Interaction Of Tax Research Articles

The optimal subsidy on electric vehicles in German metropolitan areas: A spatial general equilibrium analysis

E-mobility and diffusion of electric vehicles have become a major policy issue in many countries. For example, the German federal government pursues the strategy of achieving one million electric vehicles by 2020. In this paper we examine whether it is optimal to subsidize the use of electric vehicles by granting electric power subsidies and how large the corresponding optimal rate is. We, first, analytically derive the optimal power tax in a spatial model of a city with two zones where commuting, carbon emissions, endogenous labor supply, fuel and power taxes are considered. It is shown that in a spatial urban environment, the optimal tax rate depends in particular on transport related externalities, tax interaction effects and redistribution effects working via the urban land market. Second, we extend the model to a full spatial general equilibrium model and employ simulations to calculate sign and size of the optimal tax/subsidy rate. This model is calibrated to a typical German metropolitan area. The results show that electric vehicles should not be subsidized but taxed. The results are robust with respect to changes in the willingness to adopt electric vehicles, the costs of driving electric vehicles, and even if emissions of electric vehicles are zero.

HTLV-1 Tax oncoprotein stimulates ROS production and apoptosis in T cells by interacting with USP10

AbstractHuman T-cell leukemia virus type 1 (HTLV-1) is the etiological agent of adult T-cell leukemia (ATL), and the viral oncoprotein Tax plays key roles in the immortalization of human T cells, lifelong persistent infection, and leukemogenesis. We herein identify the ubiquitin-specific protease 10 (USP10) as a Tax-interactor in HTLV-1–infected T cells. USP10 is an antistress factor against various environmental stresses, including viral infections and oxidative stress. On exposure to arsenic, an oxidative stress inducer, USP10 is recruited into stress granules (SGs), and USP10-containing SGs reduce reactive oxygen species (ROS) production and inhibit ROS-dependent apoptosis. We found that interaction of Tax with USP10 inhibits arsenic-induced SG formation, stimulates ROS production, and augments ROS-dependent apoptosis in HTLV-1–infected T cells. These findings suggest that USP10 is a host factor that inhibits stress-induced ROS production and apoptosis in HTLV-1–infected T cells; however, its activities are attenuated by Tax. A clinical study showed that combination therapy containing arsenic is effective against some forms of ATL. Therefore, these findings may be relevant to chemotherapy against ATL.

Group I p21-activated kinases facilitate Tax-mediated transcriptional activation of the human T-cell leukemia virus type 1 long terminal repeats

BackgroundHuman T-cell leukemia virus type 1 (HTLV-1) is the causative agent of adult T-cell leukemia and tropical spastic paraparesis. HTLV-1 encodes transactivator protein Tax that interacts with various cellular factors to modulate transcription and other biological functions. Additional cellular mediators of Tax-mediated transcriptional activation of HTLV-1 long terminal repeats (LTR) remain to be identified and characterized.ResultsIn this study, we investigated the regulatory role of group I p21-activated kinases (Paks) in Tax-induced LTR activation. Both wild-type and kinase-dead mutants of Pak3 were capable of potentiating the activity of Tax to activate LTR transcription. The effect of Paks on the LTR was attributed to the N-terminal regulatory domain and required the action of CREB, CREB-regulating transcriptional coactivators (CRTCs) and p300/CREB-binding protein. Paks physically associated with Tax and CRTCs. Paks were recruited to the LTR in the presence of Tax. siRNAs against either Pak1 or Pak3 prevented the interaction of Tax with CRTC1 and the recruitment of Tax to the LTR. These siRNAs also inhibited LTR-dependent transcription in HTLV-1-transformed MT4 cells and in cells transfected with an infectious clone of HTLV-1.ConclusionGroup I Paks augment Tax-mediated transcriptional activation of HTLV-1 LTR in a kinase-independent manner.

