Tax Policy Research Articles

The role of company size in moderating capital intensity and manager ability to tax avoidance

This study was conducted to examine the effect of capital intensity and managerial ability on tax avoidance by adding company size as a moderating variable, and profitability and leverage as control variables. This study is a quantitative study with a random effect model. The sample selection used purposive sampling with a total of 252 samples from 84 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2021 – 2023 period. The hypothesis test used was multiple linear regression using STATA 14. Based on the results of the hypothesis test, it shows that (1) capital intensity has no effect on tax avoidance, (2) managerial ability has an effect on tax avoidance, (3) company size has no effect in strengthening the relationship between capital intensity and tax avoidance (4) company size has no effect in strengthening the relationship between managerial ability and tax avoidance.This indicates that tax avoidance efforts are influenced more by managerial skills than investments in fixed assets. This emphasizes the importance of the role of management in tax planning, so regulators need to focus more on increasing supervision of tax policies related to managerial ability.

Contribution of Income Tax Revenue to Total Tax Revenue of Nepal

The Government is responsible for maintaining peace, security and economic stability, balancing debt management and investing in infrastructure and essential resources to foster development and cover ongoing expenses. These priorities require a robust financial system, with tax revenue as a crucial income source for the government. Therefore, it is essential to understand the dynamics between income tax revenue and total tax revenue for effective policy-making and economic management. This study explored the intricate relationship between income tax revenue and total tax revenue in Nepal, to enhance understanding and inform future research and policymakers. The study comprehensively analyzed time series data from 2009/2010 to 2021/2022 to achieve this objective. The analysis included descriptive analysis to identify the relationship between income tax revenue and total tax revenue. The study revealed a strong positive correlation between income tax and total tax revenue in Nepal. The study’s findings underscored the significance of income tax policies in shaping overall tax revenue and provide valuable insights for policymakers and tax authorities in optimizing revenue generation while ensuring tax system stability.

Cross-border E-commerce Tax Challenges and Policy Empowerment: Mechanisms, Cases and Prospects

In the digital era, e-commerce has significantly grown, becoming integral to the global economy, yet posing complex taxation challenges. This paper explores e-commerce taxation issues, focusing on tax authorities' difficulties with cross-border transactions, intangible goods, and the absence of a unified global tax framework. It also addresses tax awareness problems among e-commerce stakeholders. Case analysis, such as the Wei Ya tax evasion in live-streaming, highlights challenges in transaction data, tax entities, and policies. The study finds e-commerce taxation plagued by high collection costs, tax fairness issues, and inter-regional tax competition. However, tax policies like export rebates and preferences for returned goods are crucial for cross-border e-commerce development, reducing enterprise tax burdens and guiding strategies through economic incentives and risk-sharing. The research underscores the urgent need for tax system reform to align with e-commerce, emphasizing enhanced tax supervision and policy improvement for fairness and healthy economic growth. Future research should optimize tax policies, boost international tax cooperation, and utilize technological advances like electronic invoices for efficient e-commerce taxation.

Examining the asymmetric influence of tax revenue policy in an oil-dependent economy: evidence from Oman

Purpose This study aims to examine the asymmetric effects of tax revenue policies on the economic activity of Oman. Design/methodology/approach This study applies the nonlinear autoregressive distributed lag model and uses data from 1980 to 2022. Findings The findings confirmed that economic activity has a cointegrating relation with the positive and negative shocks of the tax revenue policy and selected macroeconomic variables. In addition, the long-run results show that positive changes in tax revenues have a positive significant effect on the economy, while negative shocks in tax revenues have a negative effect on the economy at the 5% significance level. The study concludes that a significant long-term asymmetric relationship exists between taxation policy changes through the revenue channel for the economy of Oman. Originality/value No previous study has specifically investigated the asymmetric impact of tax revenue policies on the economy of Oman, which is an oil-dependent country. To the best of the authors’ knowledge, this study is the first attempt to explore this relationship with respect to the Omani economy, and it uses extensive time series data and employs various contemporary econometric techniques. Given Oman’s reliance on oil and gas revenues, which typically fund approximately 70% of the country’s annual budget through taxation on oil and gas sold, fluctuations in global oil prices directly influence country’s fiscal position. Thus, this study contributes to the literature by empirically confirming the asymmetries impact of fiscal (tax) policies on Oman’s economy. The implication of the results suggests that the government cut back on tax incentives and tax exemptions for local and foreign businesses. This move can foster economic growth and reduce the negative competition effect among investors and taxpayers, which may ultimately improve the country’s tax revenue.

