Tax aggressiveness remains a persistent concern for fiscal authorities and stakeholders, as it directly diminishes public revenue and complicates regulatory compliance. While firm-level attributes such as capital intensity, leverage, and corporate social responsibility (CSR) frequently inform discussions on tax planning, empirical consensus regarding their influence remains elusive, particularly within the Indonesian manufacturing sector. This study investigates the impact of these three determinants on corporate tax aggressiveness among manufacturing entities listed on the Indonesia Stock Exchange (IDX). Utilizing a quantitative framework, we applied panel data regression analysis to a purposive sample of 93 manufacturing firms observed between 2019 and 2024. Our analysis reveals that neither capital intensity nor CSR exerts a statistically significant influence on tax aggressiveness. Conversely, leverage demonstrates a significant negative association with tax aggressive behavior. This inverse relationship suggests that firms maintaining higher debt levels benefit from substantial interest tax shields; these deductible expenses effectively lower taxable income, thereby reducing the firm's overall tax liability. These findings indicate that leverage serves as a primary mechanism for tax management in this context. Rather than pursuing aggressive avoidance strategies, highly leveraged firms appear to prioritize the inherent tax advantages derived from their financing structures. These results offer critical implications for policymakers, investors, and corporate managers navigating the intersection of capital structure decisions and fiscal compliance.

Hospital admissions due to lower respiratory tract infections (LRTIs) and chronic obstructive pulmonary disease (COPD) represent a substantial healthcare challenge for Switzerland. Demographic shift is expected to exacerbate the burden. Thus, multidimensional projections of healthcare resource utilization, environmental, and (socio)economic impact are necessary to facilitate sustainable healthcare planning for these diseases. BRONCH-2035 employed historical admissions data (2015-2023) and Swiss governmental population scenario forecasts to project nationwide hospital and intensive care unit (ICU) admissions due to LRTIs and COPD between 2025 and 2035. Projections were then leveraged to estimate future inpatient healthcare expenditures, environmental and socioeconomic burden, employing historic tariff data (SwissDRG) alongside data on disease-agnostic greenhouse gas emissions, Swiss governmental employment and Organization for Economic Co-operation and Development (OECD) economic activity. Compared to 2025, 10,055 (18.4%) additional hospitalizations and an additional 488 (14.3%) ICU admissions due to LRTI and COPD were projected for 2035, requiring 338 (21.8%) additional hospital and 7 (15.9%) surplus ICU beds. Future admissions are estimated to result in an additional 100.2 million Swiss francs (CHF) (18.3%) in inpatient healthcare expenditures and 1.3 million kg (21.1%) additional CO2-equivalent greenhouse gas emissions. Over the period of 2025-2035, LRTI and COPD-related hospitalizations are projected to cause 2.94 million missed workdays, corresponding to 15,402 lost full-time workers, CHF 1.32 billion in productivity losses, 2.46 billion Purchasing Power Parity (PPP) in lost GDP and CHF 151 million in lost tax revenue. BRONCH-2035 is the first study to project the healthcare, environmental and socioeconomic burdens in LRTI and COPD for Switzerland. Population growth and demographic shift alone are projected to exacerbate LRTI and COPD hospitalizations, ICU admissions, inpatient healthcare expenditures, and bed requirements by 2035, alongside socioeconomic and environmental consequences. These findings provide a robust baseline for healthcare planning, highlighting the need for consistent guideline-concordant prevention and structured outpatient care.

This study analyzes the determinants of economic growth in Angola, with a particular focus on the composition of public spending and its interaction with key macroeconomic variables. Methodologically, the research uses a Vector Autoregressive (VAR) model as the main empirical strategy, allowing the capture of dynamic interdependencies between Gross Domestic Product (GDP), different types of public spending, the exchange rate, the price of oil, and tax revenue. The variables were transformed into natural logarithms and tested for stationarity using the augmented Dickey-Fuller test and subsequently differentiated to ensure adequate time series properties. The results reveal that the effects of public spending on economic growth vary significantly depending on its composition. Public investment has the most robust positive impact, while spending on wages and pensions has moderate effects, and spending on goods and services demonstrates lower economic efficiency. Additionally, the price of oil emerges as a determining variable, reinforcing the external vulnerability of the Angolan economy. The results suggest that the sustainability of economic growth depends not only on the volume of public spending, but above all on its composition, making it crucial to prioritize spending with a greater multiplier effect

