risks and financial stability. This study examines the financial performance and tax risk of the international logistics sector in China, focusing on key indicators of tax burden, solvency, profitability, operational efficiency, and growth capacity. Employing factor analysis on data from 28 listed logistics firms in China from 2020 to 2022, the study investigates the interrelationships and overall impact of these indicators. The findings reveal that tax burdens exceed industry standards, solvency is weak, and profitability is influenced by both internal and external factors. Additionally, operational efficiency and growth capacity show significant gaps. This analysis identifies critical areas where logistics companies should adopt adaptive tax strategies, optimize debt structures, and invest in operational efficiency to enhance long-term sustainability. Strategic agility in responding to market trends is crucial for capitalizing on growth opportunities, particularly among logistics companies where these actions will strengthen financial performance and global competitiveness.

Reducing the Tax Burden in Ukraine: Changing Priorities

Purpose: To determine the impact of changes in tax burden in Ukraine on the country’s economic freedom. Methodology: The study applies qualitative methods for historical analysis, periodization of reforms, and classification of their key priorities and influences. Quantitative methods are applied to compare tax burden (tax-to-GDP ratio) in Ukraine and OECD countries. The overall success and failure of tax reforms was measured by the index of economic freedom, including its component, the index of tax burden (fiscal freedom). The first hypothesis suggested that a reduction in tax burden positively impacted the level of economic freedom in Ukraine; the second hypothesis stated that a reduction in tax burden positively affected the fiscal freedom of Ukraine. Regressions in average tax burden and the index of economic freedom, including the index of tax burden, were built in R software. Findings: Regression analysis did not confirm the first hypothesis. The second hypothesis was confirmed. Reduced tax burden does not affect the level of economic freedom of Ukraine. This is explained by the slow progress of institutional reforms in Ukraine. The reduction of tax burden has a significant positive impact on the level of fiscal freedom. Practical Implications: The results obtained have practical relevance for the elaboration of fiscal policies in developing countries, in accordance with the country’s economic and political development priorities. Research Limitations/Implications: Future research will include a more in-depth comparative analysis of tax reforms in Ukraine, focusing on the key taxes.

Evaluation of compliance costs interrelation with a level of innovative economic development

Theoretical and methodical provisions of compliance costs influence on the level of economy innovativeness are systematized in this article. The concept of compliance costs in the world literature is investigated, their role in the state regulation quality assurance is determined. Methods of correlation-regression analysis are used to evaluate interconnection of compliance costs in the sphere of tax payment and a number of indicators of social-economical system innovative development. The correlation analysis of interconnection between other components of standard costs was carried out (in particular, aggregate tax burden) in order to establish the influence of different elements of standard costs on the innovation indicators. The analysis has allowed making a conclusion on the absence of significant interconnection of compliance costs and the indicators being studied with simultaneous revelation of noticeable connection with a change in tax burden. The conclusion was made on a greater significance of financial component in the composition of standard costs as compared to the compliance costs.

Explaining changes in tax burdens in Latin America: Do politics trump economics?

This paper examines whether elections, which are generally held on fixed dates, and banking crises explain the timing of tax reforms and the allocation of the additional tax burden. Using an original fine-grained data set of tax reforms, the paper finds support for the role of these two sources of variation. In particular, the probability of reform is higher during banking crises. During electoral periods, increasing taxes becomes highly unlikely, even if the government is facing financing problems. Interestingly, politics seem to trump economics: banking crises do not affect the probability of having a reform during electoral times. Moreover, the presence of an IMF program affects the tax instruments chosen: countries with a program increase the value-added tax, while those without raise the personal income tax. Finally, the ideology of the president does not explain who bears the additional tax burden.

Explaining Changes in Tax Burdens in Latin America: Does Politics Trump Economics?

This paper examines whether elections, which are generally held on fixed dates, and banking crises explain the timing of tax reforms and the allocation of the additional tax burden. Using an original fine-grained dataset of tax reforms, the paper finds support for the role of these two sources of variation. In particular, the probability of reform is higher during banking crises. During electoral periods, increasing taxes becomes highly unlikely, even if the government is facing financing problems. Interestingly, politics seem to trump economics: banking crises do not affect the probability of having a reform during electoral times. Moreover, the presence of an IMF program affects the tax instruments chosen: countries with a program increase the value-added tax, while those without raise the personal income tax. Finally, the ideology of the president does not explain who bears the additional tax burden.

