History Of Taxation Research Articles

The Tax Disadvantage Of Ordinary Income: An Event Study On The Legislative Process Of JGTRRA

The Jobs Growth and Tax ReliefReconciliation Act of 2003 (JGTRRA), signed into law by President George W.Bush, was a significant legislation in recent tax history. As the tax rates on capital gains anddividends are reduced to a historical low of 15%, U.S. stock prices haveincreased and the cost of equity capital declined after its passage. In contrast to the dividends and capital gainsthat receive preferential tax rates under JGTRRA, yields from U.S. Treasurybill remain tax-disadvantaged as ordinary income at a top marginal rate of 35%.Using an event study approach based ontwo years of Treasury yield observations, the author examines Treasury yield reactionsto major legislative events surrounding the passage of JGTRRA. The result suggests that a tax policyintentionally favoring dividends and capital gains over ordinary income may unintentionallypush up yields in the Treasury bill market, thereby affecting the cost ofgovernment borrowing.

The Tax Benefit of Income Smoothing

A worker can contribute pre-tax dollars to a private pension plan. Under a progressive tax, this feature reduces income taxes. Ippolito (1986) argues that an individual in 1979 can reduce lifetime taxes by 20%. We re-examine his analysis using the complete time-series of US income tax history and find that the tax benefit of income smoothing is much smaller.

Tax forecasting based on Adaboost algorithm and BP neural network

In view of the lower accuracy of traditional tax forecasting models,the authors put forward a method of combining the Adaboost algorithm with BP neural network to forecast revenue.Firstly,the method performed the pretreatment for the historical tax data and initialized the distribution weights of test data;secondly,it initialized the weights and thresholds of BP neural network,and used BP neural network as a weak predictor to train the tax data repeatedly and adjust the weights;finally,it made more weak predictors of BP neural network to form new strong predictors by Adaboost algorithm and forecasted.The authors also carried out simulation experiment for the tax data of China from 1990 to 2010.The results show that this method has reduced the relative value of mean error from 0.50% to 0.18% compared to the traditional BP network,has effectively reduced the effect when single BP gets trapped in local minima,and has improved the prediction accuracy of network.

Cross‐National Inequality Trends Using Historical Tax Return Data

Review of Income and WealthVolume 59, Issue 3 p. 568-571 Book Review Cross-National Inequality Trends Using Historical Tax Return Data Jeff Larrimore, Jeff Larrimore jeff.larrimore@jct.gov Joint Committee on Taxation, 593 Ford House Office Building, Washington DC, 20515 USASearch for more papers by this author Jeff Larrimore, Jeff Larrimore jeff.larrimore@jct.gov Joint Committee on Taxation, 593 Ford House Office Building, Washington DC, 20515 USASearch for more papers by this author First published: 03 May 2013 https://doi.org/10.1111/roiw.12046 Note: All opinions expressed in this article are those of the author and should not be attributed to the Joint Committee on Taxation or any Member of Congress. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Volume59, Issue3September 2013Pages 568-571 RelatedInformation

Institutionalizing Local Property Tax in China - as Revenue-Service Link and Tool for Higher Efficiency and Accountability via Public Choice

