Tax Price Research Articles

The Dark Money Subsidy? Tax Policy and Donations to Section 501(c)(4) Organizations

AbstractThis article presents the first empirical examination of giving to §501(c)(4) organizations, which have recently become important players in U.S. politics. Unlike gifts to charity, donations to a 501(c)(4) are not legally deductible. Yet, gifts to c(4) organizations are highly elastic to the after-tax price of charitable giving. At the lower end of the observed tax price range, c(4) giving falls with tax price, consistent with the hypothesis that giving to c(3) and c(4) organizations are substitutes. Over the top quarter of the distribution of tax price, however, gifts to c(4) organizations are negatively correlated with the after-tax price of giving to charity. That is, donors appear to respond as though the deduction subsidized their gift to a c(4). Donor responses to benefits for which they are not eligible may reflect the low salience of legal limitations or deliberate overclaiming. These results imply subsidies for charity can crowd out or in donations to c(4) organizations, with potential implications for U.S. politics. I cannot observe whether donors claim tax deductions for ineligible gifts, so the net results for the Treasury are unclear.

Exploring Cognitive Factors for Transition Management in the Transport Sector: Focusing on Diesel Tax and Oil Price Subsidy System in Korea

Exploring Cognitive Factors for Transition Management in the Transport Sector: Focusing on Diesel Tax and Oil Price Subsidy System in Korea

End-of-life passenger vehicles recycling decision system in China based on dynamic material flow analysis and life cycle assessment

China’s automobile industry is developing rapidly, but the recycling rate of end-of-life vehicles has been low. In 2018, the recovery rate of end-of-life passenger vehicles was less than 18% of the scrapped amount. Dynamic material flow analysis can predict the amount of end-of-life passenger cars in China in the future, and analyze the flow of materials in recycling system. Life cycle assessment can be used to quantify greenhouse gas emissions. Therefore, this paper integrates these two methods into the model construction of recycling decision system. Meanwhile, sensitivity analysis of the important factors affecting the efficiency of the recovery system is carried out. Finally, the main recovery indexes of the system are predicted under three scenarios: low-speed, medium speed and high-speed development, which are set based on scrap volume, standard recovery rate, proportion of assembly into remanufacturing and carbon tax price. The research results show that in 2018, 656.9 kg/vehicle of iron, 150.2 kg/vehicle of aluminum and 7.9 kg/vehicle of copper are recovered from end-of-life passenger car in China, and the carbon emission during the recovery process is 651.1 kg of CO2eq/vehicle, with a total emission reduction of 3816.1 kgCO2eq/vehicle compared with the original production, and the economic benefit is about 5055.5 yuan/vehicle. The scenario prediction results show that by 2050, from the low-speed development scenario to the high-speed development scenario, the total amount of iron, aluminum and copper recovered rise from 3.96 million tons, 915 thousand tons and 46 thousand tons to 697 thousand tons, 1.61 million tons and 80 thousand tons respectively throughout the year. The carbon emission in the recovery process rise from 4.98 thousand tons to 9.32 million tons. Compared with the original production, the carbon emission reduction increases from 2.21 million tons to 38.3 million tons, the economic benefit increases from 58.9 billion yuan to 118.8 billion yuan, and the comprehensive benefit increases from 57 billion yuan to 111.6 billion yuan.

Estimated Land and Building Tax using Aerial Photography (Case Study: Tingkir District, Salatiga City)

Salatiga, a city that borders directly and is surrounded by Semarang Regency. It has an area of ​​56.78 km2, with four sub-districts including, Sidorejo Regency, Argomulyo Regency, Tingkir Regency, and Sidomukti Regency, which covers 23 villages. The city of Salatiga has a fairly high population density with a proportion of more than 3300 inhabitants / km2. In this study took place in the Central Tingkir and Tingkir Lor areas by taking several points that are considered as housing as a case study. This study aims to estimate the price of land and building tax on an object of land and building tax. The process of this research uses aerial photo processing, where aerial photographs will be processed using professional software Agisoft photoscan to become an orthophoto, digital surface models and digital terrain models to obtain building area and land area data, then digital surface models and digital terrain models are processed . with ArcGIS 10.6 software using a raster calculator to get the height of the object to be used as the height of the building. The data obtained will be used to perform land and building tax calculations. The results of this study estimate the estimated land and building tax prices of at least IDR 37,313.00 and a maximum value of IDR 3,809,763.00.

