Differences In Tax Burden Research Articles

The VAT in practice: equity, enforcement, and complexity

The value-added tax (VAT) is meant to be an efficient and self-enforcing tax on consumption. Yet, being a rather sophisticated tax, the VAT can also be complex and costly to administer. By examining the case of Rwanda, this paper assesses the extent to which the VAT’s potential materialises in the context of a lower-income countries. Using a mixed-methods approach, which combines qualitative information from focus group discussions with the analysis of administrative and survey data, this paper makes two contributions. First, it documents reporting inconsistencies in VAT data, providing new evidence on how weak capacity prevents tax administrations in lower-income countries from reaping the full benefits of the VAT. Second, it shows that the VAT, as applied in practice, differs substantially from its theoretical functioning. This generates differences in tax burdens across firms, despite a proportional tax rate, with important distributional implications. We also document that the VAT chain often breaks down, with implications on the VAT’s efficiency.

THE IMPACT OF BALANCING DOMESTIC AND FOREIGN TAX SYSTEMS ON ALLEVIATING TAXPAYERS' INEQUALITY AND ANXIETY

Abstract Background The economy of China has gotten impressive change in recent years, to which personal income got many times higher than before correspond. Global economy also had a great impact to China. There are more foreigner applied China’s Visa and work or live in China. How could their personal income income be levied, same or different with Chinese? Same or different with previous income tax policy? Personal income tax is the most concern of all natural taxpayers, which is directly related to the amount of personal net income, which impacted the living cost plan. Under the current situation that China strengthens the introduction of returnees who have gotten great achievement in certain business and research field and the tax administration of personnel outside the enterprise, there are now a large number of domestic and overseas taxpayers in group of the natural taxpayers. However, from 1998 to now, due to the personnel income huge gap between domestic and foreigner who were invited to work in China, there have been policy differences between domestic and foreign personnel in China's personal income tax payroll and salary foreign-related tax policies, which has resulted in the psychological inequity of taxpayers and caused the psychological inequity and social anxiety of domestic personnel. Subjects and Methods In this paper, the official tax data is selected, and the case of Appendix 4 in S.D.S.H. [2014] No. 65 document is taken as an example to use specific income data to generate different tax burden differences and impacts on the differences between domestic and foreign taxpayers under the same income, shows the unfair consequence according the present personal income tax policy. Results From these tax differences, it is found that there are still some problems in China's tax policy corresponding to personal income tax wages and salaries, such as tax unfairness caused by repeated deductions, additional deductions and tax exemption items for foreigners, which negatively affect the efficiency of talent policy, etc., and the psychological unfairness and social anxiety to domestic taxpayers are discussed. Conclusions Finally, the policy suggestions to improve the tax policy and link taxpayers' psychological injustice and social anxiety are put forward: According to the new talent policy which induced the high-level experts despite of their nationalities and the change of economic environment in which China’s GDP have been almost the advanced country group and individual income went up higher, China should make the fair tax policy, avoid repeated deductions, cancel additional deductions and tax exemption items for foreigners, and improve the corresponding tax system from the perspectives of improving tax fairness and efficiency, maintaining tax neutrality and simplifying the tax system. The range of data income levels selected in this paper is not comprehensive enough, and there is no specific research on ultra-high income groups.

La mobilisation des ressources fiscales en Afrique subsaharienne: quel rôle des flux financiers illicites?

L'objectif de cet article est d'analyser la contribution des flux financiers illicites aux écarts de taux de pression fiscale en Afrique subsaharienne. Notre échantillon est constitué à la fois de 18 pays coopératifs et de 12 pays non coopératifs en matière de lutte contre le blanchiment des capitaux et le financement du terrorisme. L'utilisation de la décomposition d'Oaxaca-Blinder, montre que la différence en termes de flux financiers illicites explique les écarts de pression fiscale.

Indirect Tax Burden of Regional Residents: Study on Long Term MRIO Model

AbstractInvestigating the indirect tax burden of residents is an important way of understanding the effect of tax on income distribution and the tax burden transfer. In this paper, a long term MRIO model is constructed by using the regional input-output tables in China. We simulate the flow of value-added tax, consumption tax and business tax in different departments of 30 provinces (except Tibet) in mainland China from the perspective of rows in the IO table, we obtain the real burden of three indirect taxes on urban residents, and discuss the transfer of tax burden among regions. The conclusions are as follows: There are large differences in tax burden among regions. The real tax burden shifted from the eastern region to the middle and the western regions. Indirect tax aggravates the income inequality of urban residents in different regions. The indirect tax in China has a certain degree of regression. Based on the empirical analysis, we think the government should make the following policy changes: 1) Giving more consideration to the consumption terminals; 2) Adjusting preferential policies of regional taxation; 3) Increasing the amount of preferential policies for the western region.

