Level Of Tax Rates Research Articles

Research on the path of green technology innovation driven by the Environmental Protection Tax Law: Based on data of heavy polluting enterprises.

Environmental Protection Tax Law (EPTL) is a compulsory environmental regulation measure adopted by China to deal with environmental problems. However, with the advancement of implementation, the EPTL produces a dissimilation effect and damages the realization of the Porter hypothesis effect. The study examines the dissimilation effect of green technology innovation regulated by the EPTL using sample data from heavy pollution firms in China. According to the empirical test results: (1) the coordination between levies and administrations, differential tax rate setting, tax information sharing, definition of the scope of levy and administration, tax declaration counseling, and tax rate level verification produce the dissimilation effect; (2) the Porter hypothesis effect of the EPTL is the most significant in medium-sized enterprises and foreign-funded enterprises. By constructing the research model group of dissimilation effect, this study analyzes the application of environmental regulation in China's social and economic background, thus providing a reference for developing of the green economy.

Transfers, taxes and tax credits for those on low incomes: beyond Mirrlees

Abstract For any given amount of tax revenue obtained from a specific tax, the standard model of economists focuses on the financial incentives in the tax schedule and requires that inevitable and unavoidable trade-offs are made between individuals who receive different levels of tax rates. Increasing the work incentives for one group or in one part of the earnings distribution necessarily requires that those incentives are decreased for some other group or in some other range. But a more attractive set of policy options consists of those that combine these considerations with work programmes drawn from a mix of employment and human capital strategies for different segments of the recipient population. Worth exploring are greater connections between individuals on benefit and the educational sector, sectoral employment and training strategies—including some with conditionality, even if only in a mild form—and other strategies to increase long-run earnings capabilities.

Impact of urban land use tax on carbon emission efficiency of urban construction land--Analysis based on panel data of 30 provinces in China.

Reducing urban carbon emissions is an important path for ecological civilization construction, which can be achieved through the adjustment of urban land use tax. Using provincial Panel data from 2011 to 2021, based on the analysis of urban carbon emission efficiency values using a non radial SBM model, the Tobit random effects panel model is used to explore the institutional impact of urban land use tax. The study found that urban land use tax has a significant positive promoting effect on carbon emission efficiency and shows certain regional differences. The eastern region is higher in overall efficiency and technical efficiency than the central and western regions, but the central region has the highest overall scale efficiency. At the same time, factors such as population urbanization, industrial structure, and energy-saving technology level will also have a certain impact on this effect. Based on the institutional effect of improving carbon emission efficiency, the article proposes corresponding countermeasures and suggestions from aspects such as tax rate levels, tax system adjustments, tax incentives, and differentiated regional arrangements.

Can we design food taxes to reduce agricultural greenhouse gas emissions in China? A perspective from animal protein intake of low-income populations

PurposeStudies on developed economies showed that imposing taxes on animal-based foods could effectively reduce agricultural greenhouse gas emissions (AGHGEs), while this taxation may not be appropriate in developing countries due to the complex nutritional status across income classes. Hence, this study aims to explore optimal tax rate levels considering both emission reduction and nutrient intake, and examine the heterogenous effects of taxation across various income classes in urban and rural China.Design/methodology/approachThe authors estimated the Quadratic Almost Ideal Demand System model to calculate the price elasticities for eight food groups, and performed three simulations to explore the relative optimal tax regions via the relationships between effective animal protein intake loss and AGHGE reduction by taxes.FindingsThe results showed that the optimal tax rate bands can be found, depending on the reference levels of animal protein intake. Designing taxes on beef, mutton and pork could be a preliminary option for reducing AGHGEs in China, but subsidy policy should be designed for low-income populations at the same time. Generally, urban residents have more potential to reduce AGHGEs than rural residents, and higher income classes reduce more AGHGEs than lower income classes.Originality/valueThis study fills the gap in the literature by developing the methods to design taxes on animal-based foods from the perspectives of both nutrient intake and emission reduction. This methodology can also be applied to analyze food taxes and GHGE issues in other developing countries.