A joint analysis of environmental and economic performances of closed-loop supply chains under carbon tax regulation

Under carbon tax regulation, we jointly measure the environmental and economic performances of three closed-loop supply chains, where remanufacturing is implemented through the reverse channels of retailer collection, manufacture collection, and a third-party collection. The equilibrium results for each supply chain are derived and the impacts of emission-related factors are characterized. Through numerical study, we explore the impacts of the emission intensities of both new and remanufactured products on the entire emissions. Also, the government’s policy concerning environmental protection is discussed. The results show that the collection rate and the first-period product quantity are piecewise monotonous related to the tax price and emission intensities. Either the manufacturer collection or the retailer collection can be the most eco-efficient revers channel while the third-party collection is the least-preferred. The retailer collection can be both environmentally and economically better off to achieve a Pareto-improvement. Otherwise, when the manufacturer collection is the most eco-efficient reverse channel, it can be motivated by the government through subsidizing. Interestingly, the numerical studies show that reducing the emission intensity of remanufactured products can be eco-efficient, while lowering the emission intensity of new products may do harm to the environment. Besides, with one subsidy, two tax prices can be set by the government, among which the higher tax price leads to better environmental sustainability.

SVR-DEA model of carbon tax pricing for China's thermal power industry

To mitigate the adverse effects of global climate change, the carbon tax has been gradually recognized as an important economic means to reduce carbon emissions. This paper therefore aimed to investigate the carbon tax pricing for China's thermal power industry and proposed a provincial increasing block carbon tax (IBCT) policy. By designing a forecast-optimized framework with support vector regression (SVR) and data envelopment analysis (DEA), the pricings of IBCT and flat carbon tax (FCT) were calculated. Meanwhile, the effects of both them on emission reduction were compared. The results showed that: (1) China's overall electricity demand will continue to increase in 2020, with southern and northern provinces showing stronger increases than other provinces. (2) The marginal abatement cost of each region was calculated, thus gaining an optimal three-stage form of IBCT. (3) The comparison indicated that the emission reduction efficiency of the IBCT was 23.1% higher than the FCT under the premise of equal emission reduction. The study suggests that IBCT is a more efficient type of carbon tax policy compared to FCT. Implementing IBCT can be conducive to achieving the dual goals of reducing cost burden and carbon emission in China's thermal power industry.

Tax Prices and Charitable Giving: Projected Changes in Donations under the 2017 Tax Cuts and Jobs Act

We estimate the tax price elasticity of charitable giving using newly available data from the Panel Study of Income Dynamics spanning 2001–17. We find that households that always itemize are less sensitive to changes in the tax treatment of donations than households that switch itemizing status. We apply these results to the provisions of the Tax Cuts and Jobs Act of 2017, taking into account the marginal propensity to donate from the increase in disposable income expected for most households, and we predict significant reductions in charitable giving.

Introduction

Introduction

Реален ли сценарий повышения доступности бензина в России

<span>В последние годы на российском рынке моторных топлив сформировалась система противоречивых требований, что вылилось в резкий рост цен в 2018 г. В результате был введен инструмент обратных акцизов и предельной оптовой цены, что изменило систему ценообразования. Нефтяные компании продолжают использовать цену нетбэк в качестве ориентира, но вычитают из нее обратный акциз и некоторую скидку для внутреннего рынка, определяя таким образом оптовую цену. За 2015–2019 гг. доступность бензина в России снизилась на 12% и упала ниже уровня 2009 г. В базовом сценарии, согласованным с актуальным прогнозом Минэкономразвития России, доступность бензина повысится за счет роста реальных доходов населения, но останется ниже уровня 2015 г. При этом возможна реализация сценария повышения доступности бензина через замедление роста цен на моторные топлива. Это позволит перераспределить часть доходов государственного бюджета и нефтяного сектора (которые, вероятно, подверглись бы резервированию) в пользу населения и неэнергетических отраслей экономики, то есть именно туда, где необходимо качественное улучшение положения дел.</span>

