Changes In Tax Structure Research Articles

The impact of factor tax structure on firm innovation: evidence from China

ABSTRACT Labor and capital are two of the most fundamental factors of production, and the ratio of labor to capital tax can reflect the structure of factor tax. Despite the existing literature demonstrating the impact of taxation on enterprise innovation, few studies have addressed the effect of changes in factor tax structure on enterprise innovation. Using provincial tax data and listed company data from China between 2006 and 2017, this study empirically tests the impact of factor tax structure on enterprise innovation using the Poisson quasi-linear method. The findings indicate that a higher share of labor tax and a lower share of capital tax tend to inhibit enterprise innovation. Conversely, a higher tax compliance rate for labor tax and a lower compliance rate for capital tax are also unfavorable to enterprise innovation. A non-linear relationship is observed between factor tax structure and enterprise innovation, where a higher share of labor tax and a lower share of capital tax can promote enterprise innovation when exceeding a specific limit. The results of this study have theoretical and practical implications for improving factor tax structure, stimulating enterprise innovation, and promoting economic transformation toward higher quality.

Modern Tax Trends and Economic Growth in a Turbulent World: Insights from Developed and Developing Economies

The article examines recent trends in tax level and structure changes within developed and developing economies in relation to economic growth. The study’s significance stems from increasing geo-economic turbulence and emerging risks in the global economy, necessitating fiscal regulation. The analysis spans the period from 2009, post the Great Recession, to the present day. We tested the hypothesis that discernible patterns could be identified through statistical analysis regarding the relationship between tax indicators (level and structure) and economic growth indicators. However, no such clear patterns were found. In essence, it cannot be definitively concluded that reduced tax levels and/or increased indirect tax shares do explicitly foster national economic growth. Tax impact on economic growth varies significantly across developed and developing economies, presenting a complex and nuanced picture. The nature and strength of this influence are largely shaped by the specific circumstances of each location and period. In order to identify their unique impact, counterfactual analysis is required. In the course of further research, it is important to consider, firstly, the increased fiscal activism of the post-pandemic period: in this case, the research outcomes may be different from those obtained for the period already examined. Secondly, considering the ongoing processes of geo-economic fragmentation, it is recommended to re-examine the influence of taxes on economic processes. This investigation should adhere to the evolving framework of new macro-regions worldwide, rather than the conventional dichotomy of developed and developing economies. Participants within these macro-regions, interconnected through supply and value chains, will need to work together to align their tax rules and policies for mutual benefits.

Regional variation in tax compliance and the role of culture

This research note analyzes the role of culture on individuals’ tax compliance by focusing on regional differences within a single country: Italy. Southern Italy has long been a focus of research interest, not only for its high rates of tax evasion, but for a host of other social and political ills, all usually attributed to regional culture. Our laboratory tax compliance experiment, conducted in provinces of the northern and southern regions, reveals that taxpayers in the north and south generally behaved alike both in terms of average compliance rates and individuals’ sensitivity to changes in tax structures—except for lower responsiveness to greater redistribution of tax revenues among subjects in Salerno than those in Bologna. This suggests the limited explanatory power of culture in tax compliance in favor of institutional explanations.

Brand-switching and tobacco taxation in Vietnam

BackgroundThe government of Vietnam is embarking on a radical tobacco excise tax reform, switching from the current pure ad valorem scheme to a mixed system by adding a specific component....

Taxing the People, Not Trade: the International Monetary Fund and the Structure of Taxation in Developing Countries

Strengthening fiscal capacity in low- and middle-income countries is essential for achieving sustainable development. The International Monetary Fund—the world’s premier agent of fiscal policy reform—has taken a front-stage role in this process, promoting a model of tax policy that favors broad-based consumption taxes and discourages trade taxes. This article investigates the links between IMF-mandated tax reforms and the evolution of tax revenues. Using novel measures of tax-related conditionality and disaggregated data on revenues, our analysis shows that IMF interventions are significantly related to changes in tax structure. In particular, IMF programs increase revenues derived from goods and services taxes, but decrease revenues collected from trade taxes. Results for personal and corporate income taxes are inconclusive. These findings have important implications for debates on the role of the IMF in developing countries.