Taxation of wealth and the rich as a social imperative

The subject of the article is the problem of taxing the rich and wealth, which is among the topical topics of public interest. The study aimed to highlight the latest initiative of a group of American multimillionaires to increase the level of tax rates on this ultra-rich category of taxpayers. This initiative can be considered a solidarity tax. The task was to characterize the quantitative indicators of this initiative. The article is motivated by the striking fact that 400 American ultra-billionaires have a total wealth worth 4 thousand billion dollars! The role of the research method of the problem was carried out by analyzing the quantitative parameters and fiscal and administrative features of taxation of the rich. Results of work. First of all, the results of the study consist in the interpretation of the multicomponent concept of wealth as an object of taxation. The impossibility of a general income and property tax is revealed, such a tax exists only as an unrealized project. The fiscal and administrative reasons for the abandonment of the inheritance tax in 21 countries, including Austria, Canada, Sweden and Israel, are clarified. Conclusions. The arguments are presented that property taxes harm the processes of wealth creation and capital. For this reason, the share of property taxes in tax revenues has fallen from 42% to 14% since the beginning of the XX century. The most significant fiscal potential for strengthening the taxation of the rich are taxes on income and profits. A quantitative and institutional analysis of existing wealth taxes in Norway and Switzerland was carried out. A serious fiscal and administrative problem of wealth taxes is the valuation of taxable assets. The wealth taxes have very great, virtually inexhaustible scientific and practical potential.

The pace of fiscal consolidations, fiscal sustainability, and welfare: An overlapping generations approach

This study investigates expenditure- and tax-based consolidations under the rule of reductions in debt-to-GDP ratios to the target level and the effects of these consolidations on fiscal sustainability and welfare, using an overlapping generations model with exogenous growth settings. We derive (i) a threshold (ceiling) of public debt to ensure fiscal sustainability, (ii) sustainable paces of these consolidations, and (iii) the optimal pace of consolidations under both expenditure- and tax-based consolidations, examining whether these consolidations are effective in the sense that they are sustainable, increase welfare, and induce fairness of welfare distribution across generations (lower intergenerational conflicts over welfare). We find that the pace of tax-based consolidation required to ensure fiscal sustainability is higher than that required for expenditure-based consolidation. As for welfare, countries may differ in their choice of the type of consolidation, which depends on the size of outstanding debts relative to capital, the economy’s productivity, tax rate levels, and the extent of utility derived by individuals from public goods and services. More importantly, it may also depend on whether policymakers emphasize social welfare or fairness of welfare distribution between generations. By contrast, a common result from the viewpoints of both social welfare and fair distribution of welfare across generations is that fiscal consolidation cannot persist much longer than 30 years (one period in the model). This result will support the pace of consolidation in the EU: the Stability and Growth Pact.

Exploring the impacts of China’s water resource tax policies: A trade-off between economic development and ecological protection

The reform of water resource tax policies is an important measure in the process of China’s green economic transformation. Therefore, improving the accuracy of tax policy impact prediction is crucial for policymakers to make correct decisions. This study focused on the water resource tax policies composed of water resource tax and water pollution tax. A water computable general equilibrium (WCGE) model extended from the traditional computable general equilibrium model was proposed to simulate the impacts of policy changes and determine the optimal tax rate range. Water self-purification capacity and agricultural subsidies were first considered in water computable general equilibrium, providing a simulation–evaluation method that could support the analysis of policy alternatives from a more realistic perspective. The results indicated that water resource tax and water pollution tax synergistically promote water conservation and water pollution reduction, and the negative impact on the economy when they are raised together is lighter than that when the tax burden is raised alone. The water resource tax not only has the best water-saving effect but also has the greatest negative impact on the economy. Technological progress has the best effect in reducing water pollution and is also conducive to reducing the adverse impact of tax increases on the economy. Taxation can also improve social welfare, and the optimal tax rate level is the combination that water resource tax is 4 Yuan/m3, and the water pollution tax is in the range of 5.6–8.4 Yuan/pollution equivalent. The results demonstrate the positive role of government in environmental governance and provide a scientific basis for policymakers to adjust the direction of policy reform, strengthen the collaborative design of water tax policies, and select the optimal tax rate level. Also, solutions of water computable general equilibrium could provide in-depth analysis of the trade-offs between violation risk and system benefits and generate more reliable results by reproducing actual situations. Moreover, the water computable general equilibrium model constructed in this study is also applicable to analyze other types of policies.

