Present Tax System Research Articles

조선 후기의 세제 개혁 방안에 관한 연구

Studying Korean detergent history should not become an antique taste. In fact, by attempting “a dialogue between the past and the present” with a keen awareness of the present and future of the tax system, the present tax system can only be found vividly under the light of the past tax system. can be found Military service in the early days of the Joseon dynasty, from the restraint of high-ranking bureaucrats to the general public, without any loss of social status, from 16 to 60 years of age unless there is a special reason for immunity, Jang Jeong-eun, who reached all conscription ages, divided into provinces and camps to serve in national defense. It was a national open-air system that was stipulated to work hard. However, before and after the Imjin War, the national open military system was practically abolished, and military service was filled only with the military service of ordinary people excluding the ruling class.
 At that time, Gunpo collected 2 Pills of Pill per year for one Jangjeong, which was equivalent to 12 heads of rice at the average market price at the time. However, since the fact that 2 pills per person per year was not based on productivity and was imposed only according to the number of books without any production mediation, there was an irrationality that was no different than a kind of head tax. there was.
 As such, there was an imbalance in the tax burden, with the landlords paying less and the poor and powerless peasants paying relatively more. Thus, taxation and washing in the late Joseon Dynasty faced a crisis based on this structure.
 This study intends to conduct a study on the background of the introduction of the Gyunyeok method in the late Joseon Dynasty and the negative effects of the gyeokgyeok method, focusing on historical literature and previous studies.

The Capital Asset Pricing Model as Modern Austrian Business Cycle Theory

According to Austrian macroeconomic theory, capital accumulation today generates supply tomorrow. Will that supply match tomorrows demand? In this paper we study this question in a multi-good and risky environment with an efficient financial system. Towards this end we develop a model based on the Capital Asset Pricing Model (CAPM), Rational Expectations, and Linear Homogeneous Production Functions. Within this framework we show how the financial system in the form of CAPM allocates resources across the different sectors in the economy so as to maximize the ratio of expected returns to a measure of risk like the standard deviation of returns for some initial time period t=0. In t=1 a Linear Homogeneous Production Function subject to a random productivity shock determines actual output and the structure of production. The link between t=0 and t=1 is Rational Expectations, the assumption that the subjective probability distribution in t=0 on which real investment decision are made is equivalent to the objective distribution generating the actual output/income in t=1. If total output is more (or less) than expected in t=0, we have a cyclical expansion (or recession) the magnitude of which depends on the spread of the subjective probably distribution in t=0. With this model we discuss: 1) monetary policy under a full reserve banking system with Central bank digital accounts for all; 2) an all-inclusive transaction tax to substitute for the U.S. present tax system; 3) the trade-off between economic growth and the cyclical volatility of the economy; and 4) the advantages and disadvantages of trade deficits.

Integrating Public Finance with Human Behaviour and Inclusive Growth – Case Study on Indian Tax System

This is a conceptual paper, the author discusses some fundamental assumptions regarding taxation. These assumptions need to be re-examined. The author has carried out a survey of fifty professionals in the field of tax administrations and based on discussions with them tried to identify the issue and perspectives for future. The author has found that over a period of time, progressive economies try to reduce tax rates, reduce number of tax payments, reduce number of time required on issues relating to tax compliances and simplify and computerize tax compliances, which create a better business environment. The author contend that there is a need to re-examine present tax system, present business system and present framework. They suggest a system which can promote and develop small and cottage industries and enable smaller business entrepreneurs to survive and grow. The author contends that there should be digital transactions using m-commerce and there should be transaction tax to encourage people to save and invest.