As the debt burden of Russian businesses continues to increase steadily, the need to stimulate corporate capitalization and discourage the use of debt financing for tax optimization purposes has become increasingly urgent. Based on data from annual accounting and financial statements of organizations provided by the Federal Tax Service of Russia, this article presents the first comprehensive assessment of the tax consequences of limiting interest expense deductibility for both the Russian economy and across individual industries. The study proposes models for assessing the fiscal effects of limiting interest expenses as a proportion of both EBITDA and EBIT and concludes that limiting interest deductibility to 30% of EBITDA would increase state tax revenues by approximately 330-583 billion rubles (excluding financial and insurance sectors). This change in policy would affect only the relatively small proportion of companies (approximately 0.3-0.5%) with high levels of debt and would help in curbing erosion of the tax base when firms shift profit to jurisdictions with lower corporate income tax rates. It would also indirectly stimulate corporate capitalization by constraining excessive leverage. In comparison, capping interest deductions at 30% of EBIT would affect about twice as many companies and could negatively impact the economy, as it would affect firms with only moderate or “normal” interest expenditures. Sectoral analysis reveals that the primary tax burden from either approach would fall on wholesale and retail trade, manufacturing, transportation, and storage industries. Extractive industries, real estate operations, and information and communications sectors would experience only a moderate increase in tax burden, and such interest deduction restrictions would have minimal impact on organizations in other economic sectors. However, the relatively small number of companies affected by these rules in less debt-dependent sectors would nevertheless bear a significantly higher tax burden, which could materially influence their investment behavior and financial strategies, particularly in industries traditionally reliant on debt financing for growth and operations.

This study aims to examine the short- and long-run impacts of tax revenues on manufacturing value added in the German economy. In addition, GDP growth is treated as a control variable to provide a comprehensive assessment of the role of the tax structure in shaping manufacturing performance. The analysis uses annual data for the period 1991–2023 sourced from the World Bank. The stationarity properties of the variables are examined using Augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) unit root tests, and due to the mixed order of integration, the ARDL bounds testing approach is employed. Short- and long-run dynamics are analyzed using the ARDL error correction model (ECM), while model stability is assessed using the CUSUM and CUSUMSQ tests. Structural breaks identified through stability tests are controlled by incorporating dummy variables into the autoregressive distributed lag (ARDL) model.The empirical findings indicate that the share of tax revenue within GDP exerts a negative and statistically significant effect on manufacturing value added in the long run. Conversely, GDP growth positively influences manufacturing value added in both the short and long run. The negative and significant error correction term confirms that deviations from long-run equilibrium are corrected rapidly. Overall, the results suggest that while economic growth supports manufacturing performance in Germany, a higher tax burden may constrain production capacity in the long term.

This study aims to analyze the differences, roles, and contributions of central and regional taxes within the Indonesian taxation system. Taxes serve as the primary source of state revenue and play a crucial role in financing development and improving public welfare. Along with the implementation of fiscal decentralization, local governments are granted authority to manage regional taxes in order to enhance fiscal independence. This research employs a qualitative method with a descriptive approach, utilizing library research from various sources such as books, academic journals, and legal regulations. The results indicate that central taxes still dominate state revenue compared to regional taxes, reflecting disparities in regional fiscal capacity. Central taxes function to finance national programs and maintain economic stability, while regional taxes support local development and public services. To optimize tax revenue, strategies such as tax intensification, digitalization of the tax system, regulatory simplification, and improvement of taxpayer compliance are necessary. Therefore, an effective, transparent, and fair taxation system is expected to promote economic growth and equitable development in a sustainable manner.

