Effective Tax Research Articles

The Facts, Causes and Effects of Carbon Tax

Abstract: The significance of climate change is growing, prompting individuals to actively reduce greenhouse gas pollution, promote the use of renewable energy sources, and advocate for sustainable development. Carbon taxes have become an important policy tool for attaining sustainable development. The purpose of this article is to analyze the emergence of carbon taxes. The research objective is to analyze the feasibility and the efficacy of imposing a carbon tax. The research highlighting the importance of carbon taxes in effectively eliminating greenhouse gas pollutions by analyzing countries that are already implementing them, designing income neutral carbon taxes to balance environmental benefits and economic growth, and listing options for various subsidies after taxes. The study is significant because it provides a thorough assessment of the effects of carbon taxes and suggests feasible policy suggestions. The government should consider the economic situation and people's income when designing the level of carbon tax and use more tax revenue to invest in new energy to achieve long-term low carbon. Wind and solar energy will be the main energy sources in the future. Under appropriate policies, carbon tax can achieve low-carbon and maintain GDP.

A DYNAMIC ANALYSIS OF THE IMPACTS OF A CONSUMPTION TAX INCREASE AND A PRODUCTIVITY SHOCK: CALIBRATED FOR THE BRAZILIAN ECONOMY

Objective: Analyze the effects of high consumption tax on key macroeconomic variables. Method: The analysis employs both a Dynamic General Equilibrium (DGE) model and a Dynamic Stochastic General Equilibrium (DSGE) model, calibrated to the Brazilian economy. The models simulate the impact of an increase in the consumption tax on key macroeconomic variables and the impact of a productivity shock in an economy with and without taxation, respectively. Results and Discussion: The results show that an increase in the consumption tax leads to a gradual decline in the capital stock and a sharp reduction in labor supply. Furthermore, productivity shocks have weaker positive effects on investment, output, consumption, and the capital stock in an economy with high taxation compared to one without it. The discussion emphasizes the importance of these findings in understanding the trade-offs between taxation and economic activity. Research Implications/Value: The findings suggest that effective allocation of tax revenues—such as investments in infrastructure, education, and technology—is essential to mitigate the negative impacts of consumption taxes on economic performance and foster long-term productivity and growth.

Problems and challenges of development of Ukraine: investment and personnel aspect

In the conceptual and methodological sense, the article considers war as a force majeure factor, the action of which has multifaceted negative consequences in the form of increasing risks of physical destruction of human and material resources, deterioration of their quality parameters, in particular, the mental and physical state of health of the population. The magnitude and scope of the loss of national wealth as a result of the full-scale war of the Russian Federation against Ukraine deepened the previously formed contradictions and asymmetries of a diverse nature in the economic system of our country. Socio-economic consequences are manifested in large-scale emigration, the appearance of forcibly displaced persons, a shortage of qualified labor, an asymmetry between demand and its supply in the domestic labor market, and a decrease in the number of jobs. Restoration of life-supporting objects of national wealth is considered as an objective prerequisite for the existence and victory of our state in this war. The article substantiates the leading role of state regulation in recovery by using a set of forms and methods of centralized influence on its organization and planning, presents the principles of participation of international partners in it. In the context of the leading role of the regulatory influence of the state on the reconstruction processes of Ukraine, the need for a systematic approach to solving the tactical and strategic tasks of restoring the economic potential of our country is substantiated. When developing and choosing a model for its restoration, priority should be given to the economic interests of domestic investors, employers, and workers. It was determined that its implementation allows to ensure the achievement of multifaceted positive results in the reconstruction of the economy of Ukraine. Objectively necessary prerequisites for the latter are the management of modernization processes by representatives of Ukrainian entrepreneurship, whose activities are based on the principles and principles of corporate social responsibility of business. In the conditions of war, this involves ensuring the functioning and development of enterprises located in the territory controlled by our state, employment of forcibly displaced persons, improvement of their welfare, compliance with laws and payment of all taxes, establishment of public-private partnership between socially responsible business and state institutions. Investing in rebuilding the economic potential of Ukraine is considered an objective phenomenon that is under the influence of state regulatory levers, the use of which is aimed at creating a favorable investment climate in the country. The negative impact on its state due to the lack of effective taxation, imperfection of land legislation, irrationality of the banking system, the absence of a national state credit investment company functionally aimed at identifying investment priorities with their technical and economic justification, control over the provision of benefits, the annexation of Crimea, the occupation of parts of the eastern oblasts and the conduct of military operations there, shelling of populated areas, which increases the likelihood of investment risks.