INDIVIDUAL TAXPAYERS’ PERCEPTION TOWARDS SELF-ASSESSMENT SYSTEM: A CASE OF SABAH

Undoubtedly, economic analyses are important to understand a tax system. However, in a democratic system, the taxpayer’s perception, evaluation and compliance with tax laws are of equal importance. This study attempts to explore the taxpayers’ acceptability towards a self-assessment system and also to investigate taxpayers’ perception on the present tax system. A survey was undertaken in Kota Kinabalu, Sabah, involving 195 individual salaried-taxpayers. Results of the study revealed that Malaysian taxpayers are satisfied with the present tax system. They see it as a simple and easy system. However, the study also revealed that the taxpayers welcome the change from the present system to the self-assessment system. They perceive that they are ready for it. Despite the taxpayers readiness toward a self-assessment system, most of the taxpayers did not know their responsibility under the new system. Moreover, they are unable to compute their own tax. However, most of them are interested in learning more about the Malaysian Income Tax System if they have the opportunity to do so. The taxpayers surveyed had a poor understanding of the tax laws. Thus, recommendations have been made to MIRB to increase the taxpayers knowledge and understanding of their obligation and rights as a taxpayer. The use of effective ways of communication and promotion of the self-assessment system have also been suggested.Keywords: self-assessment system, official assessment system, LHDN, knowledge of tax, perception

Goods and Services Tax and its Effect on Marketing

In this study an attempt is made to understand the impact of Goods and Services tax on various components of Marketing. GST is likely to be implemented from 1st April 2007 which is likely to bring drastic change in indirect tax system in India. Study deals with present tax system in India, GST, purpose of GST, and its impact on Marketing. GST is likely to give big push to marketing with reduction in product cost, distribution cost, storage cost, and distribution time with unified markets.

Taxpayers’ perceptions on tax evasion behaviour: an empirical study in Malaysia

PurposeThe success of self-assessment tax system is voluntary compliance with the tax laws. When tax evasion is seen as unacceptable, taxpayers will tend to evade tax less. Hence, the understanding of taxpayers’ attitude on tax morality towards a tax system has to be enhanced to minimize tax evasion cases. The purposes of this study are to examine the relationship between tax fairness, tax knowledge, enforcement level and social exchange towards taxpayers’ attitude of tax morality under the self-assessment system in Malaysia and also to identify the relationship between taxpayers’ attitude of tax morality and taxpayers’ perceptions on tax evasion.Design/methodology/approachData were collected from 400 taxpayers through a questionnaire and analysed.FindingsFrom the analysis, it has been found out that tax knowledge is the most important tax system characteristic that affects taxpayers’ attitude of tax morality. In addition, taxpayers’ attitude of tax morality is significant to taxpayers’ perceptions on tax evasion in Malaysia.Originality/valueThe findings of this study would be useful for the government to further improve the present tax system to increase voluntary tax compliance.

Issues in Reforms of Union Taxes in India

The correction of fiscal imbalances in India should focus on the root cause of disequilibrium – the government not being able to balance its consumption outlays with revenue receipts. Restructuring of public expenditure seems to be very difficult under the present circumstances. Hence, significant improvement will hinge increasingly on improvement in revenue collection through direct and indirect taxes. There is need for comprehensive reforms in direct and indirect taxes through decisive action in many crucial areas rather than marginal improvement on all fronts. Broadening of the tax base is necessary to ensure growth of revenue. In direct taxes, there is a need to analyse the extent to which taxpayers actually belong to the higher slabs than they reveal in their tax returns and non-filers should be brought into the tax net. In the case of central excise and service tax, there is need to build a strong mechanism to ensure filing of returns by all registered taxpayers. To improve tax collections, it would be desirable to ask firms and companies to pay tax in equal instalments and adopt ‘family’ as a unit of assessment. The exemption/threshold limit should not be raised from the present level and Indian tax system should have smooth progression The Indian tax system incorporates a number of tax preferences/incentives to promote different activities which result in huge tax expenditure in case of both direct and indirect taxes. Tax expenditures, despite their drawbacks, need to be retained in the Indian tax system. However, they should be well targeted and be linked to performances. There is also a need to check the problem of increasing tax avoidance and evasion through stricter imposition of penalties and following of vigorous prosecution policy. Efficient tax administration calls for building up of a professional cadre of administrators who may implement the tax system more equitably and efficiently. It is desirable that voluntary compliance be encouraged and non-compliance be penalized. There is need to minimize arrears of assessment and collection, pendency of appeals, issue quick refunds, and so on. The main challenge at the present juncture is to integrate the large number of Central and State taxes to address the problem of multiplicity of taxes. The introduction of the Goods and Service Tax would be a significant step in the field of indirect tax reform in India and pave the way for a national common market.

