Tax Capacity Research Articles

НАПРЯМИ ПОСИЛЕННЯ СОЦІАЛЬНОЇ СПРЯМОВАНОСТІ ОПОДАТКУВАННЯ ДОХОДІВ ФІЗИЧНИХ ОСІБ В УКРАЇНІ

Оподаткування доходів фізичних осіб є одним з найбільших секторів податкової системи. Механізм його оподаткування поширюється на усіх громадян держави, а тому цей податок є дієвим елементом реалізації державної соціальної політики. Однак в Україні на сучасному етапі ця функція податку на доходи фізичних осіб не реалізовується.Саме тому метою статті стало дослідження чинного в Україні механізму оподаткування доходів фізичних і пошук напрямів його вдосконалення з метою посилення соціальної спрямованості цього сектору оподаткування.Податок на доходи фізичних осіб в Україні відіграє важливу роль у наповненні бюджетів різних рівнів. Однак детальне дослідження механізму його функціонування виявило низку проблем, що провокують значне соціальне розшарування населення, знижують рівень плато- і податкоспроможності громадян і сприяють формуванню високого рівня тіньових доходів. Так, у 2010—2016 рр. рівень останні зріс на 22 відсотки.Попри, здавалося б, широку базу оподаткування і лояльну ставку податку на доходи фізичних осіб, в Україні відзначається низький рівень частки податків на заробітну плату у валовому внутрішньому продукті держави, що свідчить про значні обсяги ухилення від оподаткування в цій сфері. Зокрема, 2016 року в Україні він становив 5,8 %, у той час як у країнах Європи — у середньому 18,6 %.Виявлені недоліки сприяли формуванню пропозицій з поліпшення механізму оподаткування доходів фізичних осіб. Так, першим кроком названо приведення показника неоподатковуваного мінімуму до рівня прожиткового мінімуму. Для посилення соціальної функції цього сектору оподаткування слід ввести прогресивну систему ставок податку, виходячи з обсягів отримуваних доходів. Наступним стане врахування коефіцієнта сімейного оподаткування при визначенні бази оподаткування. На підставі вдосконалення окреслених елементів запропоновано механізм поетапного реалізації концепції сімейного оподаткування, що має змінити чинну систему оподаткування доходів фізичних осіб.Запропоновані вдосконалення сприятимуть оптимізації рівня соціального спрямування оподаткування доходів фізичних осіб, підвищенню рівня життя громадян, зниженню рівня тіньового сектору і зростанню доходів бюджетів різних рівнів.

КОНЦЕПТУАЛЬНІ ЗАСАДИ ДЕЦЕНТРАЛІЗАЦІЇ В УМОВАХ ТРАНСФОРМАЦІЇ ДЕРЖАВНИХ ФІНАНСІВ

Присвячено аналізові стану реформування фінансової системи України в частині ефективного функціонування місцевої влади. Установлено, що, незважаючи на законодавче закріплення відповідних повноважень, невирішеними залишаються питання фінансової децентралізації. Потребує подальшого розвитку методологія вирівнювання податкоспроможності територій в умовах трансформації державних ресурсів. Визначено, що для удосконалення фінансового забезпечення видаткових повноважень, які передані місцевому самоврядуванню, слід переглянути нормативи відрахувань до місцевих бюджетів.Доцільним є перегляд методики розрахунку і використання коштів освітньої та медичної субвенцій. Установлено, що розподіл обсягу цих субвенцій між місцевими бюджетами повинен ураховувати чисельність населення внаслідок змін в адміністративно-територіальному устрої окремих територій за рішенням Верховної Ради України, а також кількість внутрішньо переміщених осіб із територій, на яких тимчасово не здійснюються повноваження органів державної влади. Доведено, що розширенню можливостей органів місцевого самоврядування сприятиме запровадження нового механізму розрахунку горизонтального вирівнювання місцевих бюджетів, згідно з яким реверсна дотація визначалася за групами бюджетів: окремо за бюджетами міст обласного значення, окремо за зведеними бюджетами районів та окремо за бюджетами об’єднаних територіальних громад.Запропоновано створити оптимальний перелік повноважень місцевого самоврядування, упорядкувати обсяги видатків на виконання повноважень, які передаються на місцевий рівень. Це сприятиме забезпеченню стабільності міжбюджетних відносин, удосконаленню системи оподаткування, позитивно вплине на фінансову спроможність місцевого самоврядування і надасть можливість зміцнити їхню ресурсну базу.

