Changes In Tax Structure Research Articles

Measuring tax effort in developing countries

The traditional methodology, as established by the International Monetary Fund, for measuring tax effort over time and in relation to estimated taxable capacity, is based on the tax ratio. The objects of the article are: (a) to demonstrate that government policy can not be deduced from the buoyancy of tax revenue as reflected in the observed rates of growth or relative magnitudes of the tax ratio; and (b) to propose an alternative measure based directly on policy determined discretionary changes in tax structures, with which the IMF taxable capacity measure, correctly interpreted, could be complementary.

STATE REVENUE ELASTICITY AND EXPENDITURE GROWTH

ABSTRACTRecent analyses and theories of public choice suggest faster public sector expansion in states with highly elastic revenue structures. This paper estimates the contribution of elasticity of tax revenues to the growth of expenditures in the 50 American states since 1960, based on elasticity measures for state revenue sources compiled by the Advisory Commission on Intergovernmental Relations, an index of state tax structural change, and controls for federal aid to states, population increase, and per capita growth in real income.Results for 1960‐1970 show a small positive relationship between revenue elasticity and expenditure growth, but this becomes weak and negative for 1970‐1976. Spending has increased most in states with the least elastic revenue sources; these states have made considerable changes in tax laws, while states with elastic revenue sources have been more likely to cut taxes than to increase spending. Federal aid, rather than tax elasticity, is the best predictor of state expenditure growth, while legislative changes in tax structure have enabled states to keep pace with rising demand for revenue due to growth in population and real income.

Economic Development and Tax Structure Change: Mexico, 1895-1975

The relationship between economic development and tax structure change has generally been analyzed on the basis of cross-sectional data. This article looks at the relationship from a time series point of reference, taking the example of Mexico from 1895 to 1975. The regression equations find numerous statistically significant associations between the dependent variable, revenue/tax ratios and different tax categories, and the explanatory variables which represent proxies for economic development.

GOVERNMENT REVENUE AND EXPENDITURE AND THE DEVELOPING COUNTRIES: A SURVEY

GOVERNMENT REVENUE AND EXPENDITURE AND THE DEVELOPING COUNTRIES: A SURVEY

Effects of changes in UK North Sea oil taxation

Changes in North Sea oil tax structure were introduced by the UK government in mid-1979. The new system is aimed at increasing revenues to the state without damage to exploitation and production. This paper considers the effects which the new tax regime, and each of its components, will have on different types of field being exploited under various circumstances. The analysis also considers sensitivity to capital cost inflation, effects on multi-field operation and the results of two other possible tax schemes. It is found that the new tax scheme will considerably alter the structure of the tax burden and will increase the overall tax take. Marginal tax rates will also increase, not least for some fields with low expected returns. The new scheme will, however, continue to favour capital intensive exploitation techniques.

Financing Development and Tax Structure Change in the USSR

Click to increase image sizeClick to decrease image sizeAbstractLes économies socialistes ne sont que rarement inclues dans les études empiriques de la taxation par suite de données limitées et aussi à cause de la présomption que les systèmes socialistes de taxation sont différents d’une manière qui leur est propre de ceux des économies de marché. Cette étude soumet que le developpe ment de la taxation soviétique a suivi le modèle typique de la plupart des systèmes non socialistes: depuis 1917 l’URSS a déplacé l’accent entre impôt direct et indirect et de ce fait a également déplacé l’incidence de la taxation. Ainsi, bien que certains aspects de la politique soviétique puissent être spécifiques à l’URSS, la modalité du changement ajoute des preuves à l’argument que ni la structure de la taxation, ni la pratique du développement en URSS ne sont uniques.

Transformations and the Income Tax

Transformations and the Income Tax

A Rationale for Restructuring Stock Plans

The past few years have been trying for the financial manager concerned with executive remuneration in his corporation. First, he watched helplessly as the Congress debated a myriad of tax changes that threatened to further scramble his already complex decision environment. Next, he was forced to interpret the product of that debate, a document many believe misnamed as the Tax Reform Act of 1969. Since passage of that measure, a barrage of articles recounted the major provisions of the legislation and speculated as to its likely impact on the composition of the executive pay package. Most observers feel that the stock option, the darling of many corporate compensation programs, has lost a significant portion of its appeal and will comprise an increasingly smaller proportion of the value of future pay packages. This same conclusion, it should be noted, was advanced after the extensive tax changes in 1964; the predicted shifts at that time, however, failed to materialize. As corporate administrators have responded to the changes in the tax code, the business press has continued its assault, changing its emphasis to documentation of the accuracy of its earlier predictions. Frequently lacking in this snowstorm of advice and comment is analysis of the interests of both the executive and his employer corporation. A few exceptions [3, 4, 9, 10] provide figures to back up their conclusions; a thorough analysis of the economic justification for the observed changes has to date been unavailable. This article will provide the analysis to bridge the gap between assertion and underlying economics. The analysis utilizes a cost/benefit methodology within the framework of a simulation. The model isolates the effects of the changes in the tax structure by considering both the relative benefits and relative costs of a variety of compensation vehicles before and after tax reform. The advantage of the simulation technique is that it tests the generality of conclusions by varying parameters.

