Tax Reform Research Articles

Perfection of the tax system and its impact on macroeconomic policy in Georgia

In determining the macroeconomic policy of the state, in order to fulfill its goals and objectives, taxes and perfecting the tax system play a key role and represent one of the main instruments of the economic and financial policy of the state and can be considered as the leader of the country's macroeconomic policy. The aim of the paper is to discuss and analyze the role of the tax system and its subsequent reformation in the macroeconomic policy of the country, and in particular in the part of the fiscal policy, because through the tax and fiscal policy, the government of the country makes decisions in which direction it wants to develop the country's development strategy and define the macroeconomic policy. In terms of the sustainable development of Georgia and the implementation of the country's macroeconomic policy, the concept of economic development and the implementation of correct tax reforms in this regard, in the direction of perfecting the tax system, are important in the short and long term. Based on this, issues related to reforming and perfecting the tax system are one of the most important challenges of the country's economic policy and macroeconomic policy.

Study on the Impact and Response of the Implementation of Property Tax and Estate Tax on the Worldwide Asset Allocation of Chinese High Net Worth Individuals in the Context of Global Tax Reform

This paper examines the impact of property tax and estate tax implementations on high-net-worth individuals in China, offering insights into effective asset allocation and tax planning strategies to achieve legal tax optimization. It explores global asset diversification, the establishment of offshore trusts, family offices, strategic immigration planning, and philanthropy as mechanisms to mitigate tax liabilities while ensuring wealth preservation and compliance with evolving tax regulations. This analysis aims to provide a comprehensive framework for navigating the complexities of wealth management in the face of significant fiscal policy changes.

The impacts and instruments of energy transition regulations on environmental pollution

This study examines the influence of energy transition regulations on environmental pollution, exploring both the impact and instruments employed in regulatory frameworks. Focusing on the global shift towards cleaner energy sources, the research evaluates the effectiveness of regulations in reducing pollution levels. Through a concise analysis of literature and regulatory mechanisms, the study highlights the dual role of regulations as both mitigators of environmental harm and potential sources of unintended consequences. Over the past 17 years, there has been a notable and consistent reduction in average environmental pollution levels, indicating positive trends in environmental quality. The average environmental pollution decreased significantly from 0.0135 in 2005 to 0.0045 in 2021. The energy transition regulation (coal resource tax reform) proves to be effective in reducing environmental pollution. In detail, the energy transition regulation can effectively reduce environmental pollution in the western region, while it has no significant impact on environmental pollution in the eastern and central regions. The optimization of industrial structure, innovation level, and fiscal surplus are crucial pathways through which energy transition regulation inhibits environmental pollution. We provide a brief overview of the study's contribution to understanding the dynamic relationship between energy transition policies and environmental sustainability.

Do we have the tools for achieving distributive tax justice?

Purpose: How can tax policies serve as a tool to promote distributive tax justice? The purpose of this study is to discuss several policies that research shows are both feasible and effective in achieving distributive tax justice. Motivation: By many accounts, income and wealth inequality has grown significantly in many countries in recent years, violating many peoples' standards of “distributive tax justice”. Exploring policies that research has shown are both feasible and effective in achieving distributive tax justice should provide useful guidance to governments. Design/Methodology/Approach: This paper reviews research on policies that have been suggested as options, examining both the feasibility that these policies may be enacted and the effectiveness of these policies if actually implemented. Main findings: This paper suggests policies that would increase the taxes paid by the rich, reduce tax evasion by the rich, and decrease the tax burdens by the gender, race, and ethnicity of taxpayers. Practical implications/Managerial impact: These policies all work through existing taxes, they are all administratively feasible and effective, none of these policies raises statutory marginal tax rates, these policies are all consistent with the standard “Broad Base, Low Rate” approach to tax reform, and variants of all of these policies apply worldwide. Novelty/Contribution: These suggested policies are novel among many other analyses because the policies here all emerge from a framework that emphasises feasibility and effectiveness in achieving distributive tax justice.