Choosing between different alcohol pricing and taxation strategies: a comparative policy appraisal using the Sheffield Alcohol Policy Model

BackgroundPolicies that increase alcohol prices effectively reduce alcohol consumption, one of the top three risk factors for global disease burden. Our aim was to appraise how different alcohol pricing policies balance competing priorities. MethodsWe built an econometric dynamic epidemiological model for England, combining survey and register data on alcohol purchasing, consumption, and 43 harms, and published price elasticities, relative risk, and alcohol attribution. We model five hypothetical taxation options each estimated to give a 10% reduction in average consumption: P1, a uniform 85% increase in existing duty; P2, a 22% sales tax based on product price; P3, a £0·35 per unit volumetric tax; P4, a £0·80 minimum unit price (MUP); P5, a £0·75 MUP with a volumetric tax of £0·30. Outcomes were consumption, annual alcohol-related deaths, hospital admissions, health-care costs, consumer spending, and government revenue. Uncertainty was assessed through sensitivity analyses. FindingsPopulation level health harm-reductions would be highest for increases in the present tax system (P1: deaths −3026, hospital admissions −179 000, health-care costs −£583 million) and for the MUP (P4: −3081, −169 000, −£574 million), and lowest for the sales tax (P2: −2852, −168 000, −£575 million). Harm reductions in high-risk drinkers would be highest for the two MUP options (P4: deaths −1764, hospital admissions −84 000, health care −£218 million; P5: −1712, −78 000, −£205 million), and lowest for sales tax (P2: −1267, −64 000, −£159 million). The overall greatest burden on consumer spending would be from a duty increase under the present system (P1 £3·2 million), and the lowest from a volumetric tax (P3 £2·0 million). The smallest extra annual expenditure for each moderate drinker would be achieved by MUP (P4 £17·80), whereas the largest extra expenditure would be from a tax rise in the present system (P2 £37·20). With the exception of the MUP-only policy, which would have a small negative effect on government revenue from alcohol (P4: 1·3%, −£121 million), all taxation policies would raise government revenue, by between £1·9 billion and £4·2 billion per year. InterpretationPricing policies can be implemented in ways that balance the priorities of increasing government revenue, maximising harm reductions, and targeting heavy drinkers, while protecting moderate consumers from excessive burden. FundingMedical Research Council and Economic and Social Research Council (grant G1000043).

Eine verteilungspolitische Beurteilung aktueller Reformkonzepte zur deutschen Einkommensbesteuerung / A Distributional Analysis of Recent Reform Proposals on the German Income Tax Rate

Summary The present paper investigates potential fiscal and distributional effects which emerge due to four reform scenarios on the German income tax rate. The analysis is based on a static simulation model for the German tax system using income tax micro-data. The data shows that changing the present progressive tax system to a flat-tax, which was proposed by the FDP in 2010, could reduce the tax revenue by 15 billion Euro. Such a tax regime would increase the unequal distribution and polarisation of net incomes. The IW Köln suggested an alternative tax rate in 2008. This regime would increase unequal distribution and polarisation of disposable incomes to a greater extent than the FDP-tax rate. An implementation of this income tax scale would go along with losses in tax revenue of 18.8 billion Euro. Likewise, the implementation of a 2009 SPD tax rate proposal would reduce tax revenue by 14.8 billion Euro. Although this regime would reduce unequal distribution, the effect on the polarization of disposable incomes is not definitely predictable. In contrast to all the other scenarios, the realisation of the recent SPD tax rate proposal from 2011 could enlarge tax revenue by 4.7 billion Euro. This tax regime would reduce unequal distribution and polarisation of disposable incomes even more than the present tax system.