With progress of the housing reform that started in the late 1990s, “home ownership” (with property rights and transferability on the market) among the Chinese people has been increasing rapidly. In the early years of this century, the Chinese government placed on its agenda a new reform to adopt the “real property tax”. At that time, the tax on “real property”, a concept in the Chinese context that covers the structure but not the land on which the structure stands, was called the wuye tax (物业税, which referred only to the structure on the land or the housing unit, for distinction from the real property tax). In October 2003, the Chinese ruling party made a decision “to reform current taxes and charges on real estate, and levy a wuye tax (real property tax) when it is necessary while eliminating related charges”. At that time, the goal of the wuye tax reform was to rearrange the taxes on transactions and possession of real properties. Also, the central government hoped to make the wuye tax an important revenue source for local governments and to rationalize intergovernmental fiscal relations between the central, provincial, and other local governments. From 2003, as China’s economy gradually steps out of the Asian economic downturn that started in 1998, the real property market entered a period of rapid expansion. However, speculation in real property was rampant. In the last 10 years, the price of real property in most cities more than tripled. This problem was more severe in metropolitan areas, such as Beijing, Shanghai, and Guangzhou. Meanwhile, local governments obtained large amounts of revenue from selling the use right of state-owned lands. In response to this abnormal market, the central government frequently adopted monetary, fiscal, and administrative measures as an effort to regulate/control the market. It was against this background that Shanghai and Chongqing, two metropolitan areas, began to levy a real property tax on residential housing from January 28, 2011. As expressed in official documents, the short-term goal of this new tax is to curb sky-rocketing housing prices. Beyond this apparent target, we assume the Chinese central government may be “muddling through” in an effort to determine whether the property tax can be a stone that shoots multiple birds. Among these birds are stable own-source revenue for localities, readjustment of intergovernmental relations, and improvement of local governance in the long term. If we are correct in making this assumption, then the pilot local tax prepares China for some fundamental reform in tax administration, local governance, and government structure in the next few decades in China.In this monograph we argue that the local property tax is one candidate as the “magic” stone; the installation of local property tax can help solve multiple problems that are deep rooted in the society and entangled with many previous reform measures. Our analyses unfold as follows. Section one offers a three-stage framework of China’s financial reforms. Its focal point is that China is now in the third stage wherein it needs to reform the underlying operating mechanisms in order to improve local governance. Section two defines modern real property tax and explains why China urgently needs to introduce this tax as an institution. Section three traces the history of real property taxes in China and compares them with modern real property tax in developed countries. Section four considers the requirements and background of implementing the modern real property tax. Section five analyzes the pilot real property tax in Shanghai and Chongqing and compares them with counterparts in China’s history and the modern real property tax. Section six describes the practice of pilot real property tax in the two metro cities and the effects of the pilot tax on fiscal revenue and housing price. Section seven offers the outcome and analysis on the surveys of residents and government officials on their perception of the pilot tax. Section eight highlights a comparison between two frameworks that have appeared in China. Under the first, local governments depend on land transfer fees to finance infrastructure, and under the second, localities shift to real property tax. Section nine conducts a simulation of real property tax that can be collected with a broader tax base and lower tax rate. Section ten concludes with policy recommendation for the Chinese government in its effort to conduct the third stage of financial reform and improve local governance.

Foreword: The Income Tax at 100

This paper was written as part of a Symposium that celebrated the 100th anniversary of the U.S. income tax. It served as the Foreword for an issue that collected the papers from that Symposium. It includes a brief history of the income tax as well as comments on the role of the corporate tax, international taxation, taxation and inequality, and politics and taxation.

Source Rule for Capital Gains from Stock Sales – History and Evolution

This article firstly explores the historical tax practices in determining the source of capital gains from share sales, and then goes on to cover the evolution of the rule in international model conventions. The author also proposes a solution to the challenges posed by the current source rule for such gains.

Tax Cuts for Whom? Heterogenous Macroeconomic Effects of Income & Payroll Tax Changes

This paper investigates how tax changes for different income groups affect macroeconomic activity. Using historical tax return data from NBER’s TAXSIM, I construct a measure of who received (or who paid for) postwar tax changes for each income and payroll tax change that Romer & Romer (2010) classify as exogenous. At the national level, I aggregate tax changes for all taxpayers in the the bottom 90% and the top 10% of AGI and relate these aggregates to output, employment, and consumption growth. At the state level, I construct Bartik instruments for state tax shocks using national tax changes and each state’s share of high income taxpayers. If tax cuts for high income earners generate substantial economic activity, then states with a large share of high income taxpayers should grow faster following a tax cut for high income earners. I find that the negative relationship between tax changes and real GDP growth over a two year period is almost entirely driven by tax changes for lower income groups. The empirical relationship between tax cuts for the top 10% percent and job creation is negligible in magnitude, statistically insignificant, and much weaker than that of equivalently sized tax cuts for the bottom 90%.

Tax History Project

Tax History Project

A Severance Tax Revenue Forecast Model for Louisiana

Most states levy severance taxes on the value of natural resources when they are severed or extracted from the ground or subsurface. In Louisiana, severance tax on oil and gas production contributes to the majority of mineral revenue in the state, and over the last decade, has ranged between $400 million and $1.1 billion, or between 5 and 9% of annual state revenue. The purpose of this article is to develop a forecast model for severance tax revenue to better understand the severance tax regime and to assist in state budgeting and planning purposes. We couple an oil and gas production model with empirical relationships describing historical severance tax receipts to perform the forecast. We demonstrate that oil production correlations are robust, but that in recent years, unconventional gas production from the Haynesville shale has led to a significant departure from historic trends. We estimate that cumulative oil and gas severance tax revenues during 2011–2015 will range from $1.0 to $2.1 billion for oil and $1.3–$1.9 billion for gas. Louisiana is transforming into a gas-producing state, and more attention needs to be paid to tax design and the impact of exemptions on future severance revenue receipts.

