Concept Of Income Research Articles

Why an Unconditional Basic Income is Highly Problematic – General Considerations and Quantitative Implications for the Case of Germany

Abstract The concept of an unconditional basic income is not new, but it is still the subject of much controversy. This paper looks at the quantitative effects of introducing an unconditional basic income, using Germany as an example. It examines the financial implications and other major problems of an unconditional livable income measure. The analysis shows that an unconditional basic income at the level generally called for by its proponents would require massive tax increases and thus a substantial redistribution of income from the middle and upper ends of the income scale downward.

An Integration of Neoclassical Growth Theory and Economic Structural Change with Monopolistic Competition Theory

Wealth accumulation is a deterministic factor mechanism of national economic growth. Neoclassical growth theory is basically concerned with capital and wealth accumulation in perfectly competitive market. Global markets are characterized by a great variety of markets. Nevertheless, there only a few rigorous models of wealth accumulation with other types of markets within neoclassical growth framework. This study attempts to contribute literature of economic growth by introducing monopolistic competition and monopoly into neoclassical growth theory. The model is based on a few well-established economic theories. The model is constructed within framework of the Solow-Uzawa two-sector neoclassical growth model. The description of to monopolistic competition is influenced by the Dixit-Stiglitz model of monopolistic competition. The modelling of monopoly is based on monopoly theory. We model behavior of the household with Zhang’s utility function and concepts of current income and disposable income. The unique contribution of this research is to integrate these theories in a comprehensive framework. We construct the basic model and then analyze properties of the model. The existence of a unique equilibrium point is identified by simulation. The effects of changes in some parameters comparative static analyses in some parameters.

Russian Experts on Universal Basic Income: Estimates for 2020

The article presents the main results of a survey of Russian experts conducted in 2020 with the participation of the authors among representatives of the research community, leading universities, the business community, trade unions and state and municipal government bodies regarding the main theoretical and methodological aspects of the concept of universal basic income (UBI) in relation to Russian conditions, the feasibility of its introduction in Russia, as well as the main parameters of possible transitional forms of UBI for Russia. The palette of the obtained expert assessments, generalized and systematized in the following areas, is shown: 1) UBI criteria; 2) Russia's readiness for the introduction of UBI; 3) current challenges for Russia (priority goals of the introduction of UBI, forms of implementation, sources of funding, method of implementation, experiments on the introduction of UBI); 4) risks and positive effects of the introduction of UBI. It was revealed that a common position among experts regarding Russia's readiness to introduce UBI has not yet been formed: almost half of the interviewed experts spoke in favor of the feasibility of implementing transitional forms of UBI in our country, a slightly smaller group of experts believes that Russia is not ready to introduce UBI in principle. Experts associate the primary goals of the possible introduction of UBI in Russia, first of all, with the mitigation (overcoming) of the problems of poverty and socio-economic inequality, ensuring a minimum standard of living for vulnerable categories of the population, ensuring social justice (the right to life, equal opportunities). Support for the idea of implementing a pilot project (projects) for the introduction of UBI was revealed. The opinions of experts on the target categories of the population during the implementation of experiments on the introduction of UBI, the methods of their formation, and the duration of pilot projects were obtained.

Illegal income as an object of taxation in law of the Russian Federation and the United States

One of the perpetual problems within the Russian and U.S. tax law is the establishment of criteria for taxability of income, under what conditions the income of a taxpayer should be taxable. The fact   the legislation nor the rulings of supreme courts contain a clear answer to this question, leads to the emergence of legal uncertainty on the tax consequences of receiving illegal income. The goal of this research lies in examination of problem of taxation of illegal income, including the questions of bringing to tax and criminal liability for tax evasion on illegal income, as well as in substantiation of a new solution to this problem. For achieving this goal, the author analyzes the Russian and U. S. case law on taxation of criminal and other illegal income. Although such practice is not always consistent, the merit of the court includes the development of classical theory of the object of income taxation. Namely, the Supreme Court of the United States formulated the well-known concept of taxable income and the rule on “right of claim”. The author believes that the grounds for distinguishing between taxable and non-taxable income is the criterion of economic benefit. The strict application of such criterion for the assessment of tax consequences from receiving illegal income led the author to a conclusion that contradicts the interpretations of the Russian and U. S. courts: only the economic benefit from the free use of the property, rather than the overall value of such property,  should be recognized as the object of taxation should be recognized. The concept proposed by the author can be used in the practice of tax and judicial authorities for ensuring subjective rights and legitimate interests of taxpayers.