Lower support for redistribution and progressive taxes among young adults in Belgium

ABSTRACT Progressive taxes are an important policy tool to achieve redistribution within a society. While previous research has shown that there is broad popular support for progressive taxes, survey data from Belgium suggest that this support is significantly lower among younger age groups. Young respondents are significantly less willing to use tax policy as an instrument to reduce inequality, even when taking into account their concern about inequality. This age effect is significant, even controlling for political sophistication, income, beliefs in the welfare state, and ideology. Young adults therefore seem less willing to allocate a large proportion of societal resources to the political system in order to achieve redistribution, and in the concluding section we offer some suggestions on what might explain this phenomenon.

ON THE NEED FOR FORWARD-LOOKING POLICYMAKING: AN ECUADORIAN CASE

While allowing the refiling of taxes in the case of legitimate mistakes is reasonable, there is empirical evidence showing that the unlimited ability to refile may incentivize evasion. However, theoretical models examining limiting unlimited refilings are nonexistent. Therefore, this paper develops a model to study the role of allowing an unlimited number of tax refilings on the behavior of taxpayers that received tax notifications because they under-reported taxes, as it was seen in the case of Ecuador between 2010 and 2012. Among other things, the key finding of the examination is that, if taxpayers are allowed to refile as many times as they want, the best decision for selfish taxpayers is to evade taxes. Contributing to the tax compliance literature but from a broader perspective as well, this paper demonstrates the importance of considering behavior through careful theoretical analysis before implementing new tax policies.

OPTIMAL REDISTRIBUTION AND EDUCATION SIGNALING

AbstractWe develop a theory of optimal income and education taxation under asymmetric information between firms and workers. Our results show that a max–min optimal tax code can achieve predistribution by pooling wages across ability levels, conditional on income. We identify conditions under which the optimal solution leads to pooling or separating equilibria, highlighting bidirectional incentive constraints. Implementation requires nonlinear income taxes coupled with education subsidies or mandates. Predistribution is only feasible when income taxes are complemented by policies that restrict signaling opportunities. Our framework provides new insights into reducing wage inequality through optimal tax policy and labor market information management.

The United States Takes the Lead on Amount B – Will Taxpayers and Other Countries Follow?

The United States became the first BEPS Inclusive Framework member to formally adopt any portion of Pillar One in its domestic law when, in December 2024, the US Internal Revenue Service issued Notice 2025-4 effectively adopting Amount B. The impact of this attempted reassertion of global tax policy leadership will depend on whether and to what extent taxpayers and other jurisdictions follow. Forthcoming IRS regulations on Amount B could incentivize them to do so.

The role of subnational tax capacity: A path toward regional integration

The tax capacity exercised by subnational governments in a country is fundamental in shaping the tax and economic system, especially when there is a coordination of interests, such as in the Pacific Alliance. Therefore, the coordination exercised by its member countries – Chile, Colombia, Mexico, and Peru – must be strategically aligned to comprehensively strengthen this Alliance. Considering the above, the objective of this study is to identify the similarities or differences between these four countries, check the tax behaviors of their subnational governments, and assess the degree of their impact on this trade agreement. Based on a longitudinal quantitative methodology, the results reveal significant differences between the subnational collection systems, identifying that Mexico and Peru are the only members that have maintained a similar trend, significantly differentiating themselves from Chile and Colombia. Despite their subnational tax structures, the main finding is that the Pacific Alliance needs to implement more coordinated actions in tax matters to strengthen its economic activities with other countries. A lack of coordination could counteract the commercial and financial strategies presented as a regional bloc, impacting investment, competitiveness, and regional sustainability. Overall, coordinated tax policies within the Pacific Alliance can drive regional integration, contributing to the region’s long-term stability.

