Increase In Tax Burden Research Articles

The Tax Burden in the Petrine Era: Historiographical Discussions

The author demonstrates that the tax burden was first calculated in Russia at the end of 1729 by the Tax Commission (1727–1730) headed by Prince Dmitry Golitsyn. The calculations allowed the Commission to draft a tax reform. Its documents contain unique information about extraordinary payments, i. e. sums for enlisting recruits and the construction of headquarters. These data allow the author to reconsider the results of the Petrine tax reform, which are reflected in the historical literature as an increased tax burden from 16 to 260 percent. According to the author’s calculations, with the introduction of capitation tax (and when comparing the sums from 1721–1723, 1724, and 1726–1727) taxes raised increased by 70 percent; taking into account the increase in prices for bread, they grew by 94 to 116 percent. Nevertheless, the article emphasises the fact that some information on the fees for the supply of recruits was obtained by Golitsyn’s Commission on the basis of incomplete data. Accordingly, it is only possible to obtain rough estimates of tax burden when using this information. In addition, the review of data indicates errors in the Commission’s calculations of taxes due per household in 1724 and in 1726–1727. These errors affected the calculation of the tax burden in Russia in the 1720s. The author comes to the conclusion that these mistakes were intentionally made by the Commission, the head of which, apparently, was interested in drafting a tax reform, not reducing the army’s budget. However, it is important to note that Golitsyn’s Commission carried out tremendous work in collecting and analysing data on the financial situation of the country. This work expands established ideas about the history of economic and statistical thought in Russia.

An economic analysis of the progressivity of income taxes using a dynamic general equilibrium model

This paper explores the effect of the progressivity of income taxes on the distribution of income and consumption across households as well as the aggregate output in Korea. Using Korean administrative data on income and tax by income percentile,we find that the post-2012 progressivity of Korean income taxes is double the pre-2012 progressivity. By building a dynamic general equilibrium model with heterogeneous agents, we quantify the long-run effect of the increased progressivity of income taxes on Korean economy. We find that the more progressive income taxes increase the government's tax revenue, while reducing the dispersion in income and consumption across individuals. However, the bottom decile of the income distribution is the only group that experiences a rise in consumption, while the consumption of all other income deciles is reduced. This is attributed to the large decline in the aggregate capital. Faced with the increased tax burden, high income earners reduce their savings, causing the aggregate capital and thereby output to decrease.

Diversification of energy poverty in Central and Eastern European countries

Household energy security, and in particular affordability of energy services and the energy poverty issue, is a debated topic both at the EU level and at the level of individual countries. The aim of the paper is to investigate the energy poverty diversity in the Central and Eastern European countries. The energy poverty index that aggregates three aspects: availability and affordability of energy services, as well as household energy efficiency, has been presented. This framework allows for comparison between countries and discloses the diversity of their energy poverty profiles. Analysis of energy poverty indicates diversification of level and dynamics of this phenomenon in the studied countries. Among countries of Central and Eastern Europe, there are both countries, where the problem of energy poverty is the highest, and the lowest in Europe. Almost all studied group is characterized by decreasing level of energy poverty in that particular period. Analysis of index components indicates diversification of energy poverty profiles. Important factor shaping the ability to acquire energy services was also the consequence of economic crisis, especially lowering the level of incomes and the increase of energy prices as a result of increasing tax burdens imposed on energy carriers.

The environmental benefits and economic impacts of Fit-in-Tariff in China

We employ a dynamic computable general equilibrium (CGE) model that includes Fit-in-Tariff, greenhouse gas (GHG), and air pollutants modules to evaluate the impacts of different subsidy scenarios. Assuming that the subsidies will continue until 2030, our results indicate that the Fit-in-Tariff will have positive effects on real GDP, employment, and emission reductions and that these benefits will increase over time. Such subsidies not only encourage the substitution of clean energy for traditional fossil energy, but also invite investment in renewable energy industries, ultimately benefiting all sectors. A sustained higher subsidy rate can contribute to the abatement of GHGs, and air pollutant emissions significantly, while also stimulating real GDP and employment in the early periods of the policy, yet it will not be conducive to growth over time due to the increasing tax burden. If subsidies continue until 2050, the environmental benefits will become more pronounced while the economic benefits will gradually disappear.

