Tax Scheme Research Articles

Land Stewardship and Development Behaviors Under an Ecological-Impact-Weighted Land Value Tax Scheme: A Proof-of-Concept Agent-Based Model

Sprawling land development patterns have exacerbated ecological degradation, social fragmentation, and public health problems. Perverse incentives arise from the ability to privatize collectively created value in land rents and socialize ecological costs. Land value taxation (LVT) has been shown to encourage urban infill development by reducing or eliminating rent-seeking behavior in land markets. However, despite its purported benefits, this tax reform is value monistic in its definition of optimal land use and, therefore, does little to address the lack of non-market information to inform land use decisions. We propose an ecological-impact-weighted land value taxation policy (ELVT) which incorporates the ecological footprint of land use into one’s land value tax burden. We test both proposed policies (LVT and ELVT) relative to a “status quo” (SQ) property tax scheme, utilizing a conceptual spatially explicit agent-based model of land use behaviors and housing development. Our findings suggest that both tax interventions can increase the capital intensity and decrease the land intensity of housing development. Furthermore, both tax interventions can lead to a net profit loss for speculators and a decrease in the average housing unit price. The ELVT scheme is shown to significantly increase urban nature provisions and dampen the loss of ecological value across a region.

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

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

Usury enforcement as an alternative to capital taxation in pre-modern states

AbstractAll governments have an obligation to protect their territory and the wealth within that territory from external predation. In fact, since war has historically resulted in the plunder and destruction of wealth, it seems straightforward to suggest that the cost of providing adequate defense of one’s territory is a function of the accumulated wealth within the territory. Suppose that all wealth in society is capital. The accumulation of capital conveys a private benefit to its owner, but imposes an external cost on society. As with any externality, the optimal tax policy would be to tax capital. The revenue from capital taxation could then be used to finance defense. Such a taxation scheme, however, requires the state has an appropriate level of bureaucratic capacity. During the Middle Ages and the early Renaissance, this sort of state infrastructure did not exist. Yet the rulers of those states faced the same constraint. In this paper, I argue that the enforcement of usury laws during this period replicate the outcome of the optimal capital tax. Lending at interest was prohibited. However, rulers often allowed certain groups to lend in society in exchange for a license fee. This granted monopoly status to lenders. At the same time, rulers imposed binding price ceilings on interest rates. The combination of these three characteristics of enforcement replicate the long-run restriction on capital accumulation of the optimal capital tax and generate revenue that is possibly equivalent to the tax as well. I then model ruler behavior given these incentives. Finally, I use historical evidence from England, Italy, and France to support my argument.

Comprehensive Research Study of Challenges and Opportunities in Electric Vehicle Adoption: Case Study in Jakarta

This article delves into the potential of electric vehicle (EV) adoption in Central Jakarta, a densely populated area grappling with significant urban and transportation challenges. Trams are an environmentally friendly mode of transport that is environmentally friendly, efficient, comfortable, accessibility, and enhances the aesthetic value of the city. Trams do not produce exhaust emissions, so they can help reduce air pollution in big cities. This is important for improving air quality and public health. The research variables include cost implications, environmental impact, and other relevant aspects of transitioning from fuel-based cars and motorcycles to electric vehicles. The research extensively explores various reputable sources such as papers, journals, and research studies relevant to the chosen research variables, enhancing the credibility of the findings. The study reveals that while the adoption of EVs presents several opportunities, such as reducing traffic congestion and environmental pollution, it also poses significant challenges. These include high costs of EVs, lack of charging infrastructure, and consumers' unfamiliarity with the technology. The research suggests that addressing these challenges requires an integrated and comprehensive solution, including policy measures such as increasing public charging infrastructure, transforming tax schemes, and providing incentives for EV users. This research contributes to the ongoing discourse on sustainable urban transportation, providing valuable insights for policymakers, academia, and the local community in Jakarta and beyond.