The principle of contributory capacity and the non-correction of the personal income tax table

The tax issue in Brazil is marked by intense discussions, especially regarding tax reform, due to conflicts of interest between the application of taxes and the state's funding needs. The search for a fair and coherent taxation system that respects principles such as equality and contributive capacity is a constant challenge. The Income Tax, a federal tax established in the 1988 Constitution, is governed by the principles of generality, universality, and progressivity, affecting profits from business activities and personal income. The legislation advocates for the progressive application of rates, aiming at fiscal justice and the reduction of social inequalities. However, the last update to the calculation bases for the Personal Income Tax (IRPF) occurred in 2015, and the lack of monetary correction since then has raised questions about the offense to the principle of contributive capacity, due to the disregard for inflation and the decrease in citizens' purchasing power.

Recoinage of the imperial currency: the reforms of the viscount of Rio Branco (1871-1875)

Along with the Brazilian Law of Free Birth (1871), extensively discussed in historiographical literature, other reforms undertaken by the Viscount of Rio Branco, when head of the Council of Ministers (1871-1875), tended to be analyzed separately and thematically, and thus without rendering a clear meaning to his cabinet´s work. Through budgetary and banking-related primary sources, this article proposes that Rio Branco remedied the emancipation measure with financial, productive, and tax reforms in order to appease farmers in dire straits due to the wave of abolitionism. Despite the wide range of projects, also examined here, the capital mobilized by Rio Branco was specifically earmarked for coffee farmers of the Paraíba Valley. The Bank of Brazil, to which the greatest fraction of the Rio de Janeiro coffee capital was migrating, played a major role in the process. Thus, a type of uneven reformism, already glimpsed in the 1850s, was carried out by Rio Branco through a greatly increased public debt: on the whole, it focused on a recoinage of the imperial currency.

Research on the Historical Evolution and Development Trends of Property Tax in China

The reform of property tax, as a focal point of our country's tax reform, is closely intertwined with the development of the national economy and the well-being of the people. Based on the background and progress of property tax reform, this paper conducts an in-depth analysis of relevant literature and policy documents, studying the evolution of property tax in different historical periods. It also provides an evaluation of the current property tax system and suggestions for future development. The paper will further explore existing issues in the implementation of property tax, analyze potential solutions, and put forward recommendations and directions for property tax reform.

The consequences of the 2017 US international tax reform: a survey of the evidence

The 2017 US tax legislation—widely referred to as the Tax Cut and Jobs Act (TCJA)—fundamentally transformed the US system of international taxation. It ostensibly ended worldwide taxation but introduced, for instance, a new tax on “Global Intangible Low-Taxed Income”. This paper surveys the emerging empirical literature on the impact of the TCJA’s international provisions. It documents five robust findings in this empirical literature. First, the TCJA led to a general decline in US MNCs’ foreign acquisitions. Second, the TCJA increased US MNCs’ investment in routine foreign tangible assets. Third, the reform did not lead to any change in profit shifting by US MNCs beyond the magnitude that would be expected based on the TCJA’s tax rate reduction. Fourth, The TCJA appears to have reduced the market value of US MNCs relative to domestic US firms. Fifth, the TCJA does not appear to have had any detectable impact on domestic US investment and wages (although there are some contrary results for capital expenditures). The welfare implications of these findings depend crucially on whether US MNCs’ are viewed as having engaged in too much or too little foreign activity prior to the TCJA. This depends on the choice of theoretical framework and the relevant normative benchmark, and cannot readily be resolved empirically.

Impact of tax reforms: taxpayer behavior and compliance in Latin America

The article analyzes the impact of tax reforms on the economy and business viability of Latin American countries, seeking to answer the question about how the fiscal behavior of taxpayers and tax reforms influence tax collection and local development. Its objective is to analyze the relationship between the fiscal behavior of taxpayers and its impact on tax collection, and how these dynamics influence local development. A qualitative methodology was used in the research. As a result, it stands out that by improving the perception of justice and equity, the formalization of roles, the standardization of processes and the reduction of corruption, the negative impacts of collectivism are counteracted, generating citizen trust, promoting voluntary tax compliance and reducing tax evasion. In conclusion, it is emphasized that awareness about the importance of tax compliance and tax ethics are key elements to establish the desired tax culture.