Fiscal illusion and progressive taxation with retrospective voting

This article addresses the tax progressivity decision of a rent-maximising government under the circumstances that voters’ perceptions of the tax price of public goods are biased by cognitive anomalies (i.e. fiscal illusion) and that the electorate opts for re-appointing or for dismissing the incumbent according to a retrospective voting logic. Given electoral and constitutional constraints, we show that the design of the tax system can be sensibly affected by fiscal illusion within the population of voters. Specifically, we find that (i) the tax system is more (less) progressive when taxes and public expenditures are perceived less (more), and (ii) an increase in the median voter’s income may positively or negatively affect tax progressivity depending on the nature (pessimistic or optimistic) of fiscal illusion. The impact of fiscal illusion on tax progressivity has been validated by econometric analysis.

Land Use Incentives for Real Estate Developers in Social Rental Housing Projects (Case study: Degla Gardens Project-October Gardens-Six October City)

Social rental housing projects have emerged since 2016 to cover the housing demand of low-income groups, but these projects need high cost that beyond the financial capacity of some governments. Therefore, the World Bank reports in 2014 and 2018 pointed to the importance of including the private sector in low-income housing projects as a real estate developer instead of the state. The contribution of private sector and his successful experience in this field help in reducing the government spending towards these projects and achieving high quality in their implementation. For these reasons, many countries at international level involved the private sector in construction of social housing units in exchange for a set of incentives, which vary widely from one country to another. These incentives are classified into two main groups, the first one is financial and administrative incentives such as providing free land or selling it at low price, besides taxes and financing facilities as applied in Brazil, China, Singapore and Thailand. The second group is new incentives which called Land use incentives such as land use kind, percentage of land exploitation, proposed density and land use regulation in the housing project as applied in the United States, Japan and France because the previous financing incentives are not enough to achieve an appropriate profit for investors.At the local level, the private sector participated in many low-income housing projects such as Youth Housing, National Housing and social housing projects during the period from 1996 until now. In which the Egyptian government provided him some incentives like low price land, payment facilities, tax cuts and allocation part of land for his investment projects in exchange for building number of housing units with an area of (63 m2) for low-income groups. On the other hand, real estate companies retreated from participation in these projects because the incentives are unsatisfactory to them, which made the state played again the role of real estate developer to fill the gap in housing demand by using insufficient government budget.As a result of that, the Egyptian government is trying nowadays to re-engage the private sector again in future social housing projects by studying all submitted proposals from private sector in 2016, the World Bank in 2018 and the views of some institutions such as ministry of investment, ministry of housing and the Social Housing Fund in 2019 around the new incentives, especially after the state decided to withdraw from real estate development and leave it to the private sector by the year 2020. Hence, this paper tries to introduce the new incentives for private sector to participate again in social housing projects. The formulation of these incentives comes from revision the international experiences and reports as well as evaluating the applying of old incentives in one case study of participation housing projects (Degla Gardens project to find an integrated vision for suitable incentives in Egyptian reality that achieve the goals of all development parties ( the government-private sector-population).

Economic Evaluation of the Production of Titanium Dioxide (TiO2) Nanoparticles using the Simple Aqueous Peroxo Route Method

This study aims to analyze the economic evaluation on the production of TiO2 nanoparticles using the simple aqueous peroxo route method. Economic evaluation is carried out using several economic parameters, such as Payback Period (PBP), Break Even Point (BEP), and Cumulative Net Present Value (CNPV). The economic evaluation method is carried out by calculating several factors to see the potential of TiO2 nanoparticle production, such as an increase in tax prices, sales prices, and the effect of raw material prices. Based on tax evaluation, the greatest income achievement when taxed is 10%. Based on the sales evaluation, the minimum sales price so that the company does not lose is at the 90% point. Based on variations in raw material prices, an increase in raw material prices by up to 50% will not cause a loss. PBP analysis shows the investment in a short period of time, namely in the fourth year and until the 20th year the company's profits continue to increase. In conclusion, the results of the economic evaluation show good prospects. The impact of this research is the evaluation of large-scale economic data on TiO2 nanoparticles, production prospects with estimated factors that may occur under ideal conditions.