Assessing the Financial Effects of Value-Added Tax (VAT) on University Students' Purchasing Behavior in Oman

Assessing the Financial Effects of Value-Added Tax (VAT) on University Students' Purchasing Behavior in Oman

Downward Revision of Investment Decisions after Corporate Tax Hikes

This paper estimates the causal effect of corporate tax hikes on firm investment based on more than 1,400 local tax changes. By observing planned and realized investment volumes in a representative sample of German manufacturing firms, we can study how tax hikes induce firms to revise their investment decisions. On average, the share of firms that invest less than previously planned increases by 3 percentage points after a tax hike. This effect is twice as large during recessions. (JEL D22, E32, G31, H25, H32, H71, L60)

Examining the effectiveness of dissuasive taxes as a policy tool for reducing tobacco and alcohol consumption in Cameroon: A welfare and microsimulation analysis

Deterrent taxes are a crucial policy tool for reducing the consumption of harmful products like tobacco and alcohol. However, assessing dissuasive taxes impact different income groups is important to ensure that their burden is not disproportionately borne by low-income households. This study examines the effectiveness of deterrent taxes as an economic policy tool for reducing tobacco and alcohol consumption in Cameroon. We analyse the impact on household welfare and distributional effects using microsimulation analysis. The data come from the Cameroon Household Living Conditions Survey and the 2022 tax records. Our methodology is based on a dynamic computable general equilibrium (CGE) model enriched with an addiction model. The results indicate that deterrent taxes can significantly reduce the consumption of these harmful products but also have regressive effects on low-income households. In response, we recommend the adoption of a progressive tax structure and the establishment of targeted support programmes to mitigate the negative impact on vulnerable populations.

Tax consequences and the principle of impossibilium nulla obligatio est and the internal morality of the law

The article contains considerations in the context of the constitutionality of taxation of the acquisition of inheritancewhen the subject of the inheritance is only real estate. The considerations are made in the context of theRoman paremia impossibilium nulla obligatio est (no one can be obliged to do the impossible) and Lon LuvoisFuller’s concept of the internal morality of law. The considerations concern the feasibility of the tax structure dueto financial aspects.

The Effects of Taxes on Income Distribution Justice

One of the most important economic problems that countries have faced from the past to the present is income inequality. Income distribution is an important indicator that allows us to understand the social and political structures of societies by revealing how the income gap between the rich and the poor in a country changes. Thus, income redistribution or income justice is one of the important goals of fiscal policy. Taxes are also important intervention tools that economic management has in achieving this goal. In this context, this study aims to examine the relationships between different types of taxes and income distribution in the Turkish economy during the period from 2002 to 2022 by using markov regime switching analysis method. The analysis results indicate that, during the period covered by the study, indirect taxes have a positive effect on income distribution, while taxes based on declaration have a detrimental effect on income distribution.

Exploring the drivers of ecological footprint: Impacts of road transportation infrastructure, transport tax, and environment technologies

This study explores the dynamic effects of road transportation infrastructure, transport taxes, economic growth, trade openness, and environmental technologies on the ecological footprint using three quantile regression techniques: Simultaneous, Powell, and Method of Moments Quantile Regression (MMQR). These variables are selected for their significant influence on both economic outcomes and environmental sustainability, reflecting the interconnectedness of transportation systems, government policies, and technological advancements in shaping ecological impacts. Based on panel data from 19 European countries between 1995 and 2020, the results reveal that investments in road infrastructure and higher transport taxes contribute to reducing ecological footprint. At the middle and high quantiles, advancements in environment-related technologies further decrease the ecological footprint, whereas trade openness tends to worsen ecological quality. Importantly, the relationship between GDP and the ecological footprint follows an inverted U-shape, confirming the Environmental Kuznets Curve (EKC) hypothesis across all quantiles, which suggests that economic growth can support environmental sustainability in the long run. These findings are validated by robustness checks using fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and canonical cointegration regression (CCR) models. Key policy implications include the need for targeted investments in road infrastructure and transport tax strategies, tailored to national contexts, along with technology-driven strategies to curb environmental degradation. Lastly, the panel causality test reveals unidirectional causality from economic growth, road transportation infrastructure, and environment-related technologies to ecological footprint, highlighting their significance as short-term contributors to environmental improvement.

Intergenerational persistence of poverty in five high-income countries.

Childhood poverty increases the likelihood of adult poverty. However, past research offers conflicting accounts of cross-national variation in the strength of-and mechanisms underpinning-the intergenerational persistence of poverty. Here the authors investigate differences in intergenerational poverty in the United States, Australia, Denmark, Germany and the United Kingdom using administrative- and survey-based panel datasets. Intergenerational poverty is decomposed into family background effects, mediation effects, tax and transfer insurance effects and a residual poverty penalty. The intergenerational persistence of poverty is 0.43 in the United States (95% confidence interval (CI) = 0.40-0.46; P < 0.001), compared with 0.16 in the United Kingdom (95% CI = 0.07-0.25; P < 0.001) and 0.08 in Denmark (95% CI = 0.08-0.08; P < 0.001). The US disadvantage is not channelled through family background, mediators, neighbourhood effects or racial or ethnic discrimination. Instead, the United States has comparatively weak tax and transfer insurance effects and a more severe residual poverty penalty. If the United States were to adopt the tax and transfer insurance effects of its peer countries, its intergenerational poverty persistence could decrease by more than one-third.