УПРАВЛЕНИЕ ДОХОДАМИ И РАСХОДАМИ ПРЕДПРИЯТИЯ: ПОНЯТИЕ, КЛАССИФИКАЦИЯ И ПОРЯДОК ОТРАЖЕНИЯ В УЧЕТЕ

In the article, the authors highlight the concept and classification of income and expenses of an enterprise, the author's polemic on the concept of income is presented. The order of reflection of income and expenses in accounting is considered.

The Measure of the Middle Class

The term, ‘middle class’, is constantly used to describe some average group of individuals, households or families. Various definitions and measures are used within the public policy, media and academic arenas. And, yet, there is no definitive consensus as to what middle class means or how to measure it. It seems that there are a number of nuances to the concept of the middle class that may not lend itself to direct measurement, outside of specialized surveys. The most common approach to defining and measuring the middle class is through the use of some form of income. Generally the concept of the money income seems to the broadest and most useful, through it presents certain problems upon closer examination. Other metrics used or proposed include wealth and consumption. Wealth as a metric is often of interest especially where there is concern over inequality. The consumption metric is more directly related to income, but the manner in which it is defined and collected is where it may present certain advantages over income. There are more subjective aspects of this topic which is often used to better identify those belonging to the middle class. Its qualitative nature makes it difficult to measure on some consistent basis. However, it seems that this area needs further exploration. The purpose of this paper is not to delve into the areas of poverty or inequities of the income or wealth distribution. It sole purpose is to attempt to examine the definition of middle class that may lead to a useful metric to measure it. As to the various metrics available, an examination of the standard ones will be made, as well as some non-standard ones. The paper's objective is to highlight which metrics may be most appropriate and what changes should be made to provide a more robust method of measuring the middle class. Assuming one can define, albeit imperfectly, a middle class, then it naturally follows that a lower class and upper class will also be defined.

Could the next Indonesian income tax law adopt to the concept of income under IFRS

This study has two purposes. The first is to explore the implementation of income concepts under current income tax law (UU PPh) before and after the convergence of International Financial Reporting Standards (IFRS) in Indonesia. The second is to explore whether the new UU PPh could adopt the notion of income under IFRS. By using a qualitative approach, this study concluded that before and after IFRS convergence, the income definition under current UU PPh has never changed since its first 1983 enactment. Such condition has resulted in some income tax issues based on the ability-to-pay principle and realisation doctrine. The main problem relates to the realisation principle as part of the historical cost accounting system, whereas accounting income refers to the mark-to-market, ignoring realisation rules. The second conclusion is that the income concept under the next UU PPh can partially apply the accounting income concept because it still needs the realisation principle.

Could the next Indonesian income tax law adopt to the concept of income under IFRS

This study has two purposes. The first is to explore the implementation of income concepts under current income tax law (UU PPh) before and after the convergence of International Financial Reporting Standards (IFRS) in Indonesia. The second is to explore whether the new UU PPh could adopt the notion of income under IFRS. By using a qualitative approach, this study concluded that before and after IFRS convergence, the income definition under current UU PPh has never changed since its first 1983 enactment. Such condition has resulted in some income tax issues based on the ability-to-pay principle and realisation doctrine. The main problem relates to the realisation principle as part of the historical cost accounting system, whereas accounting income refers to the mark-to-market, ignoring realisation rules. The second conclusion is that the income concept under the next UU PPh can partially apply the accounting income concept because it still needs the realisation principle.

Libertarian Welfare: The Concept of an Unconditional Basic Income in U.S. Public Debate and Policy, 1960-1972

This paper focuses on intellectual debates and policy proposals in the United States during the 1960s and early 1970s. Various forms of a guaranteed income, including concepts of an unconditional basic income and a negative income tax, were discussed by intellectuals, economists, and civil rights advocates. After 1969, the Nixon administration considered introducing a negative income tax as an income floor for two-parent families without a means test or work requirements. At the time, such a radical policy was discussed in an open debate that may seem surprising today. While libertarian conservatives appreciated the proposal’s efficiency and restraining effect on government, progressives cherished the prospect of alleviating poverty. The problem was that Nixon, seeking to sell his policy to limited constituencies, denied or ignored his own proposal’s progressive core and instead advanced a racialized perception of welfare policy. The failure of guaranteed-income proposals in the early 1970s ossified a normative commitment to work-derived income that remains in place today.