Assessing the Revenue Raising Capacity of the Local Government of Bongabon in the Philippines

One source of funding for sub national government is imposition of taxes. It is imposed upon individual and corporation within the territorial jurisdiction of the municipality. Local governments are funded through Internal Revenue Allotment (IRA) provided by the National Government. The purpose of the study is to assess the local revenue generation capacity of the municipality of Bongabon, Nueva Ecija in the Philippines. The paper revealed that its calculated collection efficiency is only 20.6% of the total collectibles on Real Property Tax. The average local revenue raising capacity of the municipality of Bongabon, Nueva Ecija within the period of 7 years (2011 to 2017) is only 40.9 % of the externally sourced revenue or IRA. The study concluded that the municipality of Bongabon, Nueva Ecija remains dependent on national government when it comes to funding. The study also identified various constraints to efficient tax collection while local citizens perceived the LGU capacity to collect tax negatively. More studies on tax capacity are encouraged to come up with sufficient baseline data that may serve as inputs to policy making and solve the problems of tax collection in the local level.

Disparate geography and the origins of tax capacity

We establish a conceptual and empirical link between the geographic distribution of economic endowments within a nation and long-run fiscal capacity. Economic geography informs elites’ incentives to facilitate large-scale central taxing bureaucracies. Sectoral economic advantage also provides them with leverage to transform these state-building incentives into policy and stable institutional equilibria. We argue that unequal economic endowments across the geography of a nation exacerbate distributive tensions. Political disagreement over the size and the scope of the state hinder centralized investments in state capacity to collect taxes. Using detailed sub-national data and indicators of geographic distribution, we demonstrate global patterns of sub-national economic geography, and how these patterns are related to sub-national variation in economic productivity. We show that divergence in sub-national economies varies across the world and is related to predictable differences in the size of the fiscal state.

Formation of budgets of local self governance in the system of social development of territorial communities

The subject of the study is theoretical and practical issues of the formation of budgets of local self-government in the system of social development of territorial communities. The purpose of the study is to reveal the priority tasks for improving the system of formation of budgets of local self-government. Research methods. The paper uses a set of scientific methods and approaches, including systematic, structural, comparative, factor methods, which allowed to realize the conceptual unity of the research. Results of work. The article reveals the role of local self-government budgets in the development of administrative-territorial units. A number of legislative and normative acts on regulation of the process of formation of budgets of local self-government are generalized. The priority tasks of the budget policy concerning support of territorial communities, strengthening of their tax capacity, increase of efficiency of coordination of activity of bodies of state power and local self-government are determined. The article is based on the establishment of an effective institutional framework for the formation of local self-government budgets in the system of social development of territorial communities. The field of application of results. System of state financial regulation, budgetary policy, budget system. Conclusions. The development of the budget system is possible by ensuring the sustainability of the formation of local government budgets in the system of social development of territorial communities, activating their innovation-investment component and strengthening the influence on the socio-economic development of administrative-territorial units. The importance of further enhancing the effectiveness and efficiency of the formation of local government budgets is conditioned by the need to increase the efficiency of the management of public financial resources in the conditions of their constraints, the development of a strategy for the development of local government budgets and the creation of institutional conditions for increasing their self-sufficiency, taking into account the cyclical nature of economic fluctuations and the impact of exogenous and endogenous factors in financially -budgetary environment. At this stage, the important task is to implement effective transformations of the system of forming local budgets by supporting voluntary associations of territorial communities, which necessitates the increase of efficiency and efficiency of administrative decisions of executive bodies and local governments in the field of strategic budget planning. It is advisable to improve the system of monitoring the socioeconomic efficiency of local government budget expenditures by using qualitative and quantitative indicators, introducing medium-term budget planning at the local level, adhering to the principle of transparency and accountability of local self-governance bodies to the public. Important tasks are improving the system of formation of local budgets taking into account application of modern financial-budget methods and tools; Creation of effective incentives to ensure the interest of local self-government bodies in the growth of their own income base and increase their level of responsibility for the use of budget resources; ensuring adequate revenues to local government budgets, and increasing the efficiency of the use of budget resources.