Simulating the impact of a carbon tax on food in four European countries

Abstract Since agriculture is responsible for a considerable share of anthropogenic greenhouse gas emissions (GHGE), this paper examines the impact of various carbon taxes designed to incentivize environmentally friendly food consumption patterns in four European countries: Finland, Italy, Sweden, and the United Kingdom. As the proposed fiscal policies are likely to affect food consumption patterns, the study also assesses the consequent changes in diet quality and welfare. The results from this analysis reveal considerable variations in the reduction of GHGE across countries and tax schemes. While most taxation schemes have only a modest impact on dietary quality, these effects differ among nations. Additionally, the welfare cost of the compensated scheme is relatively small but not insignificant. These findings raise questions about the efficacy of a common European fiscal policy for climate mitigation compared to a more flexible approach where each member state calibrates the tax according to its unique circumstances.

Designing China's environmental tax schemes from the perspective of differential tax rates

The Environmental Protection Tax Law of the People's Republic of China was promulgated in 2018. However, it is uncertain whether the tax rates defined under the law are reasonable. Environmental tax reform would help the government improve the law's emission reduction effect. This paper aims to design tax schemes from the perspective of differential tax rates and propose environmental tax reform strategies. To support this goal, we adopted a directional distance function, meta-frontier analysis, and an exponential attenuation model to construct a differential tax rate model. Next, starting with the current differential provincial tax rates (scheme B), we proposed three-level differential tax rates, in which the adjusted provincial tax rates (scheme P), differential sector tax rates (scheme S), and differential province–sector tax rates (scheme P–S). Then, we analyzed three new tax schemes and proposed two step-by-step reform strategies. We selected SO2, NOx, and CO2 for empirical analysis. We found that in the short term, the government should prioritize scheme P and set more effective tax rates for SO2 and NOx. In the long term, the government should implement scheme P–S to consider both regional heterogeneity and industrial heterogeneity within a province. Specific measures should set a high tax rate for the light industry category and a low tax rate for energy production and heavy industry category. In addition, we propose that China should include a carbon tax in the scope of its environmental taxes. Our research provides valuable guidance for China's future environmental tax reform.

Research on the influence of consumer Perceived Value on the purchase of new energy vehicles

In recent years, low carbon economy has gradually become a hot issue of global concern. At present, Chinese consumers are still in the initial stages of understanding and research on carbon tax. By analysing various carbon tax regimes domestically and abroad, this article employs a quantitative research methodology to explore the influence of consumer perceptions on customers' purchase of new energy vehicles. This paper concentrates on the operational models of several major carbon tax systems at home and abroad and provides a thorough overview of the setting of carbon tax schemes, risk management, and the economics of carbon trading in each country. Drawing on the experiences of foreign countries and regions in implementing carbon tax schemes, this paper offers suggestions on how China can design carbon tax policies to promote green consumption behavior among contemporary Chinese consumers.

The distributional implications of health taxes: A case study on the Italian sugar tax

As over-consumption of sugar-sweetened beverages (SSBs) is considered a major contributor to the rising prevalence of obesity and associated diseases, public authorities from different countries are considering the introduction of SSBs taxation. In this study, we evaluate the potential impact of the upcoming Italian sugar tax on SSBs and sugar consumption, also accounting for differences across socio-economic groups. We also analyze alternative SSBs tax designs (i.e., excise tax on sugar and two-tier tax based on sugar content) to compare their effectiveness and provide a more general analysis about the outcomes of SSBs taxation. In our empirical analysis, we first estimate consumers’ demand for SSBs using the random coefficient logit demand model (Berry, Levinsohn, and Pakes, 1995) and Nielsen Household Panel data of SSBs purchases for the period 2019–2020. Then, the estimated demand parameters and marginal costs for SSBs are employed to conduct counterfactual simulations to derive the new market equilibria under the simulated SSBs tax scheme scenarios. Our results show that the Italian sugar tax is the most effective in reducing SSBs and sugar consumption (on average, by 18% and 24% respectively) among all the simulated tax scenarios. This is also due to the strategic reactions of SSBs manufacturers who over-shift the change in marginal cost (i.e., tax rate) to final prices. Moreover, despite being financially regressive, taxes on SSBs may be progressive from a health perspective, as low-income groups experience the greatest fall in SSBs and sugar consumption. Reinvesting tax revenues in health-related programs targeting the most vulnerable socio-economic groups (i.e., low-income households with children) may minimize the regressivity of SSBs taxes.