A Common Corporate Tax Base for Europe: An Impact Assessment of the Draft Council Directive on a CC(C)TB

After intensive and extensive preparation, the European Commission released the long-awaited proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) on 16 March 2011. In the context of the Europe 2020 Strategy, major objectives of the proposed CCCTB are the elimination of transfer pricing concerns, the removal of double taxation due to conflicting tax claims between Member States and, of course, the reduction of tax compliance costs. However, as the second and the third step of the proposed CCCTB, i.e. the consolidation and the allocation mechanism, still suffer from considerable shortcomings, we recommend introducing the CCCTB in two steps. In this context, our paper focuses on the first step of a CCCTB, i.e. the common corporate tax base (CCTB). The paper combines qualitative and quantitative analyses on the key differences and similarities between the proposed CCTB and current tax accounting practice in all 27 Member States, Switzerland and the United States It offers not only a broad geographical scope, but also great detail in analysing the differences in tax accounting and quantifying the change in tax burden induced by the introduction of a CCTB in each Member State, Switzerland and the United States.

Do Voters Reward Incumbent Parties for Reductions in Tax Burdens? An Empirical Analysis Using Norwegian Tax Register Data

This article examines the importance of retrospective pocketbook voting, i.e. that voters reward an incumbent party for an improvement in their own economic situation, in the Norwegian 2005 general election. The article utilizes a dataset with extensive tax register information on income and tax payments in 2004 and 2005, which makes it possible to examine how changes in tax burdens affect the probability of voting for an incumbent party. The results show that a reduced tax burden is not significantly correlated with vote choice, a finding that questions the reward/punishment logic of retrospective pocketbook voting. The article does, however, find some evidence of retrospective sociotropic voting, as the county-level unemployment rate is significantly correlated with vote choice.

A Common Corporate Tax Base for Europe: An Impact Assessment of the Draft Council Directive on a CC(C)TB

After intensive and extensive preparation, the European Commission released the long-awaited proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) on March 16, 2011. In the context of the Europe 2020 Strategy, major objectives of the proposed CCCTB are the elimination of transfer pricing concerns, the removal of double taxation due to conflicting tax claims between Member States and, of course, the reduction of tax compliance costs. However, as the second and the third step of the proposed CCCTB, i.e. the consolidation and the allocation mechanism, still suffer from considerable shortcomings, we recommend introducing the CCCTB in two steps. In this context, our paper focuses on the first step of a CCCTB, i.e. the common corporate tax base (CCTB). The paper combines qualitative and quantitative analyses on the key differences and similarities between the proposed CCTB and current tax accounting practice in all 27 Member States, Switzerland and the U.S. It offers not only a broad geographical scope, but also great detail in analyzing the differences in tax accounting and quantifying the change in tax burden induced by the introduction of a CCTB in each Member State, Switzerland and the U.S.

Tax Burden and the Mismeasurement of State Tax Policy

Tax Burden, defined as the ratio of total tax revenues over personal income, is frequently used to measure state tax policy. The authors analyze the empirical relationship between changes in Tax Burden and changes in tax policies from 1987 to 2000 using states’ forecasts of revenue impacts of new tax legislation. Their two major findings have important implications. First, they demonstrate that income-induced, nontax policy changes are a significant determinant of changes in Tax Burden. These income effects are likely to cause misinterpretation when Tax Burden is used as a variable in economic growth regressions. Second, they estimate that approximately half of the total variation in Tax Burden is due to changes in nontax policy factors. This finding quantifies the extent of the “mismeasurement” problem that has been discussed, but not analyzed, in previous literature. In concluding, the authors promote the use of alternative approaches for estimating the economic effects of taxes.

Distribution Tables and Federal Tax Policy: A Scoring Index as a Method for Evaluation