Оценка налогового потенциала ресурсных налогов, анализ динамики и структуры налоговых платежей

Оценка налогового потенциала ресурсных налогов, анализ динамики и структуры налоговых платежей

Improving Tax Revenue Performance in Tanzania: Does Potential Tax Determinants Matters?

Developing countries face challenges in achieving tax frontier, which lead to low tax capacity that cause budget imbalances and enforces government to finance recurrent expenditure or developing projects through loans, and risking a country into higher debt dependence. Performance of tax revenue caused by endogenous and exogenous factors but improving some fundamental factors in the economy tends to improve tax revenue performance significantly. This paper intends to establish evidence on potential tax determinants which influence tax revenue performance from 1999 to 2016; the analysis tested the developed hypothesis of whether potential tax-determinant influence tax performance in Tanzania. A model includes four-factors; economic, structural, institutional, and financing factors, results revealed potential tax determinants significantly influence tax revenue performance. Mining share and loan indicate positive effects and statistically significant while government effectiveness affects tax revenue negatively and significantly. Other variables; manufacturing, construction, transportation, services, the rule of law, regulation quality, and control corruption were positively affected tax revenue while foreign direct investment negatively affects tax revenue, both insignificantly. Findings suggest to emphasise more on improving share on influential sectors with caution on FDI and mining, increase dependence in non-agriculture sector, increase transformation change in industrialisation, informal sector, and urbanisation with the intention of boosting economic growth and bring more payers into the tax net.

Tributação como instrumento de redução das desigualdades no Brasil

O presente artigo tem o objetivo de demonstrar como a desigualdade de renda e de riqueza podem ser reduzidas através de um sistema tributário mais equânime. A tributação baseada sobre os bens de consumo e serviços aumentam as desigualdades de renda, uma vez que a carga tributária atinge significativamente a parcela da população de classe baixa e média. Os seus efeitos regressivos acarretam problemas na distribuição de renda, bem como no acesso aos direitos básicos do cidadão brasileiro. Assim, no primeiro momento, analisar-se-á como é distribuída a carga tributária brasileira, para que, posteriormente, verifiquem-se os princípios da capacidade contributiva e progressividade dos impostos como instrumentos hábeis e eficazes para a redução da desigualdade de riqueza. Em termos gerais, o artigo aborda a real possiblidade de diminuir a concentração de riqueza e desigualdade de renda através da tributação, isto é, tributar mais o patrimônio e renda, diminuindo a incidência sobre os bens de consumo e serviços, respeitando a capacidade econômica do contribuinte.

Esforço fiscal em Portugal: uma avaliação no período 1995-2015

O nível de fiscalidade praticada por um país tem implicações nos planos económico e social, podendo ser aferido por recurso aos conceitos de receita fiscal, de carga fiscal e de esforço fiscal. O esforço fiscal é expresso por um índice que relaciona a carga fiscal (rácio entre a receita fiscal e o PIB) com uma de três medidas alternativas: o PIB per capita, uma carga fiscal padrão e a capacidade fiscal da economia. Com base em dados para o período 1995-2015 e para os 28 Estados-membros da União Europeia, procede-se à estimação dos índices de esforço fiscal através de metodologias diferentes. Em três dos quatro índices calculados, os resultados sugerem que o esforço fiscal em Portugal seguiu uma tendência de redução entre 1996 e 2010 e de aumento no período de implementação do programa de ajustamento económico e financeiro de 2011-2014, sem que, no entanto, tenham sido atingidos os valores observados em 1996. No quarto índice calculado, os resultados apontam no sentido de uma tendência de aumento do esforço fiscal em Portugal desde 1996. A evidência empírica sugere ainda que o esforço fiscal em Portugal tem sido inferior à média dos países da União Europeia.

Determinants of Taxable Capacity in Nigeria

This study is centered on the determinants of taxable capacity in Nigeria, with taxable capacity viewed as the ability of the taxed person to bear the burden of the tax in relation to their source of income without experiencing a reduction in standard of living, or margin of profit and investment in the case of firms. The study employed desk survey research design, and data obtained from secondary sources and analysis conducted using the ordinary least square technique. The results from the regression analysis and the test of hypotheses revealed that the relationship between inflation and taxable capacity in Nigeria was negative and statistically insignificant. Also, the results showed that both the degree of economic openness and the level of economic development positively and significantly affected taxable capacity in Nigeria. The study recommended that the Nigerian government should create an enabling environment that will facilitate international trade and provide the necessary facilities for the efficient and effective administration of taxes on the income generated from the global market as these will go a long way in providing revenue for the government.