Tax Planning Measures of Salaried Individuals

Tax planning is a crucial financial strategy for salaried individuals, aimed at minimizing tax liabilities while ensuring compliance with applicable tax laws. The objectives of tax planning for the salaried class include maximizing exemptions, deductions, and rebates to enhance post-tax income and secure long-term financial stability. Common tax planning measures adopted by salaried individuals involve investing in tax-saving instruments like Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificates (NSC), and making the most of deductions under Section 80C, such as those for insurance premiums and home loan repayments. Additionally, individuals utilize allowances like House Rent Allowance (HRA), medical reimbursements, and interest deductions on home loans to further reduce their taxable income. This study aims to explore the satisfaction levels of salaried individuals with the tax planning measures they adopt, identifying the effectiveness of these strategies in achieving their financial goals. Furthermore, the research examines the challenges and obstacles faced by salaried individuals in effectively implementing tax planning measures, such as limited knowledge, complex regulations, or insufficient access to financial tools. By understanding these factors, the study seeks to provide insights into improving tax planning practices and policies for the salaried class.

Water resource tax policy and micro environmental performance improvement in China's water-intensive industries

Water resource tax policy and micro environmental performance improvement in China's water-intensive industries

Safety net program participation patterns, sociodemographic factors, and health.

US safety net programs provide critical support to Americans with low income. This cohort study examined patterns of safety net program take-up over time and associations with sociodemographics and health. Surveys among California households with low income (n=380) conducted in 2020-2021 and 2023 captured take-up of federal assistance programs [Medicaid; Supplemental Nutrition Assistance Program (SNAP); Special Supplemental Nutrition Program for Women, Infants, and Children; Earned Income Tax Credit; Child Tax Credit] in 2019 and 2021 and health in 2023. Latent transition analysis identified patterns and temporal shifts in program take-up among those eligible. Multivariable regressions examined associations of patterns with sociodemographics and mental and overall health. Analyses were completed in 2024. Three take-up patterns emerged: high take-up of "all programs," "low SNAP," and "low tax programs." Most in "all programs" and "low SNAP" patterns in 2019 remained in 2021. Most starting in "low tax programs" transitioned to "all programs" by 2021. Higher income was associated with lower relative risk of "low tax programs" (RRR=0.37, 95%CI=0.28,0.49). Hispanic ethnicity was associated with higher relative risk of "low SNAP" (RRR=3.73, 95%CI=1.50,9.23). Having more children and depressive and anxiety symptoms were associated with higher relative risk of being in "all programs" at both timepoints. No associations were found with overall health. Proportion of respondents with high take-up of all programs increased over the study period, perhaps due to pandemic-era policy changes. Take-up patterns showed associations with mental health, and key differences among sociodemographic subgroups suggest targeted interventions may improve participation.

Double Burden of Malnutrition: A Narrative Review of its Drivers and Mitigation Strategies in Urban Settings

Background: Double burden of malnutrition (DBM) is an emerging public health problem in urban settings where both undernutrition and obesity exist. This complex phenomenon is caused by socioeconomic disparities, urbanization, and dietary transitions, with women and children being proportionately affected. This study reviews the drivers of DBM and evaluates suitable mitigation strategies. Methods: A comprehensive review was performed using studies published between 2014 and 2024. Peer-reviewed articles examining the drivers, interventions, and outcomes of DBM within urban contexts were the target inclusion criteria. Data were extracted on location, target populations, methodologies, key drivers, interventions and outcomes which were then synthesized using thematic analysis. Results: Eighteen studies from Sub-Saharan Africa, Southeast Asia, and Latin America were included. Drivers known to be common among the reviewed studies include income inequality, poor dietary diversity, and cultural food practices that are further worsened by urbanization and sedentary lifestyles. By region, effective mitigation strategies included maternal nutrition literacy programs in Southeast Asia and Sub-Saharan Africa and taxation policies against unhealthy foods in Latin America. Gaps were identified in the areas of policy implementation and program scalability. Conclusion: Integrated, double-duty actions are needed to address the double burden of malnutrition in urban contexts. However, policy reform, community-based nutritional programs and educational initiatives targeted at vulnerable populations, are essential. Longitudinal and gender-specific research should be prioritized in assessing DBM’s trajectory and informing future sustainable interventions. The findings from this study offer actionable insights for policymakers and public health practitioners working to eliminate DBM in urban settings.