СУТНІСТЬ ДОХОДІВ ТА ПРИБУТКУ НЕПРИБУТКОВИХ УСТАНОВ ТА ПІДХОДИ ДО ЇХ ВИЗНАЧЕННЯ

The key characteristic of the XXI century is the rapid development of productive resources and information technologies. This feature results in the fast development of new and existing forms of entities and to the globalization of their activities. Non-profit organizations, regardless of organizational and legal form, are beginning to play a significant role in the socio-political and economic life of modern states. Such organizations promote the development of civil society and freedom of speech, and they can be a tool for achieving both the long-term and short-term goals of the state, or a group of people united on a certain basis. That is why the legal and tax regulation of non-profit organizations is an important factor in their development and serves as a tool to control the activities of non-profit institutions by the state. By regulation of the kinds of non-profit activity, the state may promote concepts of national development as, for example, an increase of life term through granting non-profit status to sports clubs and defined hospitals. Such an approach, in the long-term perspective, may result in economic growth through an increase of lifecycle of productive resources. As of today, one of the most discursive categories related to accounting and taxation of non-profit organizations is the concept of profit which appears as a result of excess revenue of the non-profit organization over expenses related to the execution of the statutory activity. In this article, the approaches to the definition of the concept of profit and income of a non-profit institution were analyzed through the analysis of existing approaches to its definition applied to classical business entities, also the definition of a profit of a non-profit organization was proposed. Additionally, possible sources of income of a non-profit institution in accordance with current legislation, and the peculiarities of payment of remuneration to employees of non-profit institutions were analyzed. Moreover, based on the normative requirements of the Ukrainian state authorities the general formula for calculation of the taxable income of non-profit organizations was designed.

Certain aspects of individual income tax

The personal income tax is the main budget-forming tax, which plays a significant role in the redistribution of personal income and ensuring budget adequacy. Due to this tax, the state has the opportunity to influence the level of income and savings of citizens, it is a social regulator. The objective of the paper is to form a mechanism for collecting personal income tax in Ukraine and to study the fiscal efficiency of personal income tax and to determine the main directions of personal income tax reform. The paper considers the mechanism of personal income tax collection, which is based on the Tax Code of Ukraine and the main elements of the taxation system. It is proved that the tax system of Ukraine is characterized by instability, fiscal orientation with a limited and poorly developed regulatory function. The foreign experience of personal income taxation, tax rates and features of taxation is investigated in this paper. In foreign countries, tax rates are progressive. First of all, it should be noted that wages make up most of the income of individuals, and sometimes it is the only source of income. Taking into account the fact that Ukraine does not apply progressive personal income tax rates, this causes social injustice. It is proposed to use the concept of marginal income and not to tax income in the form of wages in the amount of the minimum amount set for each year. One of the important aspects of reforming the tax system of Ukraine is the introduction of a single reporting on personal income tax and a single social contribution filed by tax agent. It is proposed to declare income and disclose information about the property status of all individuals for the previous year. This will help to control and compare the payment of personal income tax with other tax reports and fill the state budget. Establishing a tax culture of taxpayers and their cooperation with fiscal officials requires some time, during which they must actively carry out explanatory work by fiscal officials and implement a system of preventive measures against tax evasion or concealment of income, and then apply a strict system penalties to the payer. According to this system the payer is unprofitable to hide income, as the fine exceeds its size. These measures will not only ensure the implementation of the regulatory but also the fiscal function of the tax.