Cumulative Effect of Debt and Tax on Firm Value: Optimal Capital Structure Theories in the Light of EMM

Cumulative Effect of Debt and Tax on Firm Value: Optimal Capital Structure Theories in the Light of EMM

The implementation of carbon tax as an emission reduction instrument policy in the Nordic countries: Pigovian tax effect analysis

The implementation of carbon tax as an emission reduction instrument policy in the Nordic countries: Pigovian tax effect analysis

Revisiting the Double Dividend Hypothesis with the Load Capacity Factor

The aim of the paper is to test the validity of the double dividend hypothesis in the five OECD countries with the highest environmental taxes (Türkiye, Slovenia, Latvia, the Netherlands and Denmark) using panel data analysis. With this motivation, the paper analyses the effects of environmental taxes on the load capacity factor and unemployment through two models for the period 1997-2022. According to the empirical findings, environmental taxes are cointegrated with both the load capacity factor and unemployment. The coefficient results of the first model reveals that environmental taxes positively affect the load capacity factor in Türkiye and Slovenia as well as at the panel level. Environmental taxes cause environmental degradation only in Denmark. In the second model, environmental taxes reduce unemployment in Latvia, the Netherlands, Denmark and at the panel level. In sum, the paper confirms the double dividend hypothesis for the panel.

Effectiveness of Tax Incentives in Promoting Foreign Direct Investment in India

Effectiveness of Tax Incentives in Promoting Foreign Direct Investment in India

Pengaruh Perencanaan Pajak dan Penghindaran Pajak terhadap Nilai Perusahaan dengan Tranparansi Sebegai Variabel Moderasi (Studi Kasus pada Perusahaan Sektor Kuangan yang Terdaftar di Bursa Efek Indonesia dengan Transparansi Informasi Sebagai Variabel Moderasi)

The study aims to empirically examine and prove how tax planning and tax avoidance affect firm value, with information transparency as a moderating variable. This research utilizes a quantitative approach applied through causal research methods. The sample was selected using purposive sampling technique, and data analysis was performed using Eviews 12 software. The sample consists of 48 data points from 16 financial sector companies listed on the Indonesia Stock Exchange for the period 2020-2022. The data analysis technique employs multiple regression analysis and moderated regression analysis (MRA). The results of this study indicate that tax planning has no effect on firm value. Tax avoidance does not impact the value of the company. Information transparency can strengthen the effect of tax planning on firm value, and information transparency can enhance the impact of tax avoidance on a company's value.

Determinan Belanja Modal Pemerintah Kabupaten/Kota Di Provinsi Sumatera Selatan Periode 2018-2022

This research aims to determine the effect of regional taxes, regional levies, and other legal income on district/city capital expenditure in South Sumatra Province, which consists of 17 districts/cities in 2023. The sample collection technique used in this research is sampling. fed up. This research uses secondary data with data hypothesis testing tools using Static Product and Service Solutions (SPSS) software version 26, with data analysis methods using multiple linear regression. The results of partial hypothesis testing show that regional tax variables and regional levies have a negative effect on capital expenditure. Furthermore, the results of simultaneous hypothesis testing show that the regional tax variables, regional levies, and other legal income variables together have a negative influence on capital expenditure

Modeling and empirical evidence of the impact of implementation of sugar sweetened-beverages tax to reduce non-communicable diseases prevalence: a systematic review.