Adóköteles jövedelmek rugalmassága –egy identifikációs kísérlet a családi adókedvezmény 2011-es bevezetése alapján

The elasticity of taxable income has primary importance both from a theoretical and from a policy perspective. In this paper we estimate how the declared taxable income of taxpayers eligible for the family allowance changed following the introduction of the allowance in 2011. Our results show that the taxable income was more responsive to tax changes compared to previous Hungarian studies: the uncompensated elasticity falls robustly in the 0.15–0.25 range. Decomposing it to substitution and income effect is rather uncertain, which in our view is due to the strong correlation between changes in the marginal and average tax prices.

Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States

This research paper summarizes the ideas of maximization of corporate welfare and basic firm theory, transfer prices among corporate subsidiaries have been found to complicate performance evaluations of subsidiaries and the parent company. The research problem addressed the lack of understanding of transfer price policy and its application to impact firm profits within three specific measures: investor return, earnings per share, and effective tax rate. The main purpose of this study was to ascertain an empirical relationship between transfer pricing policies and these financial performance measures within a study of two multinational firms. The research paper presents an empirical result indicated statistically significant differences between the measures for each firm and allowed further comparative analysis based on other collected data. Overall, results indicated each measure of performance affected transfer pricing tax liabilities, and transfer pricing may be a vehicle to improve company profitability. The results of this study may contribute to positive social change by bringing a focus to efficiency in transfer pricing, which could yield positive impacts on the economy through the reduction of international transaction costs stemming from the minimization of tariffs, income tax liabilities at home and abroad, foreign exchange risk and conflicts with foreign governments’ policies. Positive social change may also be affected by providing investors a new perspective on corporate financial data based on transfer price policies and corporate performance. Keywords: Finance, Transfer Pricing, Macroeconomy, Corporate Performance, Effective Tax Rate, Earnings Per Share, Investor Return.

Globalization versus redistribution? Egalitarian policies in a competitive world economy

A reduction of impediments to international flows of goods, capital and professional labor is thought to raise the economic costs of programs by the nation state (and labor unions) to redistribute income to the poor and to provide economic security. But some of the more politically and economically successful examples of such policies—for example, Nordic social democracy and East Asian land reform—have occurred in small open economies which would, on the above account, provide a prohibitive environment for egalitarian interventions. I present a model of globalization and redistribution to answer the following question: in a liberalized world economy, what programs of egalitarian redistribution and social insurance are implementable by democratic nation states acting independently? While in the absence of international coordination, globalization indeed makes it difficult for nation states to affect the relative (after tax) prices of mobile goods and factors of production and for this and other reasons may limit the effectiveness of some conventional strategies of redistribution, a large class of state and trade union interventions leading to substantial improvements in the wages, employment prospects, and economic security of workers is not ruled out by globalization. Included are redistributions of assets which provide efficient solutions to incentive problems arising in principal agent relationships such as wage employment, farm and residential tenancy.

Financing Local Police Spending in England and Wales: Fiscal Federalism in Practice

AbstractSince 1995, police forces in England and Wales have been able to raise revenues locally to supplement grants from central government. We analyse the variation across police force areas in locally raised police revenues over the 2000s, and we find that three‐quarters of the temporal and spatial variation in local revenues per head can be explained by differences in incomes, prices and local preferences. A particularly robust parameter is the effective local community tax price associated with raising revenue. We discuss the police funding model in the wider context of fiscal federalism, and we point to alternative funding structures that could be adopted.