THE PAKISTAN FACTOR IN SOUTH ASIA AND CENTRAL ASIA RELATIONS

This article discusses the multilateral relations between Pakistan and Central Asia. Pakistan's experience of unstable development is the result of our over-reliance on foreign aid and exogenous factors. To ensure a stable and sustainable trajectory of high growth, we focus on endogenous factors of growth such as domestic resource mobilisation, tax reforms, science, technology and innovation, stimulating export growth and we attract foreign direct investment. Remittances have provided significant support for our financial needs, but their true potential has not been realized. We will introduce reforms to increase remittances by offering incentives. Nevertheless, in order to achieve this long-term goal, we need to build a solid and self-sustaining platform using external funding sources in the medium term.

<i>Queer</i> Collective Social Action after Signing the Peace Agreement in Colombia

Between 2020 and 2021, Colombia went through several protests, a product of widespread discontent with the government of Iván Duque, which had three particularities: they happened during the health emergency caused by COVID-19; They showed outrage over a new tax reform and the Government’s lack of commitment to the continuity of the peace process; and new actors and groups calling themselves queer participated. Therefore, the objective of this article was to analyze the appearance of these participation spaces in the 21st century in which gender identities were protagonists. Methodologically, information hosted in the media, internet blogs and web pages regarding queer collective social action within the mobilizations was tracked. The results show that the repression of the public force towards queer groups, rather than discouraging protest, evidenced a tension between hegemonic masculinities and their rebellious projects.

Tax Reform and Economic Growth: A Meta-Analysis

Tax Reform and Economic Growth: A Meta-Analysis

The effect of negative gearing and capital gains tax reform on home ownership

AbstractThe article investigates the home ownership effects of abolishing deductions for negative gearing losses and halving the capital gains tax discount under Australian income tax laws. Home ownership evolves according to the balance of annual purchases and sales by owner‐occupiers and investors. This transaction‐based perspective on home ownership implies an important role for average holding periods, which determine the share of established homes sold each year. The tax change is estimated to increase the owner‐occupied share of the private dwelling stock by 4.7%, of which 2.1 percentage points are attributable to shorter investor holding periods.

Firm’s Divergent Green Innovation Response to Environmental Tax Reform: the Moderating Role of Corporation Social Responsibility

Firm’s Divergent Green Innovation Response to Environmental Tax Reform: the Moderating Role of Corporation Social Responsibility

ANALYSIS OF SYSTEM TAXATION TO LATVIA: BASIC LINES AND ESSENTIAL ASPECTS FOR MODERNISATION OF TAX SYSTEM OF UKRAINE

The article considers the taxation system and its impact on the intensification of entrepreneurial activity, conducts a comparative analysis of the current taxation systems of Latvia and Ukraine, highlights their shortcomings, advantages, impact on the development of the country, activities of business entities and welfare of citizens, analyses the tax administration procedure and the mechanism of taxation by direct and indirect taxes. The issue of using foreign experience of tax reforms in the framework of harmonisation of the Ukrainian tax system with the global one is extremely relevant, especially in the current economic environment. As a result of the study, the author analyses the current tax legislation of Ukraine, which is embodied in the provisions of the Tax Code, in comparison with the tax legislation of Latvia. Using the model of the Latvian taxation system as an example, the author substantiates its effectiveness when using a sufficiently high level of tax deductions. To achieve this goal, the author analyses the state of the Latvian taxation system in 2017–2023, and studies the economic freedom index of Latvia in dynamics and its impact on the development of entrepreneurial activity. It is noted that the taxation process should contribute to the implementation of employment policy, influence the distribution of income in the direction of ensuring equity, and create a barrier to the use of shadow tax schemes. Prospects for further research in this area are the development of measures to improve the domestic taxation system.

Reflections on Doing a Good Job of Individual Income Tax Collection and Administration in Grassroots Tax Departments

With the economic development, the amount of per capita disposable income has increased dramatically, and the income gap between the natural person subjects has become bigger and bigger, while the personal income tax has gradually become one of the important taxes in the tax collection and management after going through seven reforms, playing a more significant role in regulating the distribution of income and promoting the fairness of taxation. In the context of the current individual tax reform, combined with the requirements of deepening the reform of the levy and administration system, four countermeasures are proposed from the situation of individual income tax levy and administration of grass-roots tax departments, such as strengthening the legal protection, enhancing tax compliance, strengthening data sharing, and strengthening the support of talents.