TOP Tax System - A Common Tax System for All Nations

Tax system is a new tax system which can be used as a common tax system for all nations. This new tax system will be without present tax system’s all Direct and Indirect taxes accompanied by tax laws, tax exemptions, multiple tax collection departments to relieve 7 billion people of the world from the cobweb of ambiguous and complex tax structures, plethora of tax laws, mandatory and cumbersome accounting, auditing, tax returns and consequent quagmire of all tax related cases. Taxation, tax collection, tax enforcement, tax compliance, allocation of revenues to various ministries or departments; distribution of subsidies, implementation of welfare schemes and money supply into the economy are unified and integrated in the banking system. There will be no tax collection expenditure for the Governments and no tax compliance costs for the people either. Citizens need not maintain separate account books and submit tax returns annually for paying either Direct taxes on personal incomes or Indirect taxes while running business or industry. Yet, this new tax system envisages 20 to 30 % more revenues from single tax called TOP Tax” - than presently accruing revenues from multiple taxes collected by different tax collection departments/agencies. The present day trade barriers between the manufacturers and consumers; between the Stares within the country and between the nations can be totally removed to make the whole world into one fully open market.

Study on the Shortage and Reconstruction of Chinese Ecological Tax System

Guiding by the view of science-based development, the ecological tax system which also possesses the benefits of encouragement and financing capital should be gradually established, so the material benefits can stimulate and drive that the social pollution costs are translated into production costs and market price, and the policy and law objectives to control ecological pollution and improve ecological quality can be realized. According to the requirements of sustainable development, China present tax system should be adjusted, and the relatively perfect ecological tax system should be gradually established. In this article, we put forward main countermeasures including the taxation to ecological pollution tax, the reform to resource tax system, and the adjustments to corresponding articles of other tax types about environmental protection.

A Comparative Study of Taxation in Russia and Other CIS, East European and OECD Countries

This paper discusses the current state of taxation and public finance in the Russian Federation and compares some aspects of Russian public finance to other CIS and Eastern European countries and to selected OECD countries. The paper begins with a discussion of the present tax system and structure in Russia, then places the Russian system in perspective by comparing certain aspects of the Russian system to those of other countries. Comparisons of tax burden as a percentage of GDP are made with other former Soviet republics as well as selected OECD countries. A ranking is done to determine where Russia fits on a relative scale. Percentage breakdowns are also given by major tax category. Several comparisons are also made using the Tax Misery Index statistics. Interestingly, Russia does not fare too badly compared to some other countries in terms of tax burden and tax misery, although there is room for improvement.