A Study on the Improvements and Tax Burden Differences by Pension Deduction Types

A Study on the Improvements and Tax Burden Differences by Pension Deduction Types

International Taxation and the Role of Organizational Form Choices for Group Structures Multinationals

We examine the effect of tax burden differences between organizational forms on multinationals choosing an organizational form for a newly established foreign affiliate. Analyzing micro-level data on inbound foreign direct investment relations in Germany, we find that a higher tax burden on foreign income earned in a corporate subsidiary significantly increases the tendency of a multinational to choose a non-corporate flow-through. Income-shifting opportunities, industry-specific risk, country-level differences in regulatory quality, and host-country experience moderate this effect and thus shape the cost-benefit relation of organizational forms in cross-border settings. In addition, we document that multinationals establishing a new affiliate as a flow-through on the basis of a tax benefit invest less in that affiliate and exhibit a more complex group structure. Taken together, our results provide evidence on how tax rules shape group structures of multinationals and suggest that an asymmetric taxation of organizational forms has economic consequences.

A New Perspective on Regional Tax Burden Differences in China

AbstractRegional tax burden difference is related to regional sustainable development and social interests balance. Based on the calculation of the tax burden of 31 provinces and cities in 1995–2013, this paper puts forward that the over-statement of GDP is an important reason that causes the deviation of tax share and economic share. By using spatial econometric method, the results show that the economy as a whole is overvalued; investment in fixed assets, the proportion of secondary industry and state-owned economy have positive effects on regional GDP overestimated; per capita income and R&D have significantly negative effects on regional tax growth. Besides, the regional tax burden has spatial autocorrelation characteristic. This paper explains the abnormal difference of regional tax burden from a new perspective.

A New Perspective on Regional Tax Burden Differences in China

A New Perspective on Regional Tax Burden Differences in China

Are Worker-Managed Firms More Likely to Fail Than Conventional Enterprises? Evidence from Uruguay

Various theories suggest that worker-managed firms (WMFs) are prone to failure in competitive environments. Using a long panel of Uruguayan firms, the author presents new evidence on firm survival by comparing WMFs with conventional firms. After excluding microenterprises and controlling for differences in the effective tax burden faced by the two types of firms, the hazard of dissolution is 29% lower for WMFs than for conventional firms. This result is robust to alternative estimation strategies based on semiparametric and parametric frailty duration models that take into account unobserved firm-level heterogeneity and impose a range of distributional assumptions about the shape of the baseline hazard. The higher survival rates of worker-managed firms seem to be associated with their greater employment stability. This evidence suggests that the marginal presence of WMFs in actual market economies cannot be explained by the fact that these firms are less likely to survive than conventional firms

The Relative Ability to Tax Coal in the Western States

Over the past decade, state governments have begun to acknowledge an implicit relationship between states in the tax-setting process. The recent taxation literature suggests that differences in tax burdens do affect economic decisions and that states do compete with each other when designing tax policy. Moreover, there has been a growing interest in the theoretical models of strategic interactions between regions as they compete for tax revenues. Natural source-laden states enjoy an advantage in the collection of own-source revenues. Reserves of coal, oil, copper, or other natural resources with a national market provide states with an opportunity to exploit their advantage through the imposition of severance taxes. The purpose of this study is to examine the relationship between the western states in their relative power to tax the extraction of coal. In section II of this paper we examine earlier work on the taxation of western coal. Section III contains the details of the coal model we use. In section IV we determine the composition of the western coal market and the strategic tax-setting behavior of the state governments involved. In section V we discuss our empirical results. 17 refs., 2 tabs.

Analyzing Welfare Effort: An Appraisal of Comparative Methods

How do we measure and rate the social welfare efforts of nations? Most people consider the U.S. and Japan welfare laggards when compared with European countries. This view derives from a widely used measure of “welfare effort”—direct government outlays for social programs as the percentage of a nation's gross domestic product (GDP). This article challenges several assumptions implicit in the conventional measure and suggests an alternative approach in assessing “welfare effort.” By incorporating indirect tax expenditures and controlling for the differences in tax burdens and social need for welfare spending among countries, the alternative measure (the NET index) not only broadens the conceptual boundaries of welfare effort, but also affords a more meaningful standard for comparative analysis. To illustrate, this study compares the welfare effort levels of ten developed nations measured under several versions of the NET index.

TAXES AND INCOME: A MICROUNIT ANALYSIS

The paper details the methodology used and the results obtained in a recently completed study of the total U.S. tax burden based on microdata survey files. The method of constructing the data base—the 1966 MERGE file—is discussed, and the needed imputations and adjustments to income and taxes to bring the file totals up to national income aggregates are described. An explanation is included of adjusted family income, a unique income concept used in the study to measure and compare tax burdens.The study involved the evaluation of errective tax burdens under eight different assumptions regarding the incidence of the various major taxes. Those assumptions are detailed and the results of the study are presented. The essential conclusion of the study is that the overall impact of the tax system is virtually proportional for 90 percent of the families in the United States regardless of the incidence assumptions used. However, substantial differences in tax burdens were found among various subgroups of the population.

Tax Burden Differences in Kentucky

Tax Burden Differences in Kentucky