Association of area socioeconomic status with lung function in children

ObjectiveThe study investigates the association between area-level socioeconomic status (SES) and children's lung function. MethodsParticipants were 3994 seventh grade students from the Taiwan Children Health Study living in 14 communities in Taiwan and were recruited in 2007. Area-level SES predictors were population size, occupation type, income and education level. Hierarchical linear models (HLM) were used to examine the effects of area-level SES on lung function, after accounting for area air pollution and individual SES (parental education and family income). ResultsAreas with high income were independently associated with lower child lung function. The coefficients for log transformation of area tax per person in HLM were −47.8 (95% confidence interval (CI): −80.9, −14.8) in FEV1, −43.8 (95% CI: −75.2, −12.5) in FVC, −93.4 (95% CI: −179.3, −7.5) in FEF25-75 and −203.2 (95% CI: −349.1, −57.2) in PEF. All SES predictors influenced in the same direction and affected males more. The interaction of area tax per person with parental educational level was significant on PEF, suggesting significant association of greater parental education with lower lung function in children. ConclusionHigh area SES was inversely associated with lung function in Taiwanese children.

Climate policy and fiscal constraints: Do tax interactions outweigh carbon leakage?

Climate policymaking faces twin challenges of carbon leakage and public sector revenue requirements. A large literature advocates the use of CO2 pricing and recycling the revenues to lower distorting taxes as a way to minimize costs. In this paper, we explore the implications of labor tax interactions for cost-effectiveness of border adjustments and other measures to cope with leakage. We find that, for plausible values of labor supply elasticities, the cost savings from revenue recycling are significant—from 15 to 25%. The cost savings from anti-leakage measures are generally smaller, but also significant, particularly for small coalitions or more binding reduction targets. Tax interactions further enhance the cost savings from border adjustments, but make other measures like rebates or exemptions less attractive.

Modeling the impact of a carbon tax: A trial analysis for Washington State

In recent years, energy policy makers have proposed a carbon tax as an economy-wide policy tool to curb greenhouse gas (GHG) emissions. The quantification of its impact on GHG emissions has relied on an energy-economy model, whose complexity often makes it difficult to comprehend how it simulates the interaction of a carbon tax and energy demand. This study therefore aims at developing an alternative model called the Carbon Tax Analysis Model (C-TAM). The elasticity-based approach used in C-TAM is less sophisticated than an equilibrium-based approach used in an energy-economy model, but C-TAM is designed to maximize its predictive capabilities by using a wide range of elasticities for each sector and fuel use, accounting for likely changes in fuel mix for electricity generation, and addressing the model's sensitivity to elasticity estimates with Monte Carlo simulation. The trial analysis in this study evaluates a potential carbon tax in Washington State, suggesting a carbon tax at US$30 per metric ton of CO2 (tCO2) lowers GHG emissions by 8.4% from the business-as-usual (BAU) scenario in 2035. The study concludes that C-TAM can provide meaningful policy implications by forecasting detailed impact on revenues and energy demand for each sector and fuel use.

Strategic fiscal interaction across borders: Evidence from French and German local governments along the Rhine Valley

This article contributes to the literature on local tax interactions. Its novelty lies in its focus on the interactions of local governments across national borders. We use panel data for the French and German municipalities in the Rhine Valley for the period 2000–2007. The local governments of each country influence firms’ overall tax burdens, but the tax instruments available at the local level differ. We estimate panel models that distinguish between the effects of competing municipalities belonging to the same country and belonging to the other country. Our empirical model shows that local jurisdictions along borders choose their business tax rates based on those of their domestic neighbors and that foreign fiscal policy does not have an impact on the local domestic tax setting behavior in these contexts.