The Fair Timing of Tax

The traditional understanding of broad-based tax systems contrasts an income tax with all forms of a consumption tax. The income tax, alone, includes the yield to capital in its base; consumption taxes do not. Simple financial analysis demonstrates the equivalence of the two most common classes of consumption taxation - prepaid, or wage-based, and postpaid, or sales taxes - under certain assumptions, most importantly including constant tax and interest rates between the periods in the model. Advocates of redistributive taxes insist on both progressive rates and an income base, in large part to tax the yield to capital; opponents clamor for flat-rate consumption taxes, often invoking Mill's celebrated argument against the income tax's double taxation of savings to support their case. Once progressivity is presumed, however - as its enduring popular appeal suggests it ought be - the traditional understanding is flawed. Asking a different timing question, when, in a taxpayer's flow of funds, ought progressive taxes be imposed?, casts tax systems in a new light. The present tax system emerges as an onerous wage-based one. A progressive cash-flow consumption tax, in contrast, emerges as the best - most consistent and principled - tax on the yield to capital, under just the conditions in which it is fair and appropriate to tax such yield. This gives a further reason to support a progressive cash-flow consumption tax, sounding in reasons familiar to income tax supporters. A consistent progressive cash-flow consumption tax will lower the burden of taxation when capital transactions (borrowing, saving, and investing) are used to smooth labor earnings within or between lifetimes (or taxpayers), and will increase the burden of taxation when capital transactions are used to enhance labor earnings within or between lifetimes (or taxpayers). Critical reflection based on a near century of experience reveals such a tax to give form to attractive normative ideals. The new understanding helps to show that the traditional and most common arguments for consumption taxation are not compelling. The best, most appealing case for a consumption tax does not rest on simple horizontal equity models, nor on claims about the economic, consequentialist importance of savings on an individual or an aggregate social level. Rather it is claims of fairness, in a social contractarian sense in the manner of John Rawls and other liberal theorists, that argue for a properly designed consumption tax - in part precisely because of the way such a tax sometimes but not all the times burdens capital and its yield, and in greater part because such a tax points the way towards greater, more meaningful progressivity in tax. The new understanding of tax yields important insights into pressingly practical matters of tax policy and design, and opens up an important window to critique contemporary trends in tax reform. The battle in tax policy should not be over income versus consumption taxation - as it has been for centuries - but rather over what kind of consumption tax to choose. Failure to address this question head-on has led tax policy to move, seemingly inexorably, towards the wrong choice, with the fate of progressive, redistributive taxation hanging in the balance.

The optimal supply of public goods in collective choice

The aim of this paper is to provide an appropriate method to estimate the elasticity of demand that is to be used to calculate the benefit share which is used for calculating the benefit-burden ratio for median voters and to investigate whether the present tax system leads to an efficient level of public sector output. In addition, the redistribution effects of the current tax system will also be discussed. The degree of bias when the environmental factor was not included in the production function is also considered.

The optimal supply of public goods in collective choice

The aim of this paper is to provide an appropriate method to estimate the elasticity of demand that is to be used to calculate the benefit share which is used for calculating the benefit-burden ratio for median voters and to investigate whether the present tax system leads to an efficient level of public sector output. In addition, the redistribution effects of the current tax system will also be discussed. The degree of bias when the environmental factor was not included in the production function is also considered.

Dilemmas of Fiscal Decentralisation: A Study of Local Government Taxation in Tanzania

Local taxes represent less than 6 per cent of total national tax revenues in Tanzania. However, the large number of these taxes, together with their unsatisfactory nature, means that their economic, political and social impacts are considerably more significant than their revenue figure indicates. This article reviews the main characteristics of the existing local tax system. It discusses how the present tax system emerged, and why it has been maintained for such a long period in spite of all its weaknesses. Finally, it considers options for reform.

The USA tax: a progressive consumption tax

progressive consumption tax is one of the most important ideas in tax policy in a very long time. Larry Seidman's book is an excellent exposition. Whether you are sympathetic or not, it deserves your serious consideration. -- Lawrence Summers, former Nathaniel Ropes Professor of Political Economy, Harvard University This is an excellent analysis of an approach to fundamental tax reform that has considerably more political appeal than the -- Rudolph G. Penner, Managing Director, Barents Group, a KPMG Company Although proposals for flat taxes have received a good deal of attention, a majority of Americans say that, for reasons of fairness, they favor a progressive tax. USA Tax: A Progressive Consumption Tax presents an alternative to both the present tax system and a tax. The USA (unlimited savings allowance) tax is a progressive consumption tax that differs fundamentally from our current tax structure in that it taxes consumption rather than income. In April 1995, the USA tax bill was introduced into the United States Senate. Whatever the fate of the bill, this book is an important contribution to the literature on the theory and design of a progressive consumption tax. The USA tax has two components--the household tax, which replaces the current household income tax, and the business tax, which replaces the corporate income tax. A fundamental purpose of the USA tax is to raise the level of national saving and investment. It accomplishes this by making all household saving and business investment in capital goods tax-deductible. Seidman describes the ideals on which the USA tax isfounded: the household component is based on the progressive personal consumption tax, and the business component is based on the consumption-type value-added tax (VAT). He then shows how the version of the USA household tax presented in the 1995 bill differs in critical aspects from the ideal of a personal consumption tax, and how it can be improved by amendments. Seidman devotes most of his book to the impact on saving, the issue of fairness, practical design options, simplification, and a variety of questions and criticisms. The book, written in straightforward language, will help guide the non-economist through the coming debates on the USA tax.