Integrated Inventory Management Strategies: Balancing Preservation Technology and Carbon Tax Policies

Integrated Inventory Management Strategies: Balancing Preservation Technology and Carbon Tax Policies

Tax Policies and Economic Growth: A Comparative Review

Tax Policies and Economic Growth: A Comparative Review

DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA

Abstract Taxation and tax policy of any economy has a major implication on the growth “and performance of businesses in every economy. fiscal policy instrument should not be rigid for the taxpayers. This is because a flexible and viable taxation system has the capacity to stimulate economic activities. The paper examines how taxation impact the profitability of commercial banks in Nigeria. To test the hypothesis, the paper applied the panel regression on published information from fifteen banks from 2011-2022. The findings reveal that the marginal tax rate, effective tax rate and the average tax rate have strong positive and significant effects on return on asset. The outcome offers corporations useful insights on tax planning strategies properly and show how their tax avoidance skills could be used without practicing tax evasion. Amongst others, the recommends that regulators should grant tax incentives and reforms to reduce the tax burden on companies. Moreso, governments should formulate unequivocal tax policies that would aid tax law and administration that would encourage business growth.

Health Policy Challenges for 2025 and Beyond

This JAMA Forum discusses potential changes to tax policy and health care, the upcoming expiration of enhanced subsidies through the Affordable Care Act, and physician payments and prescription drug pricing rules in Medicare.

Bibliometric analysis of research trends and networks in carbon tax studies: Insights into environmental and economic policy implications

Carbon taxes are increasingly recognized as a critical tool in mitigating climate change by reducing carbon emissions. This study analyzes research trends in carbon tax studies using bibliometric techniques and social network analysis to explore their environmental and economic impacts and policy implications. By analyzing 922 documents from 308 sources published between 1968 and 2024, the study identifies key topics, emerging trends, and collaboration patterns among researchers. The results show a significant increase in carbon tax publications and citations, particularly from 2000 to 2019, peaking around 2017–2019, followed by a decline after 2021. The most frequently studied topics include carbon tax effects on emissions reduction, economic balance, and environmental sustainability. Social network analysis reveals influential researchers and institutions driving the discourse on carbon taxes, highlighting the importance of interdisciplinary collaboration in shaping effective policies. These findings provide insights into the evolution of carbon tax policies and underscore the need for continued research on specialized themes such as the role of carbon taxes in supply chain management, social equity, and energy policy. AcknowledgmentsThe authors would like to express their sincere gratitude to the Rector and the Dean of the Faculty of Economics and Business, Hasanuddin University for their unwavering support and invaluable assistance in this analysis. Their commitment to advancing academic research and community service has been instrumental in completing this study.

Historical Development of Taxation From Ancient Times to Modern Day: Implications for the Future

This study examines the history of taxation, specifically how taxation was used over the centuries by major world civilizations. This study provides a comprehensive review of past and more recent studies, spanning the full length of tax history using a quasi-empirical approach, thereby offering a unique contribution to the academic literature. Theoretical foundations include Adam Smith’s Canons of Taxation, benefit theory, ability theory, and tax assignment theory. Implications are drawn for the future of taxation. Findings suggest that various forms of taxation played a critical role in amassing resources necessary to build and sustain world empires and republics. Implications are that this will continue. Excessive taxation was included as a factor in the downfall of some empires. World history might have taken a notably different direction without the revenues accumulated via taxation. Results will interest tax policy makers, academic tax researchers, law professors, and others concerned with the historicity of taxation. Results can also be used by accounting and legal educators.

Site Value Taxation Policy in Kenya: Unravelling the African Legacy of Georgist Political Economy

Henry George made a remedial call for site value tax paid by the owner of the land based on the potential annual rental value of whatever land is held. Land, in this context, refers to the surface areas of the earth that serve as development sites, especially within urban jurisdictions, and are typically subject to some form of property taxation. Henry George’s ideas on land taxation influenced tax policies in countries colonized by the British, in particular, Australia, New Zealand, Canada and South Africa. However, his influence in Africa has not been explored. Taking Kenya as a case country, this study investigates the diffusion of George’s ideas in Africa and to Kenya, examines the implementation of these ideas in Kenya and evaluates the outcome of their application to draw insights from the Kenyan experience. The study found that Henry George’s idea of site value taxation, introduced to the country through South Africa under the influence of the British Liberal Party, is the driving factor of urban land taxation in Kenya. In this respect, the unimproved site value remains the principal land tax levied in Kenya to date. However, the single tax proposal was not considered by the policymakers in the process of land taxation policy development.