Financing the American Civil War: Developing new tax sources

The American Civil War was expected to be short and financed through additional borrowing. As Northern military setbacks mounted, it became obvious that the war would be long, bloody, and expensive. Annual federal budgets called for increased taxes to partially finance the rising costs. The Revenue Act of 1862 created innovative new tax sources and increased revenues dramatically. Tax innovations included the first federal income and inheritance taxes, the creation of the Office of Internal Revenue, and the use of adhesive revenue stamps. This article describes the political strategies and financial battles of the Civil War and post-war period, with particular focus on the Office of Internal Revenue and the introduction of new tax sources at the federal level. The major Civil War era innovation was the introduction of the federal income tax, including how to calculate taxable income and how tax collections were operationalized. The political and financial history of the income tax is a major focus of this article.

Distribution of Stock and Section 306 Stock

The contributed material consists of a chapter on stock dividends and preferred stock bailouts from the Concise Hornbook, Principles of Corporate Taxation (2010). The material explains what is meant by a “stock dividend”and explores the historical tax treatment of those dividends as well as the current treatment. The chapter notes how alternative devices might be used to accomplish consequences that are effectively the same as those that flow from a stock dividend and how the tax laws deal with those equivalent transactions. The several exceptions to exclusion from income are described and illustrated by the use of examples. The rules regarding the determination of the basis of both the old and new stock are examined. The previous use of preferred stock to bail out a corporation’s earnings is demonstrated, and the current rules to prevent the abusive use of so-called “preferred stock bailouts” are examined and illustrated.

Death Taxes In The United States: A Brief History

<p class="MsoTitle" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">Death taxes have been used in various forms in the United States, from a simple stamp tax to the complex estate tax currently in use. On June 7, 2001, President George W. Bush signed legislation that would abolish the federal estate tax in 2010. This would end a 200 year history of death taxes in the U.S., at least for one year, unless Congress changes that legislation. Experts are still debating whether Congress will take such action.<span style="mso-spacerun: yes;">  </span>This paper examines the history of death taxes, including stamp taxes, inheritance taxes, and estate taxes, in the U.S. and the reasons that death taxes were enacted. They were usually enacted as revenue raising provisions, but some feel that their potential for redistributing wealth is a better reason for their existence. This paper also examines the current estate tax and why such a tax on the wealthy has had the support of several wealthy and influential individuals.</span></span></p>

Goethes politisches Denken und Handeln im Spiegel seiner Amtlichen Schriften: Eine politikwissenschaftliche Analyse (review)

Wolfgang Poliert, politisches Denken und Handeln im Spiegel seiner Amtlichen Schriften: Eme pofitikwissenschaftliche Analyse. Munich Akademischer Verlag Munchen, 2004. 349 pp. Goethe's Amtliche Schriften document in great detail the many responsibilities he undertook during his public service in which began in 1776 and continued for decades following his return from Italy Whether one is familiar with this side of or desires to learn more about it, Wolfgang Poliert provides a welcome contribution to this area of studies, one which still remains largely unexplored. As the title suggests, Pollert's study is not a literary analysis. While there are a few brief references to Faust, West-ostlicher Divan, and the Wilhelm Meister novels, the author concentrates primarily on Goethe's official writings and related texts. He situates them within the larger contexts of both Weimar and Goethe's lifelong engagement with politics. The first five sections, which vary substantially in length, cover the following topics: Der historische Hintergrund, Goethes Jugendzeit, Von Frankfurt nach Weimar, Goethe und die Politik uberhaupt, and Goethe in politischen Amtern.These eighty-seven pages provide a backdrop against which to view Goethe's decision to accept the position of Geheimer Legationsrat offered to him by the then eighteen-yearold Duke Carl August, eight years his junior. The last of the sections listed above gives a concise summary of Goethe's duties during the decade leading up to his Italian trip. In addition to his seat on the Privy Council (Geheimes Consilium), was tasked with overseeing the Bergwerkskommission.Wegebaudirektion, Kriegskommission, and Hmenauer Steuerkommission. Throughout his study, Poliert emphasizes Goethe's prowess in financial matters, which he utilized with respect to his duties in Hmenau, where he dealt extensively with taxation and the revival and operation of its mine. Goethe's efforts to revive the mine at Ilmenau represent his greatest undertaking during his time as a public official. Poliert dedicates a lengthy section to Goethe, Ilmenau und die praktische Politik, in which one sees the trials and tribulations associated with this mining venture. first visited the mine in 1776 during his first of twenty-eight trips to Ilmenau. On February 24, 1784, residents celebrated the reopening of the mine, and gave a short speech. After a religious service the locals and their children proceeded to the groundbreaking ceremony. Poliert describes Goethe's role as follows: Schreiber reichte eine bergmannische Keilhaue, mit welcher der Herr Geheimrat den ersten Hieb vollbrachte, worauf die Menge eine dreimaliges 'Gluckauf ausrief. Anschliesend wurde aus jedem Stande einer zum Hieb mit der Keilhaue aufgefordert, auch die Kinder musten sich beteiligen (103). Unfortunately for all involved, neither religious conviction nor good fortune would lead to the lasting success of the endeavor. A combination of fiscal problems and an underground collapse ultimately brought about the end of the Ilmenau mine. As noted above, also oversaw tax matters in Ilmenau. Goethe's Amtliche Schriften in this area show his interest in the history of taxation as well as his efforts to simplify the tax system, which was inefficient, had been prone to abuse by tax collectors, and unduly burdened the poor. …