DETERMINAN TAX MORALE PADA ORANG PRIBADI NON KARYAWAN: STUDI EMPIRIS PADA MITRA GO-JEK INDONESIA

The contribution of income tax for individuals other than those who work as employees (PPh 25/29 OP) is only about 1% in the last seven years. It requires tax awareness and voluntary tax compliance of individuals doing independent work. This study aims to examine eight independent variables that influence tax morale as an important determinant of voluntary tax compliance. This study used the mix method by testing empirical data questionnaires on respondents of Go-Jek Indonesia partners.. The selection of this group is relevant because they have a greater chance of doing tax evasion. The results of this study indicate that the factor that most influences the tax morale of Go-Jek Indonesia's partners is the reference group. Perceptions of the level of government corruption, the efficiency of government spending, and personal interests also have a significant effect on tax morale. Meanwhile, perceptions of fairness, tax rate levels, financial difficulties, and the possibility of being examined and subject to punishment do not have a significant effect on the tax morale of Go-Jek Indonesia's partners. This can be a reference for collecting tax revenues through a more persuasive approach.

Determinants of Tax Revenue Performance in European Countries: A Panel Data Investigation

ABSTRACT The purpose of this paper is to investigate the existence and directions of the causal relationships between the level of tax revenue and a set of determinants, using data from 26 European countries for the period 2015–2018. In particular, by applying the panel cointegration method and estimating panel-based Error Correction Models, the long-run and causal relationships between the variables, are being explored. The results of the analysis confirm the existence of cointegration relationships (long-run relationships) and suggest a significant degree of interdependence. In particular, the investigation showed that the level of GDP per capita and public debt, the assessment of the level of control of corruption, the government effectiveness index, the degree of the efficiency of tax administration and the level of tax rates (individuals and corporate) significantly affect the level of tax revenue collection. The analysis also confirms the existence of macroeconomic interdependence (interconnection) between the European countries.

Education policy and R&D-based growth in an overlapping-generations model

ABSTRACT We employ a research and development (R&D) based growth overlapping-generations model with endogenous education decision-making and the government’s education policy to examine how education policy and human capital accumulation influence R&D activities. According to our study, an increase in the government’s public education expenditure has an inverted U-shaped effect on the steady-state growth rate. Moreover, a tax rate level that maximizes the steady-state growth rate exists. At this tax rate level, the steady-state welfare level is also maximized.

Tax systems of Ukraine and EU countries during the COVID-19 pandemic: current status and prospects

At the start of 2020, the world faced major challenges due to the COVID-19 pandemic. International institutions, governments and various organizations are forced to apply unprecedented restrictive measures in many areas of activity. The answer to these challenges by the governments of almost all countries of the world is actively manifested in tax measures aimed at supporting citizens and businesses. The article was devoted to the study of the level of taxation for certain taxes in Ukraine and EU countries in a crisis. The study proves the relevance of determining the optimal level of taxes to fill the budget. This study uses the method of comparative analysis, which compares the levels of tax rates in Ukraine and some EU countries. The optimal level of tax revenues to the state budget has been determined. The level of tax revenues to the Consolidated Budget of Ukraine has been analyzed and the main directions for improving the tax system of Ukraine have been identified. The necessity of focusing on the experience of highly developed EU countries in the field of taxation with the obligatory consideration of national characteristics is proved.

Determinan Kepatuhan Wajib Pajak Sektor Telekomunikasi Usaha Kecil Menengah di Sumatera Barat

This study aims to identify the factors that influence the compliance of MSME taxpayers in the telecommunications sector in West Sumatra. In particular, this study seeks to empirically examine the effect of tax rates, socialization, tax sanctions, and understanding of taxation on the level of taxpayer compliance. This research is quantitative, sourced from primary data obtained from taxpayers of SMEs in the Telecommunication Sector in West Sumatra. The sample of this study consisted of 40 compulsory people. This study found that tax sanctions and understanding of taxation have a positive effect on taxpayer compliance. Meanwhile, tax rates and socialization do not affect the level of compliance. Regardless of the applicable tax rate, taxpayers will automatically pay taxes at whatever tax rate level is following their income. In contrast, the socialization carried out is still classified as having a short duration, so that it is difficult for respondents to pay taxes. Understand socialization. Practically this research can contribute to the preparation of regulations regarding the calculation and collection of value-added tax and income tax on income in connection with the sale of credit, starter packs, tokens, and vouchers; it is necessary to review the regulations issued and effective in a short period so that taxpayers have not fully understood the socialization of this policy.