Contending With Corporate Tax Reform

Abstract Canada's oil and gas industry could be adversely affected by corporate tax reform proposals actively being considered by the Department of Finance in Ottawa. When the next set of proposals for tax reform is released later this year as promised by Finance, the industry had better be prepared to take a hard look. Introduction As if the oil and gas industry did not have enough problems to contend with, the sector of corporate tax reform threatens to pose a not inconsequential disruption for oil and gas investors and producers. Two federal budgets ago, in May 1985, Finance Minister Wilson tabled budget papers that were more massive in terms of volume than most federal budgets. Buried in this mass of documentation is a discussion paper entitled "The Corporate Income Tax System — A Direction For Change ", When the discussion paper was tabled over a year ago, reaction from the business sector was almost non-existent. By and large, the paper was regarded as nothing more than one more federal publication of mild academic interest. But, recent events suggest that this discussion paper for corporate tax reform could be the cornerstone for a series of changes to the tax laws which would have more profound and widespread effects for all sectors of the economy than any reform since 1971. No industry in Canada can afford to ignore the movement afoot in Ottawa for corporate tax reform. The May 1985 discussion paper states unequivocally that the present corporate income tax system is in need of re-examination. There is a noticeable sentiment in Ottawa that the current tax system is "distorting of market driven business decisions ", and that a revised system "could lead to a more efficient allocation of resources ". The paper sets out an "illustrative proposal ", which would result in a significant reduction in statutory tax rates for all corporations, coupled with reductions in the most rapid rates of write-off and the elimination of investment tax credits. The paper identifies four fundamental principles for corporate tax reform.Market efficiency — "The corporate tax system should interfere as little as possible with the market signals that form the basis of business decisions. "Certainty — "The corporate tax system should be stable over time, "Simplicity — "The corporate tax system should be as simple and certain in its application as possible. "Stability of tax revenues — "The corporate tax system should provide a predictable and stable revenue base for the federal and provincial governments. " According to the paper, tax reform would not be designed to raise corporate tax revenues — it would be revenue neutral. Present System The paper provides a capsule analysis of the present tax system. In particular, a handful of rules are identified as being in need of further scrutiny, including:the fast rate of write-off for certain classes of capital cost allowance, including oil and gas production and refining machinery and equipment;the 100% write-off of research and development expenditures;

GRANTS AND TAX RELIEFS AS INVESTMENT INCENTIVES*

This paper presents and applies a methodology designed to measure the extent of the investment incentives provided to U.K. farmers by the present tax system and the capital grants currently available. We identify and examine two aspects of these incentives, viz. enhanced profitability and increased financial feasibility, and investigate their sensitivity to changes in the rate of inflation and the marginal tax rate.

UNANTICIPATED INFLATION, TAXATION, AND COMMON STOCKS

This paper focuses on the effects of unanticipated inflation on the market value of equity in a system with corporation tax and historic cost depreciation. It is shown that there exists a unique combination of debt and equity under which inflation neutrality is obtained, Whether or not unanticipated inflation hurts or benefits the stockholders in a particular firm depends upon a number of conditions. These include the depreciation rate of its assets relative to the amortization rate of its debt. Finally, the present tax system is contrasted with a fully indexed system involving replacement cost depreciation and indexation