Interaction of HTLV-1 Tax with minichromosome maintenance proteins accelerates the replication timing program

AbstractThe Tax oncoprotein encoded by the human T-cell leukemia virus type 1 plays a pivotal role in viral persistence and pathogenesis. Human T-cell leukemia virus type 1–infected cells proliferate faster than normal lymphocytes, expand through mitotic division, and accumulate genomic lesions. Here, we show that Tax associates with the minichromosome maintenance MCM2-7 helicase complex and localizes to origins of replication. Tax modulates the spatiotemporal program of origin activation and fires supplementary origins at the onset of S phase. Thereby, Tax increases the DNA replication rate, accelerates S phase progression, but also generates a replicative stress characterized by the presence of genomic lesions. Mechanistically, Tax favors p300 recruitment and histone hyperacetylation at late replication domains, advancing their replication timing in early S phase.

Tax Interaction Among Walloon Municipalities: Is there Room for Yardstick Competition, Intellectual Trend and Partisan Monopoly Effect?

Three sources of strategic tax interactions among local jurisdictions are usually considered in the literature: public expenditure spill-over, tax competition and yardstick competition. However, another source has now been suggested: the intellectual trend. According to that hypothesis, politicians of the same party tend to behave similarly: incumbents of the same party mimic each other’s policies. Moreover partisan politics may also act through a monopoly power effect linked to several terms of power for the same party, consecutively: a political party is more likely to have implemented tax rates corresponding to its ideology if it has ruled the municipality several legislatures in a row.The paper proposes an empirical analysis of tax interactions among Walloon municipalities (the Southern part of Belgium) in view of discriminating among the sources of interaction. Yardstick hypothesis, intellectual trend hypothesis and potential partisan monopoly power effect are tested. Spatial econometrics tools are used along a panel of local tax rates data from 1983 to 2008 and political data. Results confirm the existence of yardstick competition among Walloon municipalities but not that of behaviors in line with the intellectual trend hypothesis. Moreover evidence is found of a partisan monopoly power effect: several successive legislatures with a sole left-wing party in power increase the tax rates. Finally the presence of an electoral cycle is also clearly documented.

Climate Policy and Fiscal Constraints: Do Tax Interactions Outweigh Carbon Leakage?

Climate policymaking faces twin challenges of carbon leakage and public sector revenue requirements. A large literature advocates the use of carbon dioxide (CO2) pricing and recycling the revenues to lower distorting taxes as a way to minimize costs. In this paper, we explore the implications of labor tax interactions for the cost-effectiveness of border adjustments and other measures to cope with leakage. We find that, for plausible values of labor supply elasticities, the cost savings from revenue recycling are significant — from 15 to 25 percent. The cost savings from anti-leakage measures are generally smaller, but also significant, particularly for small coalitions or more binding reduction targets. Tax interactions further enhance the cost savings from border adjustments, but make other measures like rebates or exemptions less attractive.

An Evaluation of the Revenue Side as a Source of Fiscal Consolidation in High Debt Economies

Unsustainable levels of debt in some European economies are causing considerable strain in the Euro area. Successful debt consolidation in high debt economies is one of the most important important objective for the European policy makers. I use a dynamic general equilibrium closed economy model to compute the dynamic Laffer Curves for Portugal, Ireland, Greece and Spain for different class of taxes. The general equilibrium effects of the interaction of labor tax, consumption tax and capital tax is demonstrated. Location of each economy on its Laffer curve suggests that there exists a scope for considerable revenue generation by raising consumption and labor tax rates but no such possibilities exist for capital tax rate. Thus revenue generation with certain tax rates as instruments, may hold a key to successful and sustained debt reduction.