The Impact of Water Resource Tax on the Sustainable Development in Water-Intensive Industries: Evidence from Listed Companies

China is taking measures to minimize the negative impact of the long-term extensive water use model on the water environment. The large number of zombie enterprises with high energy consumption and low energy efficiency in highly water-consuming industries is one of the important reasons for the water resource governance plight of China. Based on the quasi-natural experiment of water resource tax reform from 2016 to 2020, this paper uses the panel data of listed companies to quantify the impact of water resource tax on the zombification of high water consumption enterprises in this paper. The results show that the zombie degree of high water consumption enterprises after the implementation of the water resource fee to tax reform has become significantly higher, and this conclusion remains stable after a series of tests. The conclusion of this paper has major implications regarding sustainably developing zombie enterprises and highly water-consuming industries in terms of policy.

Economic Crisis of Bangladesh's RMG Sector Effect of Government Borrowing to Meet the Budget Deficit

The economic crisis in Bangladesh's real estate industry sector is a cause for concern as it is heavily affected by the government's borrowing to meet the budget deficit. The high level of debt has led to inflation and a decrease in consumer spending, which has harmed the real estate market. Developers are struggling to find buyers for their properties and are facing financial difficulties as a result. The government should consider implementing policies to address the budget deficit and reduce the burden on the real estate industry. This could include measures to increase revenue through tax reform and reducing government spending. Additionally, the government should also focus on providing incentives for investors to invest in the real estate market, such as tax breaks and subsidies. Overall, addressing the budget deficit and providing support to the real estate industry is crucial to ensuring the stability and growth of the economy. The majority of the government's revenue comes from taxes, VAT, and the domestic sale of bonds and certificates of deposit, making it one of the largest corporations in any nation's financial industry. There are three organizations through which governments may occasionally borrow money from other nations: the World Bank, the IMF, or LIBOR London Inter Bank. To close the budgetary gap, higher-rate borrowing will be necessary. Estimating income and expenses before making any purchases or placing anything on the market is the primary tenet of a budget.

Is the Inflation Reduction Act Effective? A Forward-Looking Review of the IRA

This paper conducts an in-depth examination of the Inflation Reduction Act (IRA), significant legislation aimed at addressing a series of critical economic and climate issues in the United States. It introduces the concept of inflation and discusses the key provisions of the IRA across four major areas: climate change, energy security, prescription drug prices, and tax reforms. Additionally, the paper analyzes the Act’s overall impact on inflation separately, providing a comprehensive review of its effectiveness. The study evaluates the IRA through an analysis of economic data and news reports, considering the policy’s broader implications and offering suggestions for future research.

TRANSACTION-SPECIFIC TAX REFORM IN THREE STEPS: THE CASE OF CONSTRUCTIVE OWNERSHIP

Similar investments are often taxed differently, rendering our system less efficient and fair. In principle, fundamental reforms could solve this problem, but they face familiar obstacles. So instead of major surgery, Congress usually responds with a Band-Aid, denying favorable treatment to some transactions, while preserving it for others. These loophole-plugging rules have become a staple of tax reform in recent years. But unfortunately, they often are ineffective or even counterproductive. How can Congress do better? As a case study, we analyze Section 1260, which targets a tax-advantaged way to invest in hedge funds. This analysis is especially timely because a multi-billion dollar litigation is pending about this rule. This Article proposes a three-step approach. First, when faced with a new type of tax planning, policymakers should decide whether a response is really necessary. How harmful is the transaction? How feasible is it to target this transaction without also burdening “good” transactions, which don’t involve the same abuse? This first phase determines what we call “the normative presumption” about the transaction. Second, Congress should define which transactions are potentially problematic. An “initial filter” should exempt transactions that clearly don’t pose the relevant concern. Third, once a transaction is deemed to be potentially problematic, a sophisticated test is needed to check whether it actually is. Admittedly, a sophisticated test is costly to administer. This is why initial filters are needed to limit how often it is used. Along with proposing this three-part framework, this Article offers a novel critique of a sophisticated test the government has begun using: a “delta” test, which measures how closely investments track each other. Although delta is often considered the gold standard, we show how easy it is to manipulate. The trick is to add contingencies (e.g., so the investment terminates when the price reaches a specified level). To head off this gaming, we recommend an alternative test that focuses on value instead of on changes in value–and, more generally, on enduring features instead of temporary quirks.