Matematický model Giniho koeficientu a zhodnocení redistribuční funkce daňového systému České republiky

The paper deals with two related topics - a mathematical model of the Gini coefficient, and its application in the taxation theory. However, the mathematical part of the paper should not only be understood as a traditional methodological starting point, but it has also didactic character and correctly describes the properties of the Gini coefficient, pointing to misinterpretation deficiencies found in a number of contemporary works. In the application part of the paper, we study the fulfillment of redistribution function of the tax system in the Czech Republic by using the Musgrave-Thin index coefficient M. Our research implies that the global progressivity of the tax allowance system in the Czech Republic was moderately progressive throughout the analyzed period 2006-2016. The considerable change in the personal income tax structure made in 2008 did not essentially reflect the global tax progressivity. Key words: tax progressivity, Gini coefficient, Lorenz curve, redistribution

Basic concepts and features of good and service tax in india

This paper is an analysis of what the impact of Goods and Services Tax will be on Indian Tax Scenario. Here stated with a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has be detailed discuss in this paper as the background, silent features and the impact of GST in the present tax scenario in India. GST is the only indirect tax that directly affects all sectors and sections of our economy. Ignorance of law is no excuse but is liable to panel provisions, hence why not start learning GST and avoid the cost of ignorance. The GST is aimed at creating a single, unified market that will benefit both corporate and the economy. Several countries implemented this tax system followed by France, the first country introduced GST. India is a centralized democratic and therefore the GST will be implemented parallel by the central and state governments as CGST and SGST respectively. The objective will be to maintain a commonality between the basic structure and design of the CGST and SG

TAX STRUCTURE AND ECONOMIC GROWTH: DO DIFFERENCES IN INCOME LEVEL AND GOVERNMENT EFFECTIVENESS MATTER?

We examine the effects of both overall tax rate and changes in tax structure on growth by using data for more than 100 high, middle, and low income countries by employing the GMM estimation methods. In general, our results do not support the argument that overall tax rates or changes in tax structure have a significant effect on growth. However, we find that a shift from income to consumption and property taxes leads to a positive and significant effect on growth rate while a shift from consumption and property taxes to income taxes has a positive effect for low-income countries.

An exploratory study on evolution & implementation of gst in india

This paper is a brief description of the historical scenario of Indian taxation and its taxstructure. Then why there is a need for the change in tax structure from traditional system toGST model. Goods and service tax is a new story of VAT which gives a widespread setofffor input tax credit and subsuming many indirect taxes from state and national level.Evolution of GST has be detailed discuss in this paper as the background, silent features,Problems, efforts of government etc. The implementation of a comprehensive GST in India isexpected to lead to efficient allocation of factors of production thus leading to gains in GDPand exports. Though a number of initiatives by the various machineries at the Centre, thepresent taxation regime is marked as cumbersome, complicated and unfriendly. It is in thisperspective, the Central government has entrusted Dr.Vijay Kelkar, Chairman of 13thFinance Commission to suggest a rational, scientific and modern but unified system oftaxation in tune with developed nations form the base behind the introduction of Goods andService Tax (GST) in India.

A Research Paper on Study and Impact of Goods and Service Tax (GST) on Indian Tax Structure

This paper is an analysis of what the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario. The authors have stated with a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has be detailed discuss in this paper by the authors as the background, silent features and the impact of GST in the present tax scenario in India.