HTLV Tax: A Fascinating Multifunctional Co-Regulator of Viral and Cellular Pathways

Human T-cell lymphotropic virus type 1 (HTLV-1) has been identified as the causative agent of adult T-cell leukemia (ATL) and HTLV-1-associated myelopathy/tropical spastic paraparesis (HAM/TSP). The virus infects between 15 and 20 million people worldwide of which approximately 2–5% develop ATL. The past 35 years of research have yielded significant insight into the pathogenesis of HTLV-1, including the molecular characterization of Tax, the viral transactivator, and oncoprotein. In spite of these efforts, the mechanisms of oncogenesis of this pleiotropic protein remain to be fully elucidated. In this review, we illustrate the multiple oncogenic roles of Tax by summarizing a recent body of literature that refines our understanding of cellular transformation. A focused range of topics are discussed in this review including Tax-mediated regulation of the viral promoter and other cellular pathways, particularly the connection of the NF-κB pathway to both post-translational modifications (PTMs) of Tax and subcellular localization. Specifically, recent research on polyubiquitination of Tax as it relates to the activation of the IkappaB kinase (IKK) complex is highlighted. Regulation of the cell cycle and DNA damage responses due to Tax are also discussed, including Tax interaction with minichromosome maintenance proteins and the role of Tax in chromatin remodeling. The recent identification of HTLV-3 has amplified the importance of the characterization of emerging viral pathogens. The challenge of the molecular determination of pathogenicity and malignant disease of this virus lies in the comparison of the viral transactivators of HTLV-1, -2, and -3 in terms of transformation and immortalization. Consequently, differences between the three proteins are currently being studied to determine what factors are required for the differences in tumorogenesis.

Interaction of HTLV-1 Tax with minichromosome maintenance proteins accelerates the replication timing program

The Tax oncoprotein encoded by the Human T-cell leukemia virus type 1 (HTLV-1) plays a pivotal role in viral persistence and pathogenesis. HTLV-1 infected cells proliferate faster than normal lymphocytes, expand through mitotic division and accumulate genomic lesions. Here, we show that Tax associates with the minichromosome maintenance MCM2-7 helicase complex and localizes to origins of replication. Tax modulates the spatiotemporal program of origin activation and fires supplementary origins at the onset of S phase. Thereby, Tax increases the DNA replication rate, accelerates S phase progression but also generates a replicative stress characterized by the presence of genomic lesions. Mechanistically, Tax favors p300 recruitment and histone hyperacetylation at late replication domains advancing their replication timing in early S phase.

Expression and purification of the HTLV-1 transforming protein Tax

Human T cell lymphotropic virus, type 1 (HTLV-1), is the causative agent of adult T cell leukemia (ATL), a debilitating disease with a poor prognosis and no cure. HTLV-1 is a retrovirus which contains a 9 kb ssRNA genome, encoding the classic retroviral genes gag, pol, and env. HTLV-1 also encodes several regulatory genes, including tax. Tax is a 353 amino-acid, 40 kiloDalton (kDa) protein, located predominantly in the nucleus although a small percentage is isolated in the cytoplasm. Tax functions to regulate viral gene expression by interacting with the host transcription factor family, CREB/ATF. The Tax/CREB complex is formed on the 5’ LTR CRE site and activates viral gene transcription. In ATL cells (CD4+, CD8-), Tax also associates with two host transcription factors, NF-κB and SRF (serum response factor), resulting in the over-expression of host genes containing the NF-κB responsive element and the SRE (serum response element). The host genes, such as IL-2 and c-fos, are activated constitutively in the presence of Tax and result in cell proliferation of HTLV-1+ T cells, potentially leading to leukemia in the HTLV-1 patient. We believe that Tax activation of the SRF pathway serves as the initial transformation event of infected T cells. Thus, we are interested in the biochemical properties of Tax interactions with SRF, SRF/DNA, TCF (ternary complex factor, a binding partner with SRF), SRF/TCF, and SRF/TCF/DNA. Prior to conducting biochemical experiments, however, we need to express and purify Tax which has been difficult to accomplish in the HTLV-1 field and has impeded any progress toward studying the biophysical properties, including structure determination, of Tax. We present data showing our initial protein purification techniques that result in the isolation of a 99% pure, untagged, full-length Tax as well as the expression and purification of full-length, untagged human SRF.