Relationship between Level of Per-capita Income and the Share of Direct Taxes in Tax Revenue in India-the Recent Trends and Implications

Tax revenue, collected through direct and indirect taxes, forms the major part of the annual revenue of the Government. The relative shares of these two groups of taxes in the total tax revenue of the government vary depending on the level of economic development of the country. It is generally held that in an underdeveloped country with low level of per-capita income and low taxable capacity of the people the share of indirect taxes in total tax revenue is high relatively to the share of direct taxes. As the economy of the country develops and the level of per capita income goes up, bringing a larger section of the population within the direct taxes’ net, the share of direct taxes in total tax revenue tends to rise. This paper attempts to examine whether this generally held view is applicable to the Indian economy also. This it does by regressing the share of direct taxes in total tax revenue on the level of real per capita income of the country using a simple two variable linear regression model. The period covered by the study is the fifteen year period from 200001 to 2014–15, and the study finds that the direct relationship between the level of real per capita income and share of direct taxes in total tax revenue holds good in the Indian economy as well.

Modernization of the Tax Administration System: A Theoretical Review of Improving Tax Capacity

The canons of transaction theory requires taxation to rest on the principles of justice, certainty, comfort, and economics. However, as the government continues to demand for development finance and increasingly depend on tax revenues, the aforementioned principles have been neglected in taxation as can be empirically observed in the complaints, tax avoidance efforts, and tax revenue in Indonesia. The lower tax revenues of Indonesia compared with those of other countries indicate that the tax reforms implemented in the country from 1984 to date have produced sub-optimal results and require realignment. The reformation or modernization of a tax administration system aims to improve the effort or performance of tax collecting authorities. Such reformation may be conducted individually or by group to achieve more efficient, economical, and rapid outcomes. The modernization process focuses on organizational structure, procedure, strategy, and culture. In order for such modernization process to succeed, the tax structure must be simplified, appropriate reform strategies must be developed, and a strong political commitment to reforming the tax administration system must be ensured.

Comparative analysis of local taxation in Kazakhstan and Turkey

Return of duties matter in regions local budgets of Kazakhstan is considered in this article. The important role and value of local budgets, which may be considered a financial base of many-sided activity of local authority bodies and management, is reviewed in the paper, as well as the problems of local budgets in Kazakhstan. On the basis of statistical data on the dynamics of tax revenues, the budget of Kazakhstan is analyzed, along with the role of local taxes in regions’ budgeting of Kazakhstan. Special emphasis is given to the theory of fiscal federalism. I also review the international experience of the local taxation on the example of Turkey, focusing on Kazakhstan and Turkish experience of national income redistribution through the budget, as well as relying on the Aktyubinsk region as a case study for budget implementation. On the basis of the conducted research problems of local budgeting, I reveal the redistributions of receipts through the republican budget. The author has drawn conclusion that the level of tax revenues and tax capacity of the region significantly influence opportunities and quality of economic growth of the region. The author suggests that budgeting of all levels has to be based on the scientific forecast of revenues of the budget, develop technique of forecasting profitable opportunities of local budgets.

TAX POTENTIAL OF THE REGION, PECULIARITIES OF ITS DEVELOPMENT AND IMPLEMENTATION

The slowdown in economic growth highlights the problem of developing tax capacity at various levels, therefore the article is devoted to the consideration of practical aspects of the assessment of the tax potential. On the example of the Belgorod region, trends in the development and increase of the tax potential were identified, measures of activation of the elements of the structure of the potential, which are essential for the budget, were proposed.The paper uses methods of comparative analysis, analysis of key indicators of tax and non–tax revenues. Conclusions are made on the need to prioritize areas for the development of tax capacity, to increase the region's independence and to create tax conditions for conducting entrepreneurial activity in the territory.

