Impact Of Tax Burden Research Articles

Study on the Tax Burden Sharing between Supply and Demand--Based on a Perspective of Microeconomics

Although a country's tax on market goods increases fiscal revenue to a certain extent, the tax burden is borne by both the supply and demand, which damages the interests of both consumers and suppliers. In the long run, government taxes on goods hurt both producers and consumers and hurt economic growth. This paper analyzes the nature of national taxation, the impact of tax burden on both supply and demand, and the relationship between tax burden allocation and elasticity of supply and demand. At the same time, this paper analyzes that the difference between the supply and demand elasticity is the main reason for the difference between producers and consumers. Finally, this paper puts forward some suggestions and countermeasures to promote economic growth and reduce the tax burden of producers and consumers.

Fiscal instruments of impact on the economic development of countries

Іntroduction. A common measure to combat the crisis is the provision of targeted tax benefits for businesses, a temporary reduction in the tax burden on wages. However, excessive redistri­bution of GDP through the public finance system can hold back economic growth. Problem. It is important, depending on the socio-economic model and institutional features, to find the optimal configuration of fiscal policy to increase business activity, increase endogenous human potential. The aim of the article is to assess the impact of fiscal instruments on economic development and substantiate proposals to increase the effectiveness of fiscal policy. Methods. In the process of research the system approach, methods of analysis and synthesis, scientific abstraction are used. Economic and mathematical methods have also been used to quantify the impact of fiscal indicators on economic growth. Results. The impact of tax burden, public expenditures, fiscal deficit on economic growth in 23 European countries during 2012–2021 has been assessed. The structure of taxation of the European Union member states has been studied. The peculiarities of the implementation of fiscal policy in the conditions of the COVID-19 pandemic are determined. Measures to increase the effectiveness of state fiscal policy in the medium term are justified. Conclusions. Fiscal policy has a significant impact on the processes of economic and social development. In the context of the COVID-19 recession, EU countries actively used fiscal incentives to support the economy and household incomes. These measures simultaneously included increased expenditures and reduced taxes with the provision of targeted tax benefits. Over the last 10 years, the relationship between the main fiscal indicators for the 23 EU member states has been negatively correlated with economic growth indicators. This necessitates a gradual reduction in the share of public expenditure in GDP, the formation and implementation of a balanced budget that ensures macroeconomic stability. An important factor in ensuring economic development is the structure of taxation.

Tax Burden and Firm Export Behavior: Evidence from World Bank’s Chinese Firm Survey

In the context of the wave of anti-globalization, the rise of trade protectionism, and the trade friction between China and US, could China employ internal reform, such as fiscal and tax policy, to achieve the upgrading of firm export performance? Or rather, could tax relief provide Chinese firms a taxation-driving force for improving export performance? The discussion on this issue is of great practical significance.In view of this, based on the data of World Bank’s Chinese Firm Survey in 2005, supplemented by World Bank’s Chinese Firm Survey in 2012, this paper makes the first attempt to systematically explore the impact of tax burden on firm export behavior. Our main finding is that tax burden has a negative impact on firms’ export propensity, export scale, and export intensity. Furthermore, the negative impact mainly comes from VAT burden.The innovation and contribution of this paper are as follows: Firstly, to the best of my knowledge, this is the first paper to directly explore the impacts of different kinds of tax burden on firm export behavior based on the data of World Bank’s Chinese Firm Survey in 2005 and World Bank’s Chinese Firm Survey in 2012, which provides the micro evidence for verifying the substantial effect of tax burden on firm export behavior. Secondly, this paper compares the impacts of turnover tax（indirect tax） burden and income tax（direct tax） burden on firm export behavior, and finds that the negative impact mainly comes from turnover tax（indirect tax）burden, which indicates that tax structure biased toward direct tax is a better tax arrangement for export firms under the premise that the general target of taxation is determined. “Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform” adopted at the Third Plenary Session of the Party’s 18th National Congress clearly put forward that we should “deepen the reform of taxation system, perfect the local taxation base, and gradually raise the share of direct taxation”. This paper provides empirical evidence for the rationality and necessity of this reform form the perspective of stabling foreign trade. Thirdly, to get to the bottom of the origins of the negative impact, this paper inquisitively explores which kind of turnover tax（indirect tax） burden has a substantial effect on firm export behavior by comparing the impacts of VAT burden, business tax burden and consumption tax burden, and finally finds that VAT burden has the strongest negative impact on firm export behavior, followed by business tax burden and consumption tax burden, or rather, the negative impact of turnover tax burden on firm export behavior mainly comes from VAT burden. Fourthly, this paper supplements the empirical study on firm export mode by comparing the impacts of tax burden on firm direct export and firm indirect export, and finds that tax burden mainly affects indirect export. Fifthly, this paper makes the first attempt to explore the channels through which tax burden affects firm export behavior in detail, and thus systematically gives an answer to the question that how tax burden affects firm export behavior.

The Impact of Tax Burden on Enterprises’ Innovation Input——An Empirical Analysis Based on Tax Avoidance Incentives

This paper studies the impact of corporate tax burden on the next level of innovation input. Taking the listed companies in China’s GEM from 2009 to 2017 as the research object, this paper finds that the tax burden of enterprises has an incentive effect on the next innovation input level. Further research finds that, compared with state-owned enterprises, the tax burden of non-state-owned enterprises has a stronger incentive effect on the next innovation input level.

The Impact of Reforms in the Field of Labour Taxation on Dynamics of Informal Employment in Russia

The article studies the interconnection between reforms in the system of labour taxation, included in the income tax of individuals and contributions to social insurance and welfare of citizens and the dynamics of informal employment in Russia, calculated by human resource balance. The analysis leaned on the hypothesis about the exceptional impact of tax burden on the rate of informal employment, which in case of rising tax burden on the official sector acts as a tool of cutting costs for business and becomes a part of survival strategy for the population. In order to get the most reliable empiric data the dynamics of informal employment was calculated by human resource balance as a difference between the total number of those employed in economy and the average membership of the corporate sector. By the comparative analysis of labour taxation systems of OESR country-members the following conclusion was drawn: the current characteristics of the national system of taxation in the field of employment together with unfavourable factors of the home labour market push both employers and employees to informal employment. The retrospective analysis of results of the most important taxation initiatives in reducing and raising the tax burden on labour showed that resolving the problem is possible in the field of strengthening the labour market institutions together with the development and adoption of the long-term taxation policy in respect of citizens’ income of employment.

Анализ влияния налоговой нагрузки и налоговой структуры на экономический рост: опыт зарубежных стран

Анализ влияния налоговой нагрузки и налоговой структуры на экономический рост: опыт зарубежных стран