The concept of other comprehensive income, its essence and composition, reflection in the financial statements

The concept of other comprehensive income, its essence and composition, reflection in the financial statements

Solution to “the Kuznets Riddle”

S. Kuznets's study that average propensity to consume is a constant value were nexpected because they denied one of basic provisions of Keynesian theory. This fact was called the riddle of F. Modigliani and M. Friedman, using hypothesis of life cycle and concept of constant income, proposed two options that explain its solution. But models should not explain, but give a method of solution. The most controversial is indicator of autonomous consumption. In first model, it grows, and in second it goes to zero. Creation of a method of simulation of consumption functions based on common methodological principles for consideration of micro and macroeconomic systems. Having constructed a model that objectively describes activity of a separate enterprise, primary and primary links of macroeconomic system, we can explore whole system. At exit of economic system we consider two functions of offer - cost and cost-price, and one demand. These functions form two types of Keynesian cross, which define two points: break-even and economic power (equilibrium In a three-dimensional space a chain of transformations is considered: profit, investments, fixed assets, growth of depreciation (constant costs) and output. The condition for formation of a proportional development economy - average propensity to consume should remain unchanged, which is achieved when marginal values of multipliers of fixed costs and return on assets are constant. Such periods were explored by S. Kuznets.

Dedução de Despesas Médicas com Reprodução Assistida da Base de Cálculo do Imposto sobre a Renda das Pessoas Físicas: Breve Análise da (In)suficiência do art. 94, § 15, da Instrução Normativa RFB n. 1.500, de 29 de Outubro de 2014

Assisted human reproduction technologies allow many people to overcome infertility in a biological sense. Access to these medical techniques is recognized, both by the Supremo Tribunal Federal and by the InterAmerican Court of Human Rights as a fundamental right which States are responsible to protect and promote. The cost of these techniques, however, is high and the Sistema Unico de Saude does not have the necessary means to guarantee full care to all who need them. The recognition of the deductibility of medical expenses with assisted reproduction techniques of the income tax constitutes a way of promoting the right of free family planning and for that reason article 94, § 15, of Normative Instruction RFB n. 1.500, of October 29, 2014 is insufficient to make the deduction rule conform to the constitutional concept of income.

Переходные формы безусловного базового дохода как реальная перспектива России

The article presents the research results aimed at developing the theoretical provisions of the universal basic income concept summarizing and systematizing the results of a survey of Russian experts conducted by the authors about its principles, the possibilities of introduction in Russia, priority population categories for testing it, assessing the reality of expanding the tools of universal basic income taking into account the development of transitional forms of its use during the COVID-19 pandemic. The work reveals the relevance of UBI concept development in the context of the need to overcome mass poverty in Russia. The result of the theoretical analysis shows that generally recognized UBI principles (universality, unconditionality, individual nature of monetary payments, their regularity) are justified by long-term trends in social policy evolution. The prospect of introducing universal basic income is presented as a qualitative transition (leap) in implementation of the latter. The social policy measures, closest to implementation of UBI principles, are characterized as its transitional forms including experiments on its introduction. To assess the practical feasibility of UBI transitional forms, the article uses the results of a survey of experts from different Russian regions conducted with the authors' participation and a pilot experiment and modeling of the results of UBI toolkit implementation. The paper proposes a possible scheme for implementing UBI tools in Russia, as well as pilot projects for low-income families with children, graduates of universities and secondary vocational educational institutions during the transition from study to the first place of work, the unstable employed (including the unemployed). The authors assess the paradox of activating the implementation of UBI principles in the context of the COVID-2019 pandemic under unfavorable financial conditions as confirming the reality of the prospects for its transitional forms for Russia. The results of the study can contribute to the development of discussions about the introduction of UBI tools in the Russian Federation, and to the promotion of its wide experimental testing for different population categories. It is advisable to continue research in the aspect of analyzing the experience of developing social support in the context of a pandemic and modeling the possible effects and costs of introducing UBI.

Economic income, historical costing income and conservatism

The paper intends to contribute at the debate on the ‘Evolutionary Advantage of Cost Accounting and Conservatism’ (Accounting, Economics and Law: A Convivium, 2019. 9. issue), founded on Braun’s study (2016) about The Ecological Rationality of Historical Costs and Conservatism. Moving from the IASB Conceptual Framework (2013) it stresses the renewed interest in income concept. The economic financial crisis of 2008-9 stimulated discussions between the traditional ‘received view’ of ‘cost-revenue approach’ (historical cost accounting) and ‘balance-sheet approach’ (‘current values’ and ‘present values’, that is ‘economic values’). Revaluations of assets, liabilities and owners’ equities are consistent with the cost-revenue model as well as the discounting future income flows in order to reach sustainable economic income magnitudes and sustainable economic capital values.
 The whole function of the information system is related to decision-making and control: the ‘accountability concept’ is crucial in this regard and is part of the process for predicting future ‘economic financial situations’. Certainly historical cost is relevant part of accountability valuation; the future economic results can be better predicted by a long past segment of outcomes from all the entity activity, ‘operating incomes’ and ‘capital gains and losses’. These principles drive in the direction of historical costing (and conservatism) integrated, through ‘revaluations’, with other different methodologies, typically ‘current values’ and ‘present values’, in a unitary systematic comprehensive framework, according to economia aziendale (entity economics) school of thought.