The surge in non-communicable diseases (NCDs) has been linked to excessive sugar-sweetened beverage (SSB) consumption. In response, the World Health Organization advocates for SSB taxes as a preventive measure. This study conducts a systematic literature review, encompassing simulation modeling and empirical evidence, to evaluate the effectiveness of SSB taxes in diminishing NCD prevalence. A systematic search from August 2002 to August 2022, utilizing databases like ScienceDirect, PubMed, Google Scholar, Wiley Online Library, Springer, and ResearchGate, identified 29 relevant articles worldwide following PRISMA 2020. The Critical Appraisal Skill Programme (CASP) 2018 tool was employed for economic evaluation. Among the selected articles, 22 utilized simulation models in group of countries such as South Africa, the US, the UK, Asia (Philippines, India, Indonesia, Thailand), Australia, and Europe (Germany), while seven were based on US and UK evidence. Simulation modeling consistently demonstrated that SSB taxes significantly reduced NCD incidence, prevalence, and mortality, also bolstering government revenue. Tax rates in simulations ranged from 10 to 25%. However, empirical evidence indicated a limited impact, primarily due to low tax rates. Notably, a UK-specific tax led to a 2.7% reduction in SSB sugar purchases and 40.2% higher purchases of no-levy drinks. The findings suggest that while simulation models demonstrate the potential effectiveness of SSB taxes in reducing NCDs, empirical evidence reveals there is no significant effect of the SSB tax, Based on the study conducted in this study, the SSB tax is not effective in reducing the prevalence of NCDs due to consumer preferences that have not changed. , likely due to the implementation of lower tax rates and failure to fulfill the assumption of subtitution product, physical activity, and so on. The study highlights that SSB tax is not effective in reducing the prevalence of NCDs due to consumer preference that have not change. Multi-actions are needed to support the sustainability of the implementation of the SSB tax, including education and promotion of healthy lifestyles and encouragement to reformulate SSB products by industry.

An examination of direct and indirect taxation in OECD countries and the case of Greece

This paper attempts to analyze and interpret the principles of direct and indirect taxation. Initially, a theoretical approach to the general concepts and principles governing tax law is presented. It is followed by a presentation of the Greek tax and financial system. The key points demonstrating the harmonization of tax legislation, in accordance with the OECD (Organization for Economic Cooperation and Development) guidelines so far are highlighted. Any future reform of the Greek national tax system should incorporate the fundamental principles of national tax policy. Additionally, it must be in line with OECD principles and guidelines. The further implementation of the Organization's recommendations will shift the balance between direct and indirect taxation, leading to strengthening the first and reducing the second. Over the last decades, the ratio of direct to indirect taxes has been on the increase, particularly in developed countries. The main reason is that direct taxation is socially just and effective. Direct taxation is attributed by the liable person, while indirect taxation is transferred according to the ability of each person to react to the relevant market. The OECD supports, for member countries, the strengthening of direct taxation, which takes into account income and other social criteria and satisfies both the criterion of efficiency and the criterion of fair distribution of economic burdens. On the contrary, indirect taxation is reduced to inversely progressive taxation in terms of the income of consumers and is not consistent with the OECD principles of socially just and effective taxation in economically developed countries. The taxation of the citizens in general follows the principle of the citizens contributing to the public burdens according to their powers, for there is nothing more unjust than to treat unequal men as equals. From this proportional treatment of the taxing units, the constitutional principle of equality is also satisfied by reflection.

Determinants of Tax Regulations Referring to ESG Principles on Company Performance in Indonesia

Purpose: This study examines ESG integration in Indonesia's tax regulations and their impact on financial performance, focusing on green investments.Method: This study uses a qualitative case study method to analyze ESG integration in Indonesia's tax regulations, focusing on policies, carbon tax effectiveness, and emissions disclosure. The research is based on corporate legitimacy and institutional theories to explore the relationship between tax regulations and sustainable practices.Findings: The study's findings reveal significant growth in green investments in Indonesia, largely driven by supportive ESG-oriented tax policies. Despite this progress, challenges such as limited corporate awareness and data availability remain barriers to fully realizing the potential of these policies. The analysis also highlights the importance of these regulations in fostering sustainable business practices, particularly in industries like palm oil that are crucial for addressing climate change.Novelty: This research uniquely examines the impact of ESG-focused tax regulations on green investments and sustainable practices in Indonesia, using corporate legitimacy and institutional theories. It fills a literature gap by exploring how tax regulations drive ESG integration in the business sector of a developing country.Implications: The study has important implications for policymakers, businesses, and stakeholders in Indonesia and similar economies. It shows that ESG-focused tax policies positively impact green investments, suggesting that refining and implementing these policies could strengthen sustainable business practices and support environmental goals. The study also emphasizes the need for greater corporate awareness and better data collection to address challenges and ensure effective ESG integration in the corporate sector.

A Nonlinear Analysis of Carbon Pricing Mechanisms: Comparing the Economic Impacts of Carbon Tax and Emissions Trading Schemes in Developing Economies

This study evaluates the relative effectiveness of Carbon Tax and Emission Trading Schemes (ETS), for developing economies, in promoting economic growth as well as emission reductions. A systematic literature review (SLR) analyzing 36 studies is employed for this purpose. Findings reveal that Carbon Tax brings temporary economic deceleration but fuels long-term sustainability with clearer direct impacts. ETS also achieves the same objectives with greater flexibility thereby offsetting the negative impacts of Carbon Pricing via price volatility. Revenue recycling is a key tool to address economic disbenefits. This study sheds an urgent light on the imperatives for region-specific policy designs and forthcoming hybrid mechanisms as well as longitudinal socioeconomic effect investigation among underrepresented developing regions.