Dampak Perubahan Undang-Undang No. 36 Tahun 2008 terhadap Penerapan PPH Potong Pungut pada Perusahaan Jasa Cleaning Service (Studi Kasus pada PT. Jasa Mulia Iramandiri)

The introdution described about the history of income tax, the book observation concerning about the meaning of Tax and the chronological alteration of the Income Tax regulations. Research Method described the structure of PT. Jasamulia Iramandiri, along the literature using research data as a secondary data The comparison between the old Law on the new Act has some interesting differences to explore, also elucidate between Old law dan the New Law of Income Tax concerning PPh 21,23,and 25. This discussion are simulate the calculation of Income Tax Law chapter 21 in two version the old and newest Law, also the impact of the Law alteration to accounts on the financial statement.

O Imposto sobre circulação de mercadorias e o instituto da seletividade

The aim of this paper is to present the selectivity institute that Item III of Paragraph 2 of Article 155 of the Federal Constitution provides for taxable purposes by Tax Operations Related to the Circulation of Goods and on Services of Interstate and Intermunicipal Transportation and Communication (ICMS). It seeks to demonstrate that the selectivity institute, which many call principle, can be an instrument of realization of tax justice and, thereby, contribute to reaching the full ideal of justice worthy of a democratic state of law. To do so, present some considerations about the history of taxes in Brazil; briefly and generally are presented regulatory frameworks of tax and present data on its role and importance in the economic sphere of the state and taxpayers. Finally, some considerations about the contribution that the institute provides for effective cooperative federation in Brazil and to strengthen the principle of ability to pay.

O imposto sobre circulação de mercadorias e os instituto da seletividade

The aim of this paper is to present the selectivity institute that Item III of Paragraph 2 of Article 155 of the Federal Constitution provides for taxable purposes by Tax Operations Related to the Circulation of Goods and on Services of Interstate and Intermunicipal Transportation and Communication (ICMS). It seeks to demonstrate that the selectivity institute, which many call principle, can be an instrument of realization of tax justice and, thereby, contribute to reaching the full ideal of justice worthy of a democratic state of law. To do so, present some considerations about the history of taxes in Brazil; briefly and generally are presented regulatory frameworks of tax and present data on its role and importance in the economic sphere of the state and taxpayers. Finally, some considerations about the contribution that the institute provides for effective cooperative federation in Brazil and to strengthen the principle of ability to pay.

Structural Flaws of Income as a Base for Taxation

This article discusses Ross Parsons’s influential Wilfred Fullagar Lecture “Income Taxation – an Institution in Decay” (1986) 3 Australian Tax Forum 233, in which Parsons opined that the considerable analytical shortcomings of the concept of income stem from income tax adopting the concept of income from the law of trusts, which is based on principles that are different from and irrelevant to the policies and imperatives of income tax law. An exploration of the history of income tax shows that the origin of the judicial concept of income as a tax base in fact stems from the income tax of 1799, which inherited the concept of income as a regular flow that is measured annually. However, the author agrees that the concept of income is fundamentally flawed. The ectopia of tax law comes about because tax law generally taxes the results of legal transactions rather than their underlying economic effects. Furthermore, the law must make a number of assumptions that are not in fact correct, which removes the base that the law taxes even further from the economic reality of the case.

We Won, You Lost, Eat That!: A Political History of Tax in New Zealand since 1840 – By Paul Goldsmith

We Won, You Lost, Eat That!: A Political History of Tax in New Zealand since 1840 – By Paul Goldsmith

Tax Culture, Tax History, and the Limits of Convergence: A Comment on Professor Likhovski's Article

Article Tax Culture, Tax History, and the Limits of Convergence: A Comment on Professor Likhovski's Article was published on June 30, 2010 in the journal Theoretical Inquiries in Law (volume 11, issue 2-Forum).