Bidis are the most commonly used smoked tobacco product in India. Despite their significant health burden, bidi taxation remains low and there are tax exemptions for small producers. We used a multistate life table model to project the 50-year impact of bidi tax reform under two scenarios: 10% and 30% tax-induced price increases combined with removal of small-producer exemptions. Outcomes included years of life gained (YLG), changes in direct health expenditures, indirect morbidity costs, economic output from averted premature mortality, consumer spending and tax revenues. Total economic effects were defined as reductions in direct health expenditures and indirect morbidity costs plus gains in economic output. Long-run monetary outcomes were discounted at 3%. A 10% price increase yields 21.78 million YLG (95% uncertainty interval (UI) 13.25 to 32.42 million) and Indian rupees (INR) 560.1 billion (0.25% of total health expenditure (THE)) in discounted health savings over 50 years; a 30% increase yields 47.95 million YLG (95% UI 29.17 to 71.37 million) and INR 1232.3 billion (0.54% of THE). Total economic effects reach INR 2530.8 billion (1.12% of THE) and INR 5557.7 billion (2.45% of THE) under the 10% and 30% scenarios, respectively. Discounted tax revenues increase by INR 519.9 billion and INR 1390.0 billion. Absolute gains are largest in Uttar Pradesh and West Bengal, while Uttarakhand, Haryana and Tripura show the highest per capita and proportional benefits. Strengthening bidi taxation and removing exemptions would substantially reduce smoking, improve health and generate significant long-term economic and fiscal gains.

Abstract In light of renewed United States of America (USA) commitments to the Paris Agreement, this study dissects the nation’s carbon emission problem by tracking how carbon pricing, regulatory stringency, resource dependence, trade, and global integration interact to shape per capita CO 2 emissions (CPC) from 1990 to 2021. By establishing the intricate dynamics among environmental policies, economic factors, resource dependency, and globalization in shaping the trajectory of carbon emissions, this study modelled the autoregressive distributed lag (ARDL) and the resulted long-run estimates have shown that environmental tax revenue (ETR) is paradoxically associated with increasing the emissions in long-run, hinting at design flaws or lagged adjustment in the USA fiscal instruments. The policy-related predictor, such as environmental policy stringency (EPS), has only been seen as an important player in keeping emissions downward with a significant reduction potential. However, total natural resource rents (TNR), likewise, nudge emissions upward, similar to the globalization’s (GBKOF) impact on the emissions, and trade openness (Trade). Dynamic simulations of ± 10% shocks underline the asymmetry of policy effects: cutting the ETR sparks a sharp increase in emissions, whereas tighter regulation yields great and steadier gains. A highly significant error-correction term (−0.9) signals rapid convergence to equilibrium, and Granger causality tests reveal that the stringent policy has reverse causality with emissions, where the rest of the predictors show forward causality. Only GBKOF has shown significant bidirectional causality. The findings urge USA policymakers to recalibrate environmental tax policies, hard-wire regulatory ambition into federal-state frameworks, and ensure green globalization to diffuse low-carbon technologies to reduce environmental degradation.

BackgroundKhat is widely grown and consumed in parts of Africa. Its trade supports the local economy through income generation and tax contributions. This research explores the economic impact of khat production and trade in northern Madagascar by comparing its income with that of the vegetable trade.MethodsWe compared the profitability of khat and vegetable trading using a mixed-methods approach. Qualitative data were collected through interviews with nine city managers from two major khat-producing municipalities and with two key khat producers in the city of Diego-Suarez. Participant observation was also conducted at sales points across the city. Quantitative data were collected to twenty sellers to complement and validate the qualitative findings. Khat and vegetable sellers maintained daily income diaries to record variables such as income and purchase prices. Data were collected using KoboToolbox and entered via KoboCollect. In addition, to analyze longer-term financial trends, we examined five years of municipal financial statements from the two main production areas, Joffre-ville and Antsalaka..FindingsThe results confirm our hypothesis that khat boosts local economic development by generating employment and municipal taxes that support infrastructure and local development. Further, khat selling proved to be more profitable than vegetable selling, with higher overall earnings despite seasonal price fluctuations. We found that vendors with family ties to khat farmers earn considerably more than others. Vegetables remain attractive to vendors who lack social contacts or capital to invest in khat, or who desire more market stability.Discussion and significanceOverall, our findings confirm that khat plays a central and complementary role in the local economic ecosystem. Despite its controversial status as a psychoactive crop that is illegal in much of the world, we argue that it should be supported and regulated like other psychoactive crops such as tobacco, tea and coffee.LimitationsLimitations include a small sample size, the complexity of the phenomenon, and data collection limited to a single year. Limitations were mitigated through in-depth qualitative research, and triangulation through informal interviews and field observations.

The impact of taxes on prices and the demand for legally sold recreational Cannabis in the U.S.-An economic evaluation.