Distribution tables have become ubiquitous to the tax policy debates surrounding major legislative initiatives to change tax law at the federal level. The fairness of any proposed change to federal tax policy has become one of the most highlighted components of tax policy discussions. Most research on tax distribution analysis focuses on methodological issues for properly measuring a change in tax burden. However, published research on how different methodologies and presentations of data are used in tax distribution analysis to influence and define the boundaries of the issue has not kept pace. Given the prominent role distribution tables have come to play in the tax policy process, it is appropriate and necessary to have a more thorough understanding of how different methodologies and presentations of results affect the portrayal of proposed changes to federal tax policy. The presentation of tax data within distribution tables can hide or omit important information that is required in order to effectively evaluate the merits of any tax legislation. Many producers of distribution tables show only the information necessary to present their policy preferences in the best possible light. The different economic assumptions and presentations of data used by the various groups that release distribution tables have the inherent consequence of providing the public with numerous tables that are often used as political ammunition to influence and shape debate. The purpose of this research is to contribute to the tax policy research literature by exploring the limitations and biases inherent in specific designs of tax distribution tables and in specific methodological approaches to tax distribution analysis. This is done by means of a systematic examination of how, in current practice, different designs and methodologies provide an incomplete picture of a proposed change to federal tax policy. By comparing distribution tables as used by different groups to provide alternative perspectives of various tax proposals, the research shows how the use of tax distribution tables often provides misleading results about the impact of proposed tax legislation in order to influence and shape the issues surrounding a proposed change to federal tax policy. Finally, a method for evaluating tax distribution tables is proposed which will highlight the deficiencies of design and methodology which characterize the present use of tax distribution tables. An index of questions is provided as part of this research project to serve Tax Distribution Table Scoring Index (TDTSI). The TDTSI will assist in balancing the different perspectives presented via tax distribution tables by identifying the biases and limitations associated with different methodologies and presentations of data. The utility of the TDTSI is as an evaluation tool to reveal the perspectives presented and balance any misleading or biased presentations of data in tax distribution tables. The results of the comparative research on the design and methodology of tax distribution tables together with the demonstration of the TDTSI as an analytical tool both contribute to the critical debates in the tax policy research literature as well as provide reform and add value to the practical use of tax distribution tables by policy makers and the public.

Income taxes and the timing of marital decisions

In this paper we estimate the impact of the federal individual income tax on the timing of marital decisions. Anecdotal evidence suggests that the tax penalty often associated with marriage contributes to the decision of when to marry. Using household data from the Panel Study on Income Dynamics, we estimate various models of the probability of delaying marriage as a function of the change in tax burden caused by marriage (as well as several other variables). We find that there is a significant positive relationship between the marriage penalty in a year and the probability of delaying marriage until the following year. The magnitude of the effect, however, is small.

On the Optimal Rate Structure of an Individual Income Tax

What is the optimal rate structure of a personal income tax? In the literature on optimal taxation this important question has been approached by introducing a linear income-tax formula into a revised Ramseyian model which takes into account both efficiency and equity objectives of taxation. The assumption of a linear tax enables us to examine the degree of tax progression through the behavior of the average rate, but it does not throw light on how the marginal rate should vary with income [1, Lecture 13]. A classic paper by Mirrlees [7], which was later expounded on by Atkinson and Stiglitz [1, 412-22], solves this problem by explicitly considering a general income tax schedule. However, both linear and general tax formulae provide little guide for policy making, since in practice the tax rates are graduated by a bracket system. That is, the income scale is divided into segments or brackets and rates are applied only to the income in each bracket. Rates increase (or decrease) by small percentage points from one bracket to the next, in order to avoid large and abrupt changes in tax burden as income rises. The present paper attempts to demonstrate how we can easily transform a segment-graduated tax system into a multiple linear system and then incorporate it into the standard optimum-taxation model. We then proceed to derive the conditions governing the optimal value of an upper (or lower) limit of a tax bracket and the marginal tax rate applied to the bracket. Combining these conditions together will enable us to infer what the optimal rate structure should be.

Bureaucracy and the ?publicness? of local public goods: A reply to Gonzalez, Folsom and Mehay

Readers of the literature on bureaucracy will recall that three years ago Gonzalez and Mehay,(1985) published an empirical piece utilizing a slack-maximizing model of bureaucratic behavior which concluded that local public goods are really private goods. My own article (Wyckoff, 1988a) reached the same conclusion using theoretical means. The effect of bureaucracy, I argued, is to bias our results toward the conclusion that local public goods are public in nature, so the empirical results showing the opposite cannot be blamed on bureaucracy. Now, in a surprising comment on my paper, Gonzalez, Folsom and Mehay (1988) (GFM) assert that I made methodological errors in the process of establishing my result. Not content with my agreement with their conclusions, GFM demand that I reach these results using their methodology. GFM insist that I ignore four special cases in my paper. Each one of these special cases is discussed below. In general, I find little merit in their arguments. Each special case is either obviously unrealistic or relates to a question completely different from those discussed in my paper. First of all, GFM argue that I fail to note that the voter's tax share t is likely to vary with city population N. When this correlation is incorporated into my model, they say, the reverse of my results could occur. But there is a fundamental error in allowing t to vary with N. The issue in this paper is not whether large cities spend more than small cities - nobody disputes this - but whether local public goods are public goods or not. What we want to know is whether two people can enjoy a public service just as easily as one. By including tax considerations in the calculations as they have done, GFM confuse crowding effects with changes in spending caused by changes in tax burdens. When t is allowed to vary with N, we no longer have a measure of the crowding parameter, but a composite which cannot answer the question we originally asked. An analogy may help clarify GFM's error. GFM's approach is equivalent to suggesting that, since wealthy people have larger homes and hence larger tax