STATE REGULATION OF TAX STIMULATION FOR INNOVATIVE ACTIVITIES OF ENTERPRISES

There are modeling the implications of introducing tax incentives for innovative enterprises. The appropriateness of tax incentives for innovation at the expense of incremental tax credit on corporate profit tax has been confirmed. There was proved that state regulation of incremental tax credit causes positive changes both for enterprises and for the state. There was determined that an increase in the amount of taxpayers' tax liabilities does not affect the increase of tax burden. The results prove the high capacity of incremental tax credit to stimulate innovation. Moreover, the role of the private sector is to transform the available financial resources (ie, net profit) into an investment and innovation resource. And the role of the public sector is to invest in the development of innovations through indirect funding (that is, "directing" those who have not received as a result of preferential taxation of capital investments). At the same time such "direction" is carried out by providing tax incentives to innovative enterprises on the target conditions

Повышение пенсионного возраста: позитивные эффекты и вероятные риски

In this paper, we explain why it is necessary to reform the pension system in Russia and, in particular, to increase the pension age. Moreover, we emphasize the positive consequences of such a reform, focus on potential risks and analyze measures for their prevention, as well as state counter-arguments to the most common objections. It is shown that due to demographic processes, the growth of informal employment and the reduction of average tenure, the number of pensioners is increasing while the population of donors of the pension system is declining. Under such conditions, the maintenance of the existing level of pensions will require significant additional costs. Raising the general retirement age as one of the measures for optimization of the pension system will help not only to maintain the level of pensions, but also to prevent the expansion of transfer payments from the federal budget and the increase of tax burden on the population and business. The reform will improve the situation on the labor market and stimulate the process of active longevity. It is also shown that the arguments against the increase of the retirement age are not well-founded. Several scenarios of the retirement age increase are considered, and the choice of the most favorable way for the Russian economy is made: up to 63 years for men and 60 years for women at the pace of 3 months per year in the first four years of the reform, then 6 months per year. The most crucial tasks which should be solved in order to maximize the social and economic output of the reform are also considered in the paper.

Causes of Tax Risks and Ways to Reduce Them

The research studies the tax risks theoretical fundament, identifies the causes of their occurrence and looks for possible ways to minimize them. The purpose of the work is to economically justify the use of state regulation tools to eliminate a risky event in practice, as well as the ability to cope with the situation when tax risks occur.Theoretical analysis based on various scientific methods allows the authors to conclude that the constant tax legislation changes, the introduction of new taxes and fees increasing tax burden, the tax payments cuts are main sources of tax risks.The authors identify the following tax risks types: seizure of property in the amount of unpaid taxes, tax sanctions and penalties and others. The article focuses on efficient measures to eliminate tax risks: development of an unambiguous tax legislation and its timely implementation; introduction of deep tax control to reveal all unaccounted objects of taxation and thereby exclude non-taxable objects; do not raise the level of the tax burden, minimize tax payments.The authors introduce the novel concept of tax risk meaning the likely possibility of unplanned losses occurrence in the performance of a state, region or a business entity within the framework of tax relations in connection with financial resources.The obtained results will serve for practical improvement of tax relations for both sides: the tax and customs authorities on the one side and organizations, individual entrepreneurs, individuals on the other side.

Розрахунок податкового навантаження на основі короткострокових фіскальних характеристик

In the article the author determines the optimal tax burden on businesses due to decrease of economic growth on one hand, and increase of government revenues, on the other. The author proves that the state's intention to maximize the budget revenues using tax proceeds leads to the drop in the rates of the state’seconomic development and a reduction of economic activity. The author shows that tax burden and tax evasion rates have increased caused by insufficient tax policies which in its turn minimized the probable positive effects of using fiscal measures. The purpose of the article is to investigate the impact of tax burden on taxpayers and to calculate the extremes of its production and fiscal functions which are based on short-term fiscal characteristics. Influence of tax burden on economic growth, various methods of assessing the impact of taxes, tax rates and taxation technologies are used. Usage of Laffer's curve as an important theoretical and empirical instrument for investigating tax burden is offered by the author as a traditional one. The influence of taxes on economic agents by determining dependencies of linear and nonlinear types is outlined. The plotting of the Lafer curves for different types of dependencies is offered. The points of the local maximum which correspond the extramumes of the production and fiscal functions of the Lafer curves are found. The author calculates the level of tax burden in Ukraine on the basis of short-term fiscal characteristics. It can be seen from the chart that during 2000-2016 there is a gradual increase in tax burden to 8.9% in comparison to 2000. &nbsp

Milli Gelirin Vergi Yükü Üzerindeki Etkileri: ARDL Sınır Testi Yaklaşımı ile Türkiye Üzerine Bir İnceleme (1924-2014)

The purpose of this study is to determine how the changes in GDP per capita, which is an indicator of economic development, affect the tax burden in the short and long term in Turkey. In this context, the study utilises data about GDP per capita and tax burden from 1924 to 2014 and employs the Autoregressive Distributed Lag (ARDL) bounds testing approach. Although many studies in the literature has been reached that there is a positive relationship between these variables, this study shows this interaction occurs only in the long term. In fact, the research finds a %1 percent increase in GDP per capita will bring about a % 0.07 percent increase in tax burden in the long run. For short term there is a negative relationship between these variables but it is not statistically significant.