Distributionally robust newsvendor problem with partial demand information under carbon emission regulations

Carbon emission schemes are widely adopted and implemented in practice to control greenhouse gas emissions. However, a firm restricted by carbon emission schemes with only partial demand information may face greater challenges. In this paper, we investigate an ordering and pricing newsvendor problem with partial demand information, which considers carbon emissions generated from the processes of ordering and disposing of the excess inventory. We propose three distributionally robust models to maximize the worst-case profit under different carbon emission regulations: carbon tax, cap-and-trade and carbon cap, respectively. We derive the implicit solution under the carbon tax scheme and design heuristic algorithms based on Lagrangian relaxation under the cap-and-trade and carbon cap regulations. Numerical analysis indicates: (i) all three regulations are effective in reducing carbon emissions; (ii) the implementation of carbon schemes leads to higher optimal pricing and lower optimal ordering quantity, both carbon tax and carbon cap regulations will always lead to lower profit, while the retailer may benefit from the cap-and-trade regulation by selling out the carbon credit; (iii) the proposed approach performs well under different distribution specific scenarios.

Antibacterial resistance and the cost of affecting demand: The case of UK antibiotics

Consumption of broad-spectrum antibiotics is associated with rising antimicrobial resistance (AMR) levels. The use of broad-spectrum drugs, particularly of cephalosporins, quinolones, and co-amoxiclav contributes the most to the rise in AMR. We use aggregate sales data on antibiotics from the UK to estimate structural demand models and reveal drug substitution patterns. We then simulate alternative tax schemes to evaluate the effectiveness of shifting demand from broad- to narrow-spectrum drugs. Our estimates suggest that these policies can be highly effective in demand management and come at a relatively low cost regarding changes in consumer and producer surplus.

Balancing economic and environmental goals: A novel strategy for growing items acquisition in livestock farming under an incremental discount and a power demand pattern

The human food supply chain is significantly influenced by growing items (GIs) like beef, sheep, hog, chicken, turkey, and other species, as these provide major contributions to food security worldwide. Industrial farming businesses carry out their operations by purchasing a certain species of baby GIs from a supplier, feeding and caring for them until they reach an acceptable living weight, and then selling them after they have been slaughtered and processed. In addition, the production of livestock worldwide accounts for 14.5% of all anthropogenic greenhouse gas (GHG) emissions, according to the Food and Agriculture Organization (FAO), making it a substantial contributor to GHG emissions. Thereby, to regulate emissions, governments from several countries have imposed a tax scheme on the farm’s emission volume. Due to the discrete nature of purchase numbers, using a differentiation-based optimization approach is not appropriate for determining the optimal GI procurement for an industrial farm, making the decision significantly more challenging. The primary goal of this study is to identify the optimal number of GIs for a farm to enhance financial and environmental performance when the cost per weight unit of procurement depends on the volume of purchases and the consumption of processed commodities follows a power demand pattern. A comparison tactic is employed only for the discrete decision variable, while the classical optimization tactic, based on differentiation, is adopted for the remaining continuous decision variable of the derived problem. Our method, which is quite straightforward in its operation, enables the creation of a rule to distinguish between instances in which there is only one optimum solution and those in which there are two. The results from the execution of the novel solution technique reveal that the farm reduces the overall cost of the order while keeping the integrality of the purchased GIs by taking into account the regulation for carbon emissions, the discount, and the power demand pattern.

On the issue of determining the actual tax liabilities in transactions with "high tech" companies