Commentary on the 'OECD Secretariat Proposal for a 'Unified Approach' Under Pillar One, 9 October 2019-12 November 2019'

The Pillar One proposals in the Unified Approach are the OECD’s most recent attempt to find international consensus on BEPS Action Item 1, “Taxing the Digital Economy.” Our assessment is that the proposals suffer from several defects, the most important of which is their apparent abandonment of the arm’s-length principle (ALP). The overarching goal behind the 15 BEPS Action Items issued in 2013 was to strengthen the international tax system by removing egregious tax loopholes and ensuring that profits were taxed where economic activities occurred and value was created. The Pillar One proposals, however, are not “BEPS 2”; they do not share the same agenda, do not build on international tax and transfer pricing principles, and will weaken not strengthen the current system. We believe that the current tax and transfer pricing rules, inclusive of BEPS 1 changes, can encompass the digital economy. We offer six policy recommendations designed to move the global economy onto the BEPS 2 path, a path appropriate for 21st century digital multinationals that will benefit both developed and developing countries.

The Effect of Tax Price on Donations: Evidence from Canada

Estimating the responsiveness of charitable donations to changes in tax incentives is more than estimating a single number. Giving to charity is unlike normal consumption – it involves supporting the delivery of privately-provided public goods. Age and income may influence how tax incentives to give affect both the decision to give as well as how much to give. Using a large administrative dataset from Canada to estimate the tax price elasticity of donations, we estimate that the tax price elasticity of charitable donations is -1 when it is restricted to be the same for all individuals. Across the income distribution, however, we observe an inverse U-shaped distribution in the elasticity that ranges from -1.4 to -0.18. We also find differences in the elasticity across age groupings, and that for the population the elasticity is driven more through the intensive than extensive margin.

Optimizing Urban Distribution Routes for Perishable Foods Considering Carbon Emission Reduction

The increasing demand for urban distribution increases the number of transportation vehicles which intensifies the congestion of urban traffic and leads to a lot of carbon emissions. This paper focuses on carbon emission reduction in urban distribution, taking perishable foods as the object. It carries out optimization analysis of urban distribution routes to explore the impact of low carbon policy on urban distribution routes planning. On the basis of analysis of the cost components and corresponding constraints of urban distribution, two optimization models of urban distribution routes with and without carbon emissions cost are constructed. Fuel quantity related to cost and carbon emissions in the model is calculated based on traffic speed, vehicle fuel quantity and passable time period of distribution. Then an improved algorithm which combines genetic algorithm and tabu search algorithm is designed to solve models. Moreover, an analysis of the influence of carbon tax price is also carried out. It is concluded that in the process of urban distribution based on the actual network information, path optimization considering the low carbon factor can effectively reduce the distribution process of CO2, and reduce the total cost of the enterprise and society, thus achieving greater social benefits at a lower cost. In addition, the government can encourage low-carbon distribution by rationally adjusting the price of carbon tax to achieve a higher social benefit.

Risk management optimization framework for the optimal deployment of carbon capture and storage system under uncertainty

In order to meet the CO2 reduction target and realize cleaner production, large emission sources have two options: investing in carbon capture and storage (CCS) system and/or paying surcharge for carbon tax. CCS system requires industry to make huge investment in infrastructure and the cost of making improper decisions on CCS is substantial. Many factors can impact the successful deployment of commercial-scale CCS, including significant uncertainty regarding carbon policy, technology and engineering performance. In this study, a two-stage stochastic mixed-integer linear programming (MILP) model is formulated to explore the relationship between these two reduction options by minimizing expected total cost (ETC) for CO2 reduction, considering carbon tax uncertainty. Furthermore, to assess the risk imposed by the uncertainty, three financial risk metrics are introduced for risk management and each metric is formulated as secondary objective to ETC in a multi-objective optimization model with two objectives. The trade-offs between the economic and risk objectives are obtained via the ε-constraint method. At last, a case of power plants in Northeast China is studied. Results show that the risk-neutral solution may confront high risk or even be infeasible in some extreme scenarios, and the carbon tax price of no less than $ 50/t is recommended for policy-makers. In risk-management cases, to control the risk, variability index metric is reduced from $ 40 × 108 to $ 0, probability financial metric is reduced from 0.20 to 0.12 and downside risk metric is reduced from $ 27.09 × 108 to $ 13.38 × 108 at the expense of increasing ETC.