Analisis Penerapan Peraturan Pemerintah Nomor 46 Tahun 2013 terhadap Beban Pajak Wajib Pajak Orang Pribadi UMKM di Indonesia dengan Menggunakan Skema Gain/Loss

This study aims to determine the impact of the implementation of PP 46 Year 2013 on the tax burden of SMEs individual taxpayers, whether the tax burden becomes larger or become smaller after the implementation of PP 46 Year 2013. To answer this research question, this study using gain/loss scheme, where taxpayers who have increasing tax burden after the implementation of PP 46 Year 2013 referred to” loss” taxpayers and taxpayers who have decreasing tax burden after the implementation of PP 46 Year 2013 referred to “gain” taxpayers. Furthermore, this study also examined the impact of the implementation of PP 46 Year 2013 to the amount of tax revenue obtained from SMEs individual taxpayers, which is confirmed the presumptive tax regime under the rule. The results of this study show that: (i) Implementation of PP 46 Year 2013 led to the tax burden of SMEs individual taxpayers becomes higher. Of the 1783 samples (SMEs individual taxpayers), there were 1247 sample have experienced loss. It was concluded that PP 46 Year 2013 led to a higher tax burden for SMES individual taxpayers; and (ii) PP 46 Year 2013 have contributed in increasing tax revenues and the number of SMEs taxpayers who pay taxes, but it is not significant.

Ways of corporate tax optimisation for cluster entities

The purpose of the article is to verify the offered hypothesis and to determine the perspectives of optimisation of taxation for cluster entities using the example of modern Russia. As evidence base of existence of necessity for tax optimisation in Russia, this article offers determination of connection between tax revenues of the state budget and tax burden on organisations with the help of regression analysis. The authors perform characteristics and determine perspectives of optimisation of tax system of modern Russia, substantiate the necessity for tax optimisation of cluster entities and view corporate tax as a perspective direction of tax optimisation for cluster entities. As a result of the research, the authors come to the conclusion that there is a strong dependence between increase in tax burden on Russian enterprises and reduction of tax revenues into the state budget. High tax burden is one of the barriers of clustering in Russia, as participation in cluster entities reduces possibilities for income concealment and shadow business. Tax optimisation is a perspective direction for solving the problem of shadow economy.

Ways of Corporate Tax Optimization for Cluster Entities

The purpose of the article is to verify the offered hypothesis and to determine the perspectives of optimisation of taxation for cluster entities using the example of modern Russia. As evidence base of existence of necessity for tax optimisation in Russia, this article offers determination of connection between tax revenues of the state budget and tax burden on organisations with the help of regression analysis. The authors perform characteristics and determine perspectives of optimisation of tax system of modern Russia, substantiate the necessity for tax optimisation of cluster entities and view corporate tax as a perspective direction of tax optimisation for cluster entities. As a result of the research, the authors come to the conclusion that there is a strong dependence between increase in tax burden on Russian enterprises and reduction of tax revenues into the state budget. High tax burden is one of the barriers of clustering in Russia, as participation in cluster entities reduces possibilities for income concealment and shadow business. Tax optimisation is a perspective direction for solving the problem of shadow economy.

The effects of increased VAT rates applied in the EU member states in 2014

The European Union countries tend to strongly prefer indirect taxes. This tendency results in the increase of the value added tax rate. In the economic reality, the legal burden of the consumption tax is distorted and it consequently leads to distribution and shift to other entities participating in market transactions. The aim of the paper is twofold. First, to determine the primary value of the relative distribution of the burden on the seller and the buyer. Second, to adjust it for those values which suggest that the increase in the tax burden may result in a reduction in sales prices. Furthermore, the paper aims to follow the conservative approach for determining the minimum values of the shift of the tax burden onto the consumer. The strict determination of the limits of burden distribution is presented within the limits of the actual tax burden. Finally, the partial shift of the increased tax burden onto consumers in the minimum amount of 1/3 is identified together with a significant negative correlation between the size of change of the tax burden and the rate of shift of the tax burden.

Will Uzbekistan’s oil and gas industry benefit from international listing?