TAX MECHANISM OF BUDGET REVENUES FORMATION: THE CONCEPTUAL FOUNDATIONS OF THEORY AND MODERNIZATION TRENDS

Introduction. In Ukraine there is no fundamental theoretical and practical research of tax mechanism. The mechanism's great importance for both financial theory and practice together with the existence of deficiencies and problems determine the relevance of research topic. Purpose. Evaluation of theoretical and practical principles of tax mechanism, developing recommendations for its improvement. Results. The research shows the essence of tax mechanism and approaches to its treatment in the broad and narrow sense, particularly as a set of techniques and methods by which the government using taxes affects the socio-economic development, and as a mechanism to ensure the functioning of the tax system. It is noted that the structure of the tax mechanism has separate components, which are interconnected with each other, particularly subsystems, forms, methods, instruments, tools, incentives and sanctions. The work gives reasons for the assumption that the tax mechanism components, depending on the tasks set, instruments available, subjects and modus operandi, fall into two subsystems: the mechanism of tax collection by taxpayers and control mechanism to ensure the payment of taxes; the work also clarifies the nature of these mechanisms. The role of taxes in the distribution and redistribution of GDP is analyzed. It is concluded that the increase in the share of tax revenues to GDP and budget revenues indicates the state policy aimed at strengthening the centralization of GDP. It is recommended to form taxation system on a scientific basis by developed its strategy that would include determining the optimal proportions of distribution of GDP through taxes and the ratio between direct and indirect taxation, subjects and objects of taxation, state and local taxes and duties. The author offers modernization ways of tax mechanism of budget revenues formation, including: reform of the tax system on the basis of economic efficiency, social justice and political responsibility; formation of a new institutional taxation environment; changes in tax structure and their distribution between the links of the budget system; rationalization of tax incentives; adaptation of tax legislation to the EU; improving the efficiency of tax policies, improve the management of the tax system and mechanism of functioning of individual taxes; optimization of the tax base, simplifying the tax assessment and collection. Conclusion. Modernization of the tax mechanism is recommended to be implemented by determining tax policy strategy, optimizing distribution and redistribution of GDP through taxes, reforming the tax system, simplifying and structuring the system of taxation, and adapting tax legislation to the EU standards.

A Study on the Optimization of Tax Structure from the Perspective of Economic Growth

The institution supply is an important dimension of China's supply-side reform, in which the reform and optimization of tax system structure is an important measure to promote economic growth. This paper first reviewed the literatures about how the tax structure influences economic growth. Then, this paper used the reform of Chinese tax system as a starting point for the study, measured nearly 20 years of HP and HHI index to reflect the changes in tax structure, and analyzed the difference between the direct tax and the indirect tax on the economic growth. Finally, on the basis of the empirical conclusion of this paper, it put forward the corresponding policy suggestions.

Teaching the macroeconomic effects of tax cuts with a quasi-experiment

We design and conduct a classroom experiment that teaches students the complexities of income tax policy and its effect on the macroeconomy. We also receive insights into how students make labor supply and consumption decisions when the tax structure changes. With the experimental design, we collect data as well as anecdotal evidence to test if tax cuts affect labor supply and consumption decisions. We find that both temporary and permanent income tax cuts significantly induce higher labor supply and consumption decisions, but the labor response is temporary for both the temporary and permanent cuts while the consumption permanence depends on the permanence of the tax cuts. A follow-up discussion of student data ties up the classroom activity.

Changes in tax structures in European Union Member States

The European Union does not have a comprehensive common tax policy and substantial changes in this specialized policy area are not likely in the foreseeable future. Albeit common rules, requirements, minimum rates for certain tax types were implemented in the last few decades, they barely limit the Member States in using their tax policies as one of the worthiest elements of their arsenal in increasing competitiveness or quite the contrary, to undermining their own international competitiveness inadvertently through a misguided tax policy. In this article, we put the tax policies of the Visegrad Group and the Eurozone core countries (Germany, Austria and the Netherlands), as well as changes in these policies under the magnifying glass, in terms of the impact of tax structure changes on economic growth and employment in the last decade.

Price elasticity of tobacco products among economic classes in India, 2011–2012

ObjectivesThe objectives of this study are to: (1) examine the pattern of price elasticity of three major tobacco products (bidi, cigarette and leaf tobacco) by economic groups of population based...

Income redistribution and changes in inequality in New Zealand from 2007 to 2011: Alternative distributions and value judgements

This paper illustrates the effects of using different distributions and summary measures, using New Zealand data for the period 2007–2011. Using an annual accounting period, alternative welfare metrics and units of analysis are investigated. In addition, the sensitivity to assumptions about economies of scale within households is examined, and changes in inequality are decomposed into those arising from population and tax structure changes. When considering the period 2007–2010, all measures agree that inequality fell, although the extent of the reduction varies. For the period 2007–2011 (after the tax reforms of 2010) the answer to the question of whether inequality in New Zealand has risen or fallen depends crucially on the combination of welfare metric, income unit, adult equivalent scale and inequality measure used. In empirical studies, it is therefore important to explore a wide range of alternative approaches, providing information for readers to make their own judgements.