An exploratory study of basic income fidelity index

AbstractThere is growing interest in adopting basic income as a new social protection policy in many countries. South Korea is no exception. There have been heated discussions on the benefits and costs of adopting basic income as a universal income support program among policy makers and academics in South Korea. However, one of the problems in the discourse of basic income discussion in South Korea has been a lack of clear definition of basic income. In this study, we develop a basic income fidelity index (BIFI) that can be applied to basic income programs to show how fully a program fits to the basic income concept. Such an index can be useful in making the terminologies and concepts of basic income clearer. We test feasibility of BIFI by applying it to four different case examples of basic income; Alaska Permanent Fund, UK Child Trust Fund, Switzerland’s Basic Income Plan, and Finland’s Basic Income Experiment. We show BIFI can be a useful tool to differentiate various types of basic income. It can be also used to identify strengths and weaknesses of a basic income scheme.

EFFECTIVE TAX RATES BY INCOME AND WEALTH CLASS

We use the Survey of Consumer Finances (SCF) from 1995 through 2016 to study trends in average effective tax rates across the income and wealth distribution. These average tax rates (ATRs) calculated from SCF income data are comparable to those calculated from external sources. We show that the wealthiest families have the highest ATRs, even as the income definition expands to include nontaxable sources and even though the wealthiest families are only sometimes among those with the highest annual income. However, the majority of income-producing assets held by the wealthiest are in the form of unrealized capital gains, effectively avoiding taxation. After altering the income concept to a measure of “potential income,” which incorporates changes in net worth and allows us to include untaxed increases in asset values, the wealthiest families no longer have the highest ATRs.

Unconditional Basic Income: Whether the Russian Labor Market Is Ready To Perceive This?

Today, the development of human capital follows the same approaches that have been used since the mid-twentieth century, in a completely different economic and social context. But the rapid development of the remote mode of work, freelancing, and self-employment radically change the organization of their activities. Robots and artificial intelligence perform only a small part of the work today. As the pace of automation increases, the number of employees will decrease. Moreover, it has become easier both technologically and legally. Remote work is now officially recognized, and its terms will be officially spelled out in the employment contract. The article is devoted to the issue of the possible introduction of unconditional basic income (UBI) in the practice of social services and employment services. The unconditional basic income (UBI) is considered today as a regular state payment of a certain amount of money to each member of society, regardless of where they worked or whether they worked at all. The article analyzes the trends in the labour market and their impact on the transition to the concept of unconditional basic income of the UBI. These trends are confirmed by the results of research on various aspects of this problem. Special attention is paid to the impact of the 4th industrial revolution of the 6th TU on employment, as the main condition that ensures the transition to the establishment of the UBI

Realization of the UBI Principles As An Answer to the COVID–19 Challenges

The article identifies the need to take measures to maintain stability on the labor market and develop social assistance to the population in the context of the coronavirus pandemic. It has been established, that under these conditions, a more consistent implementation of the principles of universality and unconditional provision of social transfers is required in accordance with the concept of unconditional basic income (UBI). It is revealed that these principles are most consistently implemented in Spain, where unconditional basic income has been introduced. A practice close to the use of UBI is typical for the United States and Singapore. In the number of European countries, transfers are used to employees of enterprises in crisis situations, which means the circle recipients of social assistance increase. An increase in the scale of social assistance in China with the use of vouchers for the purchase of goods was recorded, which contradicts the principles of the UBI. Progress was noted in the application of the principles of universality and unconditional social support in modern Russia. Taking into consideration, new experience, the controversial issues of unconditional basic income concept are analyzed: its potential efficiency, dependence on the level of taxes, the impact on inflation, the need for empirical verification of UBI principles. To sum ap, the progress in the implementation of these principles inherent in the UBI in modern conditions brings the prospect of its implementation closer