Can fiscal autonomy affect per capita income levels? We empirically investigate the impact of fiscal autonomy on per capita income through the proper use of local financial resources. Exploiting a natural experiment in Italy, we compare municipalities in the Autonomous Provinces of Trento and Bolzano, which retain and manage almost all their tax revenues, with neighbouring municipalities in Lombardy and Veneto, where only a small fraction of revenues is autonomously managed. Using a spatial fuzzy regression discontinuity design, we estimate the effect of financial fiscal autonomy on per capita income. We address the potential endogeneity of financial fiscal autonomy with a dummy variable identifying municipalities that manage almost all their tax revenues. Our findings show that higher levels of local financial fiscal autonomy increase per capita income: a one percentage point rise in the financial fiscal autonomy raises per capita income by 0.2–0.7%. This effect is largely driven by higher municipal-level administrative quality in municipalities with stronger fiscal autonomy. The results highlight that granting fiscal autonomy can enhance local economic performance.

Aim: Additional value elements like productivity are currently rarely included in economic evaluations since quantitative assessment may be complex or lack clear guidance. In this study we present a practical framework for estimating the societal impact of medical interventions by incorporating additional value elements into economic evaluations. Materials & methods: We applied this framework in the case of trastuzumab deruxtecan (T-DXd) for patients with metastatic breast cancer in five European countries (EU5). In this study we considered the following elements: productivity losses in paid and unpaid work, quality-adjusted life years (QALYs) valued at willingness-to-pay thresholds, the impact on childcare responsibilities, costs associated with formal caregivers, the effect on informal caregivers and impact on governmental accounts including tax revenue, pension and disability benefits. Results: Our findings indicated that some of the value elements included may lead to a positive societal value for the intervention, while others may result in additional costs. Positive impacts were seen in gains to patient productivity (€589 million), QALYs (€1.7 billion), unpaid work (€259 million), childcare responsibilities (€5 million) and tax revenue (€165 million). Conversely, our findings highlighted a greater demand for formal and informal care (-€29 million and -€7 million, respectively) and increased public spending on disability benefits (-€380 million) and pensions (-€44 million) attributed to T-DXd. The main causes of increased costs were the improvement in progression-free and overall survival achieved with T-DXd. Conclusion: Overall, this framework aims to quantify the societal value of new healthcare interventions. This metastatic breast cancer case study illustrates how key value elements can be integrated into economic evaluations, beyond the classical cost-effectiveness analysis, to further support reimbursement decisions.

Despite extensive investigation into the factors driving the clean energy transition, the impact of income tax on renewable energy consumption (REC) has been overlooked. This study employs a newly compiled tax dataset covering OECD economies from 1990 to 2020 to investigate the influence of income tax on REC. The study also analyzes the moderating effects of digitalization, globalization, and financial development. Applying the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model, the findings reveal that income tax exerts an adverse long-run effect on REC, indicating that higher income taxes discourage the adoption of renewable energy. Digitalization and globalization have positive and significant impacts on REC, while financial development shows a negative association. Moreover, the findings reveal that digitalization and globalization mitigate the adverse influence of income tax on REC, whereas the moderating effect of financial development is insignificant. Robustness checks using the Fully Modified Ordinary Least Squares (FMOLS) model support these findings. The study recommends that fostering technological advancement and globalization are crucial to enhancing the effectiveness of fiscal policy in accelerating the low-carbon transition across OECD economies.

Does tobacco spending crowd out the household budget in Vietnam? Evidence from Vietnam household living standards survey 2014–2020

The road to digital innovation: Vertical spillovers of corporate income tax incentives

This paper incorporates corruption in the tax administration in a Mirrleesian model of optimal income taxation. In a multi-type setting with a discrete ability distribution, we show that the marginal tax structure can be designed to fully offset the incentives to evade taxes. The optimal marginal tax rates reflect two key determinants: the welfare weight the government attaches to each ability type, and how the private cost of tax evasion varies across the income distribution. We also extend the analysis by examining how public expenditures on tax enforcement can serve as a complementary instrument.