Uzbekistan’s oil and gas industry is experiencing declining production due to the depletion of existing oil and gas fields and aging production infrastructure. A multi-level organizational structure at Uzbekneftegaz is another reason for low efficiency of the industry, which causes the problems of increased bureaucracy, increased tax burden and inefficient allocation of resources. Partial privatization of Uzbekneftegaz can be an efficient tool in attracting alternative financing without putting the burden on the state budget and not ceding government control. Being listed on the international market, Uzbekneftegaz will have to follow internationally accepted corporate governance standards. This will have a positive impact on the efficiency and productivity of the industry

It's the Outcomes, Not the Rules: Transitional Issues in the Process of Tax Reform

When tax rules change, taxpayers may face an increased tax burden that they were not able to anticipate upon. This raises the normative question of transition regimes: should taxpayers be compensated for unexpected losses? Academic thought typically focuses on single-rule changes. But in processes of tax reform, many rules change at the same time. And usually, the overall package is a political compromise that offers general compensation such as tax rate reductions, while ignoring some losses and providing specific relief for others.A discussion of the major tax reform discussion in the US, a shift from income tax to consumption taxation, shows how the normative conclusions drawn from the “single rule”-based approach run into difficulties. The practical approach would no doubt be to evaluate the overall effects of such a reform, and see which remaining losses require specific measures.There is no objective way to distinguish between the single-rule case and the tax-reform case. The decision to present measures as a package is a political one though it can be subjected to tests of plausibility and proportionality.

How Do the Location, Size and Budget of Open Space Conservation Affect Land Values?

In this article we present a model to examine the optimal location, size, and budget of open space conservation and the resulting impact on land values and local fiscal conditions in an urban area. Results indicate that open space conservation can transform the defining features of an urban landscape. A well-designed open space conservation program can improve municipal services, increase total property values, and attract households to the city without substantially increasing tax burdens, while an improperly designed open space program can have the opposite effects. Results also reveal the key parameters that determine the optimal location and size of open space conservation and their fiscal and land value effects.

Estimating the Elasticity of Personal Income Tax to Gross Earnings from Income Tax Statements in Greece: Implications for Tax Buoyancy

Using data from income tax statements aggregated at the regional level we estimate the elasticity of income tax to gross earnings over the period 2005–2010. Controlling for time and regional effects we find an elasticity of 2.45, which is 45% larger compared to earlier OECD studies. Relying on Girouard and Andre (2005) findings we translate this into an elasticity of income tax with respect to output gap, which ranges from 2.205–2.45, substantially above recent IMF estimates (see Belinga et al 2014). Based on this evidence, and the IMF estimations for the narrowing of the output gap in 2014–2016, we compute that the gains from PIT related buoyancy effects can range from 1653.1 million euro to 1845.6 million euro (or 0.87–0.97% of GDP) over the period 2014–2016, compared to the baseline scenario (of 1338.7 million or 0.70% of GDP) that relies on the OECD elasticities. However, the tax data at hand could underestimate the true elasticity of income tax relative to earnings and the gains from buoyancy that could be realized in future years in view of the fact that they do not reflect the dramatic changes that took place in the subsequent years (increase in tax burden on account of extraordinary taxes, abolition of tax exemption etc. that increased the progressivity of the tax system).

Potentials and structure of fiscal devaluation in Serbia

Fiscal devaluation is a set of synhronized policy measures with the aim to stimulate economic growth and improve economy competitiveness by simultaneous decrease of gross labor costs and increase of tax burden on consumption. The precondition for successful fiscal devaluation is to comply with principle of fiscal neutrality. Fiscal devaluation could enhance competitiveness of the economy and contribute to improved trade balance. Implementation of fiscal devaluation might be beneficial to both, countries which belong to a currency union and countries with a high level of public debt denominated in foreign currency. Comparative analysis provided potential short and long term effects of fiscal devaluations and enabled assessment of structure of fiscal devaluation in Serbia. This article provides a framework for forthcoming debates on applicability of fiscal devaluation in Serbia and includes the potential structure of fiscal devaluation.

Ist eine Integration des Solidaritätszuschlags in den Einkommensteuertarif möglich?

Im Rahmen der Bund-Lander-Gesprache zur Neufassung des Finanzausgleichs im September 2014 wurde unter anderem vorgeschlagen, den Solidaritatszuschlag mit dem Auslaufen des Solidarpakts im Jahr 2019 formell in den Einkommensteuertarif zu integrieren. Wenn diese Reform moglichst aufkommensneutral ausgestaltet werden soll, wird das erhebliche Verteilungswirkungen nach sich ziehen. Die Autoren zeigen anhand ausgewahlter Beispiele auf, fur welche Steuerzahler Mehrbelastungen bzw. Entlastungen entstehen wurden.

Empirická analýza daňové soutěže v Evropské unii

The increase in the capital mobility forces the Member States to decrease tax burden on capital. Lower revenues from capital taxation have to be compensated by the increase in tax burden on labor. The aim of the article is verify the hypothesis that increasing capital mobility leads to the decrease in the tax burden on capital and also that decrease in the tax burden on capital leads to the increase in the tax burden on labor. The hypothesis will be tested for EU Member States in the time period 1991–2005 by using cointegration analysis.