THEORY OF ATTRIBUTION DAN KEPATUHAN PAJAK DI MASA PANDEMI COVID-19

Tax compliance is an essential dimension in tax revenue collection. It plays a vital role in achieving a 3% fiscal discipline limit by 2023 and Indonesia's economic recovery. This study aims to analyze the factors that influence the compliance behavior of individual taxpayers (WP OP) from internal and external perceptions (Attribution Theory). The internal factors in this study are awareness, perception of justice, religiosity, whereas the external factors are tax service facilities, tax rate levels, technological advances, and COVID-19 education. The population is all WP OP in Yogyakarta City who registered with KPP Pratama Yogyakarta, of which 100 samples were taken using purposive sampling technique. Structural Equation Model (SEM) Partial Least Square (PLS) method was used to analyze the data. This study found that factors in a form of awareness have a significant positive effect on taxpayer compliance, so do religiosity and technological advances. On the other hand, the perception of fairness has no significant effect, tax service facilities, and COVID-19 education have no significant effect on taxpayer compliance. Lastly, the tax rate level negatively impacts taxpayer compliance, albeit insignificant.

Non-linear effects of tax changes on output: The role of the initial level of taxation

We estimate the effect of worldwide tax changes on output following the narrative approach developed for the United States by Romer and Romer (2010). We use a novel dataset on value-added taxes for 51 countries (21 industrial and 30 developing) for the period 1970–2014 to identify 96 tax changes. We then use contemporaneous economic records to classify such changes as endogenous or exogenous to current (or prospective) economic conditions. In line with theoretical distortionary and disincentive-based arguments – and using exogenous tax changes – we find that the effect of tax changes on output is highly non-linear. The tax multiplier is essentially zero under relatively low initial tax rate levels and more negative as the initial tax rate increases. Based on a global sample, these novel non-linear findings suggest that the recent consensus pointing to large negative tax multipliers in industrial countries, particularly in industrial Europe (e.g., Alesina, Favero, and Giavazzi, 2015) may represent a special case driven by high initial tax rates in these countries.

Determinants of tax evasion in Greece: Econometric analysis of co-integration and causality, variance decomposition and impulse response analysis

The purpose of this paper is tο examine the causality relationships and the degree of interdependence, between the level of tax evasion in Greece and a set of deterministic factors, using annual data for the period 1995 - 2018. The research methodology employed includes testing for stationarity with the Augmented Dickey-Fuller (ADF) test, cointegration test according to Engle-Granger approach, estimation Error Correction Models (ECM) to investigate the short-run and long-run relationships, variance decomposition and impulse response analysis. The results indicate a significant interdependence, which is an important tool for pursuing a targeted and effective policy to fight tax evasion. More specifically, the survey showed that the level of tax rates, the level of unemployment, the Rule of Laws index, the level of GDP, the level of non-performing loans, the government efficiency, the corruption perception index and the level of final consumption expenditure, affect the size of tax evasion in Greece, significantly. In addition, the results of variance decomposition and impulse response analysis, support the above findings, providing a quantitative representation of the causality relationships between the factors under investigation and tax evasion.

DETERMINANTS OF THE CAPITAL STRUCTURE OF EUROPEAN FIRMS: THE MODERATING ROLE OF EFSF/ESM FINANCIAL ASSISTANCE PROGRAMS

The present study has investigated the moderating effect of the European Financial Stability Facility (EFSF) / European Stability Mechanism (ESM) support to the firms’ indebtness. Using dynamic panel data, three models were estimated and aimed at the determination of the way that EFSF/ESM financial assistance programs could influence the impact of five firm-specific characteristics, namely growth, profitability, size, tangibility and non-debt tax shield on the capital structure of European firms. Data from 2,086 firms for the period 2003 – 2016 were used, and two dummy variables; one for the EFSF/ESM support period and one for any kind of economic crisis period were formed. The results indicated that pecking order prevailed over trade-off theory. Economic crises did not affect severely the firm-characteristics’ effects, but the EFSF/ESM programs influence appeared in three cases. During the period of EFSF/ESM assistance, profitability’s negative effect on long-term debt ratio disappeared and on total debt ratio strengthened, growth’s positive impact on total debt ratio diminished and non-debt tax shield acquired positive influence on total debt ratio. These changes might be explained by the increased levels of tax rates and decreased levels of uncertainty that the EFSF/ ESM programs caused, as well as by the reluctance of lenders to provide new funds.