ABSTRACT This study pursues an empirical investigation on the link between fiscal policy and economic growth in the MENA countries with a special reference to spatial analysis. The econometric approach employed in the study is based on the data spanning from 2000–2020 considering twenty countries in the MENA (Middle East and North Africa) region. The study uses both the traditional and spatial econometric approaches on panel data to map channels through which fiscal variables affect economic growth considering the region as a whole. Spatial modelling suggests that public debt has no statistically significant direct effect on domestic growth, but it positively affects contiguous countries through spatial interaction. Government expenditure shows a negative direct association with growth and does not generate statistically significant spillovers, while tax revenue exhibits a positive direct association with growth with negligible spillover effects. These results imply that debt management benefits from stronger regional coordination to internalize cross-border effects. They also suggest prioritizing improvements in the efficiency and allocation of public spending rather than expanding aggregate expenditure, and designing revenue reforms jointly with spending decisions to reduce budget deficits and maintain fiscal discipline.

For most people in India, a monthly salary is the only predictable source of income. Yet, at the end of every month, many salaried employees wonder where their money went. Rent, EMIs, groceries, school fees, and sudden medical expenses eat up income before any serious savings can be made. Add income tax to that, and the take-home pay shrinks further.

This study examines the impact of fiscal policy on economic growth in 12 developing countries over the period 2000–2023. Using panel data techniques, including fixed effects, random effects, pooled OLS, dynamic System GMM, and long-run estimators (FMOLS and DOLS), the analysis investigates the roles of government expenditure, tax revenue, fiscal balance, and public debt, while controlling for inflation, capital formation, population growth, and human capital. Preliminary analysis, including descriptive statistics, correlation, fiscal composition, multicollinearity, unit root, and cointegration tests, confirms data suitability and long-run relationships. Results indicate that government expenditure, tax revenue, fiscal balance, capital formation, and human capital positively influence GDP growth, whereas high public debt, inflation, and population growth exert negative effects. Interaction and moderation analyses reveal that human capital amplifies the growth effects of fiscal policy, while inflation dampens it. Robustness checks and Granger causality tests support the main findings, highlighting unidirectional causality from fiscal variables to growth. The study underscores the importance of balanced fiscal management, prudent debt strategies, and human capital investment to enhance growth outcomes. These findings provide actionable insights for policymakers seeking to design effective, growth-oriented fiscal frameworks in emerging economies.

Cannabis legalization has substantial impacts on public health across the United States, yet the perspectives of local elected officials who oversee regulatory environments and make decisions about cannabis business retail licensing, taxation, and marketing restrictions remain largely unstudied. Understanding how these policymakers prioritize health considerations relative to economic and other concerns is essential for developing effective public health advocacy and anticipating barriers to implementing health-protective cannabis regulations. From September 2023 to February 2024, we conducted an online survey of 2,681 elected officials in California local government, assessing cannabis policy positions, priorities, and engagement. Descriptive statistics were calculated for all measures. Likelihood ratio tests using logistic regression assessed differences across political party affiliations (Democrat, Republican, Independent), with analyses stratified by whether respondents' jurisdictions allowed cannabis retail. One open-ended measure was analyzed using thematic coding. Among 250 respondents (9.3% response rate), who were primarily city council members, 40% reported direct cannabis policy experience and 75% expressed interest in regulatory involvement. Top priorities were tax revenue (41%), economic development (41%), and youth cannabis use (38%), reflecting tension between fiscal and health considerations. Support for licensing adult-use retailers was significantly higher among Democrats (72%) than Republicans (39%; OR = 0.25 [95% CI: 0.11, 0.56]) or Independents (38%; OR = 0.23 [0.10, 0.53]). Republicans were significantly more likely to prioritize adverse health effects (47% vs. 22% Democrats; OR = 3.10 [1.36, 7.07]). Social equity was prioritized by only 13% overall, with significant partisan variation (20% Democrats vs. 3% Republicans; OR = 0.11 [0.01, 0.85]). Cross-party agreement emerged on restricting youth-attractive packaging (84%), yet fewer than 4% of California jurisdictions that allow retail to operate have implemented such protections. Qualitative responses revealed diverse framings of cannabis-from prohibition-era moral concerns to wellness narratives-suggesting policy decisions are often not evidence-based. This first systematic study of U.S. elected officials' cannabis policy positions documents a political landscape in which economic considerations predominate over health concerns and significant gaps exist between policymakers' support for health-protective measures and actual policy implementation. These findings identify actionable opportunities for evidence-based public health advocacy, particularly in support of bipartisan youth protection measures.