Problems in the Reform of Land Tenure

Tha PRACTICAL DIFFICULTIES of inducing land tenure reforms such as Land Value Taxation are enormous. Fundamental changes in land tenure or tax structure can have a great revitalizing effect throughout a whole national, or even indeed international, economy. But they can also cause great dislocation of and disturbances to individuals, industries, and government agencies well adjusted to old patterns. Usually major reform movements can progress rapidly only when some disaster or slump creates a general dissatisfaction and desire for a clean sweep and a fresh new approach.

BOOK REVIEWS

Fundamentals of Modern Agriculture. Edited by C. D. Blake.Distribution of Groceries. Economic Aspects of the Distribution of Groceries, with Special Reference to Western Australia. By D. H. Briggs and R. L. Smyth.Marketing and Economic Development. Edited by C. J. Miller.Agricultural Producers and Their Markets. Edited by T. K. Warley.Agricultural Development in Tropical Africa. By J. D. DE Wilde et. al.Wool? Modern Myths and New Horizons, By G. S. LE Couteur.Agricultural Economics in Tangunyiku. By H. Ruthenberg.Back of Bourke. By R. L. Heathcote.Shearing Shed Management. By H. S. Woodbridge.Tax Burden on Indian Agriculture. By V. P. Gandhi.A General Theory of Tax Structure Change During Economic Development. By H. H. Hinricks.The Economics of Agricultural Development. By J. W. Mellor.

BOOK REVIEWS

Book reviewed in this article:Household Capital Formation and Financing, 1897–1962. By F. Thomas Juster.Money and Conquest: Allied Occupation Currencies in World War II. By Vladimir Petrov.Prosperity and Unemployment. Edited by Robert A. Gordon and Margaret S. Gordon.Toward Full Employment in Our Free Enterprise Society. By Morris A. Copeland.Regional Accounts for Policy Decisions. Edited by Werner Z. Hirsch.The Tenement Landlord. By George Sternlieb.Foundations for Financial Management: A Book of Readings. Edited by James Van Horne.A Theory of Financial Analysis. By Eugene M. Lerner and Willard T. Carleton.The Scope and Methodology of Finance. By J. Feed Weston.Working Capital Management. By William Beranek.Valuation: Concepts and Practice. By Erich Helfert.The Term Structure of Interest Rates: Expectations and Behavior Patterns. By Burton Gordon Malkiel.Liquidity Preferences of Commercial Banks. By George R. Morrison.Monetary Theory and Policy. Edited by Richard S. Thorn.Analytical Methods in Banking. Edited by Kalman J. Cohen and Frederick S. Hammer.The Commercial Paper Market. By Nevins D. Baxter.Insider Trading and the Stock Market. By Henry G. Manne.Money, Banking, and Credit in Eastern Europe. By George Garvy.Forward Exchange, Speculation, and the International Flow of Capital. By Herbert G. Grubel.International Finance for Multinational Business. By Lee C. Nehrt.Intergovernmental Fiscal Relations in the United States. By George F. Break.Effects of Corporation Income Tax. Edited by Marian Krzyzaniak.A General Theory of Tax Structure Change During Economic Development. By Harley H. Hinrichs.

A General Theory of Tax Structure Change During Economic Development.

A General Theory of Tax Structure Change During Economic Development.

A General Theory of Tax Structure Change during Economic Development

A General Theory of Tax Structure Change during Economic Development

A General Theory of Tax Structure Change during Economic Development. Harley H. Hinrichs

<i>A General Theory of Tax Structure Change during Economic Development</i>. Harley H. Hinrichs

Changes in Tax Structure Probed

Changes in Tax Structure Probed

Le système fiscal et certains aspects de la croissance économique

The fiscal system and certain aspects of economic growth. The object of the article is to determine the effect of various fiscal systems on the supply of labour, risk and investment, the volume of government expenditure and of the public debt being given. Income tax exerts two influences on the supply of labour : a «warning effect» making for a reduction of effort , a «payment effet» encouraging increased effort in order to compensate the loss of income due to the payment of tax. If the rates applied to the lower ranges of income are increased, and those applied to the higher ranges reduced, the payment effect is increased relative to the warning effect and the supply of labour is increased. Income tax reduces risk defined as the degree of dispersion between the profit and loss of a speculation, but less than proportionally to the rate of tax. Consequently, it encourages speculation with little risk. But if the taxpayer has other sources of income and can deduct his losses, the risk will be reduced in the same proportion as the rate of tax and more risky investments will be encouraged. Rapid amortization, allowed on the basis of income tax, encourages new investment but only if the rates of tax are high and the volume of marginal investment projects considerable. These conditions are not fulfilled during a depression. During a period of expansion the stimulus exists but is only justified if the production of consumer goods is excessive. But changes in tax structure will only have effect on growth if taxes are sufficiently high to create a reaction on the part of the taxpayer.

Some Suggested Changes in the Corporate Tax Structure

Some Suggested Changes in the Corporate Tax Structure