The article is devoted to the issues of improving the methodology for determining valid tax liabilities (BOTTOM) in transactions with "high tech" companies. It is noted that due to the increase in the number of "high tech" companies, the question arises not only of the control of their chain of exchange of goods/works/services, but also of determining the rules for calculating the taxes. In this regard, the aim of the article is to develop a methodology for determining the tax liabilities when identifying transactions carried out with "high tech" companies based on an analysis of existing judicial practice. The object of scientific work is a set of socio-economic relations that arise in the process of determining the BOTTOM. The subject of the study is the methodology for determining the actual tax liabilities (BOTTOM) in transactions with "high tech" companies. The research methodology is based on the use of tools and methods for the analysis and synthesis of judicial practice, tabular and graphical methods of data visualization. The scientific novelty of this study lies in the adaptation of the general conceptual methodology for determining the actual tax obligations of Tikhonova A.V. in relation to such a type of tax schemes as a transaction with high tech companies. In the end of the article, transactions with "high tech" companies were classified, the basic method of calculating the BOTTOM for each of the types of transactions considered was determined, the main risk markers of tax evasion schemes in transactions with "high tech" companies were identified, and measures of the tax authority to prove the fact of participation of a "high tech" organization in the transaction were formulated. Thus, the article has meaningful practical significance and will be useful to a wide range of specialists from both tax authorities and consulting organizations.

Fair inheritance taxation

AbstractWe study the optimal taxation of bequests in a successive‐generation model in which individuals have heterogeneous preferences over their consumption and the net‐of‐tax bequest received by their heir. We show that it is possible to reconcile the views that children should not be penalized by the lack of altruism of their parents, and parents should be free to choose their bequests. The resulting optimal non‐linear inheritance tax scheme collects money and redistributes it through a non‐negative demogrant, and does not tax, and, in some cases, subsidizes bequests lower than that of the poorest altruistic individual.

TAX RISK ASSESSMENT OF TAX CONTROL PERSONS: REGIONAL ASPECT

The article analyzes the issues of assessing the tax risks of individuals, tax audits (before and during tax audits). The territorial features of tax control (industry) are considered, Geographical, financial, Innovation and Investment). Key tax schemes identified, Identifying tax risks on individual taxes. The main factors of tax risks in individuals are substantiated, Payments to individuals for certain taxes. Research writing purposes: determining the main tax risks, which arise for taxpayers on separate taxes and to allocate factors of tax risks taking into account regional features. The conclusions received during the research: Estimated current situation on personal income tax, Insurance taxes, VAT at the regional level and the possibilities of eliminating tax risks.

ASSESSMENT OF TAX RISKS OF PERSONS, PROFESSIONAL INCOME TAXES

The article analyzes the issues of assessing the tax risks of individuals, Transferred to Professional Income Tax. The features of tax control are considered, in the current economic situation (preventive, Current, Before and after tax audits). The main measures of tax control are highlighted, used to improve its effectiveness, and the implementation of pre-test analysis in the context of identifying tax schemes involving self-employed persons. Suggested options for determining the amount of tax risk. Tax risk matrix developed, which it is advisable to implement in the mobile application «My tax». Purposes of writing a research paper: to identify the main tax risks, Taxpayers who have a tax on professional income and highlight the areas of their assessment. Conclusions, obtained in the course of the study: the current situation on the implementation of tax control of self-employed persons is estimated and the possibilities of eliminating tax risks are considered.

Fiscal dominants of military financing

Long-term military aggression has required updating approaches to budget revenue forma­tion to increase the fiscal effectiveness of taxes and ensure budget sustainability. The article is aimed to substantiate the main priorities for boosting the efficiency of the central budget revenue formation system in combating full-scale military aggression, which involves compliance with the principle of fiscal suffi­ciency in financing defense and security needs and fostering economic recovery. Syste­matic and logical approaches were used in the article. Various methods were applied, including gene­ralization, comparison, analysis and syn­the­sis, scientific abstraction and expert eva­luations. The USA’s experience in the field of budget revenues formation during wars shows that the authorities tried to design the taxpayer’s trust and ensure a fair cost for conducting a war for every citizen. The classic measures were increased tax rates on income and profits, and the active sale of government bonds. Great Britain has applied identical measures. The budget revenues formation policy has demon­strated significant changes since the full-scale invasion. The percentage of GDP redistribution through the central budget revenues in 2023 equaled 41.76%. The main features of tax revenues shaping (into a central budget) in 2022–2023 have been identified. Priority measures to raise the fiscal significance of tax revenues have been substantiated. This concerns the decrease of the shadow part of the gambling business; the excise goods markets; and labor incomes. In addition, the prerequisites for introducing a progressive personal income tax scheme have been determined.