Winter is Coming: Tax Policy for the Coming Bitter Hard Times: A Review of Robert J. Gordon, The Rise and Fall of American Growth

The United States has always defined itself in terms of great optimism and progress. For long periods, that self-definition was accurate. It no longer is. Robert J. Gordon’s magisterial economic history, The Rise and Fall of American Growth, describes 1870-1970 as the miracle century that improved the real standard of living tenfold. For the future, says Gordon, the United States faces an anemic growth rate of less than a third of a percent per year, and — even worse — only the richest tier will see growth. For tax, the realistic expectations of slow future growth mean a high danger of collapse in our ability to run deficits or borrow money well within the decade. Federal creditors have been extraordinarily generous to the U.S. government, accepting interest below the expected rate of inflation. They have assumed that federal debt is risk free. If our creditors lose faith in our ability to repay debt, or believe that we will just pay it off with inflated paper, then the debt will no longer be treated as risk free. The loss of faith will probably not be just a squeeze but a collapse. The increasing inequality of America means we must follow the money to reach the broad taxable capacity. We need to increase the efficiency of tax and shift the burden of tax to richer taxpayers — not with higher rates, but by better descriptions of their economic resources.

Tax capacity in the system of fiscal federalism and promotion of regional development

Tax capacity in the system of fiscal federalism and promotion of regional development

Domesday book: An early fiscal, accounting narrative?

Domesday Book is one of the most important documents in English history. It has been much studied by social, economic and institutional historians. At its heart it is an accounting document. Domesday Book of 1086 is regarded as a landmark in accounting history, primarily because it heralded a written system of government accounting in England. It introduced an administrative framework from which eventually the English Exchequer and charge and discharge accounting evolved. Domesday Book was compiled during one of the most significant periods in English History just after the Conquest of England by William I. It reflected new King's need to consolidate his power. The purpose of this article is to examine Domesday Book as an historical accounting record, concentrating in particular, on one shire: Herefordshire. It shows how Domesday Book provided the king with comprehensive information about individual landowning and taxable capacity. In addition, Domesday Book is contextualised within the social and economic conditions of the time. Domesday Book is shown to be a device for royal consolidation, a political expression of royal power and a vehicle to raise taxes. It also provided the administrative and territorial basis upon which the Exchequer's embryonic disciplinary power could be developed.

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. We cannot think that the tax revenues, which constitute the largest portion of public revenues, can be unlimitedly collected. Hence, it has been clearly seen that the efforts to collect the taxes unlimitedly have caused social problems and crises. The tax capacity, which is one of the ratios used for determining the taxable portion of income level of a country, is one of the generally accepted ratios. This limit varies depending on the countries and time period. In our study, by determining the methods that are used for calculating the tax capacity in our literature review, we aimed to calculate the tax burden and Turkey’s tax capacity level between the years 1984 and 2012. As the dependent variables in our study, Tax Revenues / GDP was used and, as independent variables, Value Added of Agriculture (% of GDP), income per capita, population growth ratio, foreign trade percentage, annual GDP growth rates (%), corruption index, and the Bureaucracy Efficiency Index, annual GDP growth rate (%) data were used, and it was concluded that foreign trade influenced the tax capacity positively, while the agricultural value added had negative effect. In our study, even though a generally balanced course is seen between actual tax burden and tax capacity from 1984 to 2012, it can be easily seen that the tax collection was generally lower than the tax capacity.

Colonial State Formation Without Integration: Tax Capacity and Labour Regimes in Portuguese Mozambique (1890s–1970s)

AbstractSamir Amin (1972) divided the African continent into three “macro-regions of colonial influence” with distinct socio-economic systems and labour practices: Africa of the colonial trade or peasant economy, Africa of the concession-owning companies, and Africa of the labour reserves. We argue that Mozambique encompassed all three different “macro-regions” in a single colony. We reconstruct government revenue (direct/indirect taxes) raised at a district level between 1930 and 1973 and find persisting differences in the “tax capacity” of the three regions throughout the colonial period. The tax systems, we claim, developed in response to existing local geographic and economic conditions, particularly to labour practices. Portuguese colonial rule adapted to and promoted labour practices such as migration and forced labour to maximize revenue. The extent to which the lack of integration played a role in the post-colonial state and fiscal failure should be studied further.

Tax burden and tax capacity of regions: An analysis of the interaction

Tax burden and tax capacity of regions: An analysis of the interaction