Regional factors interact with educational and income tax levels to influence food intake in France

The goal of the present study was to assess whether geographic factors affect the relationship between socioeconomic indicators and adherence to the French National Nutritional Health Programme (Programme National Nutrition Santé (PNNS)) guidelines. The MONA LISA-NUT study (2005-2007) is a cross-sectional survey of a representative sample from northern, northeastern and southwestern France. Educational level and household income tax were recorded by trained interviewers. Food intake was assessed with a 3-day food diary in 3188 subjects aged from 35-64 years. Adherence to the PNNS guidelines was assessed with a validated score (the French score of indicators of the PNNS objective (FSIPO)). Multivariate analyses were adjusted for gender, age, marital status, body mass index, energy intake and medically prescribed diets. The FSIPO score was higher in southwestern France than in the two other regions (P<0.0001). The FSIPO score was correlated with the educational level in northern and northeastern France (P<0.0001) but not in southwestern France (region-education interaction: P<0.001). This interaction was accounted for by fruit and vegetable (P<0.0001), calcium (P=0.03), saturated fatty acid (P<0.0001), and fibre (P=0.0001) components of the FSIPO score. In contrast, the income tax level and the FSIPO score were positively correlated (P<0.0001) to a similar extent in all three regions (region × income tax interaction: P=0.09). The relationship between educational level and adherence to the national nutritional health guidelines differs from one region of France to another, suggesting that nutrition education programmes should perhaps be adapted on a regional basis. In contrast, guideline adherence is correlated with income tax level independently of geographical factors, suggesting that financial constraints on food choices are uniform across France.

Is there a double-dividend from anti-sprawl policies?

This paper examines the welfare effects of anti-sprawl policies, such as development tax, in a simple spatial explicit urban model with two market failures – urban decline at the city core and underprovision of open space amenities at the urban fringe – and pre-existing distortionary property tax, used to fund public services and improvements to mitigate urban decline. Consistent with prior double-dividend literature, there is a tax interaction effect that occurs between the development tax and the pre-existing property tax. However, there are two fundamental differences between the tax interaction effect identified here and that of prior literature. Ours one has two components: First, there is a cost-side tax interaction effect that is ‘spatially’ concentrated at the urban fringe, as only agents at the urban fringe alter their behavior in response to the development tax. Second, there is also a benefit-side tax interaction effect, as increases in open space at the urban fringe are capitalized into housing prices throughout the city. In contrast to prior literature, we find that the empirical importance of the combined tax interaction effect is of substantially less importance and, as a consequence, the likelihood of a ‘double-dividend’ is higher than in prior studies. Further, we show that the development tax should be part of the local tax system, even in the absence of open space benefits.

SMYD3 interacts with HTLV‐1 Tax and regulates subcellular localization of Tax

HTLV-1 Tax deregulates signal transduction pathways, transcription of genes, and cell cycle regulation of host cells, which is mainly mediated by its protein-protein interactions with host cellular factors. We previously reported an interaction of Tax with a histone methyltransferase (HMTase), SUV39H1. As the interaction was mediated by the SUV39H1 SET domain that is shared among HMTases, we examined the possibility of Tax interaction with another HMTase, SMYD3, which methylates histone H3 lysine 4 and activates transcription of genes, and studied the functional effects. Expression of endogenous SMYD3 in T cell lines and primary T cells was confirmed by immunoblotting analysis. Co-immuno-precipitaion assays and in vitro pull-down assay indicated interaction between Tax and SMYD3. The interaction was largely dependent on the C-terminal 180 amino acids of SMYD3, whereas the interacting domain of Tax was not clearly defined, although the N-terminal 108 amino acids were dispensable for the interaction. In the cotransfected cells, colocalization of Tax and SMYD3 was indicated in the cytoplasm or nuclei. Studies using mutants of Tax and SMYD3 suggested that SMYD3 dominates the subcellular localization of Tax. Reporter gene assays showed that nuclear factor-κB activation promoted by cytoplasmic Tax was enhanced by the presence of SMYD3, and attenuated by shRNA-mediated knockdown of SMYD3, suggesting an increased level of Tax localization in the cytoplasm by SMYD3. Our study revealed for the first time Tax-SMYD3 direct interaction, as well as apparent tethering of Tax by SMYD3, influencing the subcellular localization of Tax. Results suggested that SMYD3-mediated nucleocytoplasmic shuttling of Tax provides one base for the pleiotropic effects of Tax, which are mediated by the interaction of cellular proteins localized in the cytoplasm or nucleus.