Policy Implications of Non-Linear Effects of Tax Changes on Output

In an earlier paper, titled Non-linear effects of tax changes on output: The role of the initial level of taxation, we estimated tax multipliers using (i) a novel dataset on value-added taxes for 51 countries (21 industrial and 30 developing) for the period 1970-2014, and (ii) the so-called narrative approach developed by Romer and Romer (2010) to properly identify exogenous tax changes. The main finding is that, in line with existing theoretical distortionary and disincentive-based arguments, the effect of tax changes on output is highly non-linear. The tax multiplier is essentially zero under relatively low/moderate initial tax rate levels and more negative as the initial tax rate and the size of the change in the tax rate increase. This companion paper first shows that these findings have important policy implications, given that the initial level of taxes varies greatly across countries and thus so will the potential output effect of changing tax rates. The paper then turns to some specific policy applications. It focuses on the relevance of the arguments for revenue mobilization in countries with low levels of provision of public goods and social and infrastructure gaps, as well as in commodity-dependent countries. The paper then considers some practical implications for the standard debt sustainability analysis. Lastly, it evaluates the implications of the findings for the Laffer curve. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Foreign Direct Investment and Tax: OECD Gravity Modelling in a World with International Financial Institutions

In this paper, bilateral OECD FDI flow data from 1985 to 2017 is evaluated and compiled to create a new dataset in order to clarify the controversial role (in the literature) of corporate tax levels on the decisions of firms regarding whether or not, and where, to undertake investments. In the course of our research we find the need to control for interaction with international financial institutions: Membership in BIS, EBRD, ADB and MIGA. Quantitative analyses via gravity models firstly provide findings which are consistent with previous studies and, secondly, expand the knowledge about FDI and tax by providing new results relevant for policymakers in the context of globalization and international institutions. It is shown that falling corporate tax rate levels lead to increasing FDI inflows, the effect is, however, smaller than expected; if deviation from international cooperation is chosen as a national strategy (i.e. unilateralism), the tax rate, however, gains in importance. On the other hand, unilateralism triggers various effects decreasing FDI inflows, as trade openness is likely to decrease, the opportunity costs for other nations to deviate decrease, and therefore bilateral tax differences are likely to decrease as well; which will further reduce the effect of low tax levels. Evidence for the phenomenon of implementing low corporate tax levels in order to keep domestic firms within the country and reduce their incentives to invest abroad is not found. (JEL C32, E65, F21, F23, G20)

Tax-savvy executives

We investigate why firms include individuals with significant professional tax experience on their senior management team and the consequences associated with the presence of these tax-savvy executives. We find that past performance, network connections, geographic location, and tax-rate level, relative to industry peers, are all significant determinants of having a tax-savvy executive on the senior management team. Using propensity-score matching, we find that effective tax rates decrease substantially after the addition of a tax-savvy executive to senior management and revert following the departure of such an executive. We connect the changes in effective tax rates to changes in the usage of foreign subsidiaries in low tax jurisdictions.

ПОДХОДЫ К ВЫБОРУ ПОЛИТИКИ НАЛОГООБЛОЖЕНИЯ В КОНТЕКСТЕ РЫНОЧНЫХ СТИМУЛОВ: ПРИМЕР АРМЕНИИ

Features of progressive, proportional and regressive types of taxation in the framework of the national income redistribution system are considered. The paper analyzes the literature devoted to the study of the impact of tax types on market incentives. The influence of the system of deductions and social benefits on the level of income inequality of the population and revenues to the state budget is considered. The article presents the income tax system in Armenia, statistics on the level of employment by industry, wages and taxes paid before and after the reform of the transition to the proportional tax scale, which came into force on January 1, 2020. Examples of a number of countries that use differentiation of tax rates depending on marital status are given. The analysis concluded that the weakness of economic regulatory institutions is a more significant factor than the level of tax rates