Assessing the decarbonization roadmap of a RoPax ferry

AbstractThe reduction of emissions from shipping is necessary to combat climate change. One viable option is to change the fuels utilized. In this study, we investigate the environmental and economic performance of marine diesel oil (MDO), liquified natural gas (LNG), liquified biogas (LBG), and a mixture of LNG and LBG. We study a real case of a roll-on/roll-off passenger ship (RoPax) in Finland. Life cycle thinking is applied to assess the environmental impact, covering emissions from well to propeller (raw material extraction, fuel production, transportation, storage, and combustion), while the economic implications are estimated through future fuel prices and carbon pricing from 2023 to 2050. The carbon pricing covers different carbon tax schemes, namely stated policies scenario (STEPS), sustainable development scenarios (SDS), and net-zero emissions (NZE). STEPS reflects the existing measures and policies under development; SDS pursues to meet the goal of Paris Agreement, while NZE aims to reach net zero. Adopting LNG would improve carbon dioxide emissions, but the overall climate change impact was not significantly lower than MDO. It is also found that the biggest environmental improvement can be obtained by switching to LBG, although future availability can be an issue. The economic assessment shows that LBG has the highest fuel price uncertainties, although its carbon cost will be the lowest. Alternatively, using LNG & LBG mixture can serve as a transition path to contain climate change while dealing with its price uncertainty and availability.

Cinema Co-production, Film Distribution in Multiple Languages and Inequality in the Global Language System: A Call for Robust Public Data

Language has proven to be an important factor in film performance models, film finance considerations, and festival program selections. This essay uses multi-year global data sets (UN and supplementary databases) to analyse the relationship between the languages in which a film is produced and offered to cinemagoers on the one hand, and the co-production activities and dynamics which engender these patterns on the other hand. While European Commission policies, underlining the peculiar “linguistic polity”of the European Union, have been influential in the making of multilingual cinema productions motivated by subsidy rules, taxation and grant schemes, the pattern is rather global, reflecting uptake of cinematic product in many “territories” and the mobilization of film across national and regional language divides. The analysis shows that Europeanization has much wider implications beyond Europeans’ cultural consumption and identity construction, with Europe’s co-production policies casting a wider net of cultural resistance to Global Hollywood and its majority of English-language blockbusters as well as attending to language preservation in the European neighborhood in addition to Europe, where local and regional heritage policies are well instituted. The study examines the results against Abram de Swaan’s theory of the Global Language System, examining the Q-value theory to the language patterns emerging from film productions with multiple languages, which must be assessed in its relation to cultural consumption that may not follow from formal schooling and habitus formation.

Увеличение уставного капитала как дивиденды. Налоговый казус иранского банка

The article examines the issues of the validity of qualifying an increase in the authorized capital (in the absence of profit distribution) as income for tax purposes. According to the author, if the increase in the authorized capital is due to retained earnings (proportional increase in the nominal value of the participants' shares without changing the size of the shares) is not an element of a tax scheme, it is a common practice of investment behavior that does not generate income for participants or shareholders.

Assessing the economic viability of the Arctic Northeast Passage from 2021 to 2065

ABSTRACT The Northeast Passage (NEP) holds immense potential as a link for maritime transport activities between Europe and Asia, primarily due to the extended sailing season resulting from global warming. However, the economic viability of the Arctic shipping route remains disputed. This study aims to comprehensively evaluate the feasibility of container transportation along the NEP compared to that along the Suez Canal Route (SCR) by using current (2021–2023) and future (2025–2065) scenarios. The results reveal that larger vessels have lower CO2 emissions and costs than small vessels in the NEP, but the costs for larger vessels in the NEP are still higher than those in the SCR throughout both summer and winter seasons under the current scenario. The outcomes also show that a progressive carbon tax scheme will increase the unit shipping costs for all routes in the future scenario, with the NEP being most economically viable during summer. Furthermore, the extended navigable period (NP) bolsters the NEP’s economic cost advantage during a seasonal period. Nevertheless, from a year-round operations standpoint, the NEP remains less competitive than the SCR before 2065. The conclusions drawn from this research serve as a significant resource for decision-makers when formulating operational plans.