Human T-Lymphotropic Virus Type 1 Tax Protein Complexes with P-TEFb and Competes for Brd4 and 7SK snRNP/HEXIM1 Binding

Positive transcription elongation factor b (P-TEFb) plays an important role in stimulating RNA polymerase II elongation for viral and cellular gene expression. P-TEFb is found in cells in either an active, low-molecular-weight (LMW) form or an inactive, high-molecular-weight (HMW) form. We report here that human T-lymphotropic virus type 1 (HTLV-1) Tax interacts with the cyclin T1 subunit of P-TEFb, forming a distinct Tax/P-TEFb LMW complex. We demonstrate that Tax can play a role in regulating the amount of HMW complex present in the cell by decreasing the binding of 7SK snRNP/HEXIM1 to P-TEFb. This is seen both in vitro using purified Tax protein and in vivo in cells transduced with Tax expression constructs. Further, we find that a peptide of cyclin T1 spanning the Tax binding domain inhibits the ability of Tax to disrupt HMW P-TEFb complexes. These results suggest that the direct interaction of Tax with cyclin T1 can dissociate P-TEFb from the P-TEFb/7SK snRNP/HEXIM1 complex for activation of the viral long terminal repeat (LTR). We also show that Tax competes with Brd4 for P-TEFb binding. Chromatin immunoprecipitation (ChIP) assays demonstrated that Brd4 and P-TEFb are associated with the basal HTLV-1 LTR, while Tax and P-TEFb are associated with the activated template. Furthermore, the knockdown of Brd4 by small interfering RNA (siRNA) activates the HTLV-1 LTR promoter, which results in an increase in viral expression and production. Our studies have identified Tax as a regulator of P-TEFb that is capable of affecting the balance between its association with the large inactive complex and the small active complex.

Tax interactions among Belgian municipalities: Do interregional differences matter?

This paper tests the existence of strategic interactions among municipalities, based on a panel of Belgian local tax rates from 1985 to 2004. A special emphasis is put on the role of the interregional differences in Belgium. Our results partly confirm previous findings for Belgium suggesting that municipalities interact over the local surcharge on the (labor) income tax rate but not on the local surcharge on the property tax. Using spatial econometrics tools and an original methodology for specifying weight matrices, we find that municipalities are sensitive to the local income tax rates set by only their closest neighbors. We cannot reject the hypothesis that interregional differences matter for municipalities belonging to the Brussels region: for the local income tax rate, the intensity of interactions is shown to be higher between municipalities belonging to the Brussels region than between municipalities belonging to different regions.

Federal-State Tax Interactions in the United States and Canada

The potential for vertical tax competition is strongest when different levels of government share the same base. Because there is greater sharing of common tax bases in Canada than in the United States, we expect vertical tax competition to be weaker in the United States than in Canada. Econometric analysis of US data supports this hypothesis. Taking account of the deductibility-related endogeneity of federal tax burdens by state, federal income tax burdens have no effect on average state income tax burdens. Introducing distributional considerations into the vertical tax competition model, we do find a significant displacement effect for higher income taxpayers, with higher federal burdens associated with lower state income tax burdens in the highest income quintile. For low-income taxpayers, federal and state tax burdens are complementary.