Assessment of the Impact of WAEMU Common External Tariff (CET) in Senegal

The adoption of the common external tariff (CET) by ECOWAS member countries is a further step towards the realization of the Customs Union and to the harmonization of trade programs. Senegal has joined the CET in 2000 to boost its trade with neighboring countries and the rest of the world. At the WAEMU level, the CET establishes a delicate equilibrium between member countries with divergent interests on certain products. However, it is criticized for being unable to provide sufficient protection to production branches and promote the emergence of a real community market. A key challenge of the ECOWAS-CET is to manage to reconcile the concerns of countries that require modifications in some elements of the WAEMU-CET. It is thus important to assess the implementation of the WAEMU-CET in Senegal, to bring out its strengths and weaknesses, in order to better tackle the negotiations on the ECOWAS-CET. The main objective of this study is to engage in such an exercise by focusing on the impact of the CET on public finance. In this paper, we examine the impact of recently implemented Common External Tariff (CET) by ECOWAS on the Senegalese economy. Using a partial equilibrium framework, we have undertaken simulations of CET application on key macroeconomic variables. Our results suggest very strong negative impact on fiscal revenue, inflation, but a dramatic change in tax structure, mainstreaming consumption taxes and VAT at the detriment of collected duties. Our conclusion calls for structural reforms beyond external tariff alignment in order to increase competitiveness and boost exports. A forecasting and simulation model has been developed to measure the impact of the CET on some key macroeconomic variables. Simulations show that a decrease in customs duty rate had a depressive effect on fiscal revenues. The estimated decline in fiscal revenues amounted to nearly CFA F 41 billion and 51.75 billion respectively in 2007 and 2013. However, overall, the positive effect of VAT and consumption taxes outweighs the depressive effect of lower customs duties on fiscal revenues. Thus, the overall impact of the reforms on total fiscal revenues is positive and amounts to 63.78 billion in 2007 and is expected to rise to 79.9 billion in 2013. Regarding price simulations, the findings show that the increase of indirect taxation subsequent to WAEMU reforms led to inflation. Compared to the baseline (unchanged fiscal legislation), consumer price indices and the manufacturing sector price indices grew faster. This upward effect increased over time. In terms of consumer prices, the estimated gap amounted to 5.70% in 2002, 5.71% in 2007 and 6.92% in 2013. Regarding prices of manufacturing sector, the differences are more important because they amounted to 6.09% in 2002, 6.19% in 2007 and 6.56% in 2013. While the introduction of the CET has led to a change in the structure of fiscal revenues, it also allowed the realization of fiscal and customs translation in favor of the share of taxes in total fiscal revenues. For a better balance among economic, financial and social functions of taxes on Senegalese economy, the following two recommendations are made: a) improvement of collection performance of direct taxes through a series of actions (increase of human and material resources of fiscal administration, increase of the taxable base through tax compliance promotion strategy that should be especially through improving the quality of public service and the gradual formalization of the informal sector); b) the use of other trade policy instruments (non-tariff measures such as standards, strengthening of the repressive arsenal against fraud, counterfeiting and piracy) to safeguard the national economy.

CAMBIOS EN LA ESTRUCTURA DE LAS RENTAS PÚBLICAS DE YUCATÁN, 1850-1902

RESUMENEl artículo analiza los cambios en la estructura tributaria de Yucatán, México, durante la transición del régimen colonial a la fiscalidad liberal, de 1850 a 1902. Caracteriza sus etapas en función de la composición y el protagonismo alternativo de los impuestos directos y los impuestos indirectos en las rentas públicas. Durante los profundos cambios en la estructura económica, la tributación indirecta al consumo y los impuestos directos sobre los sectores secundario y terciario protegieron el crecimiento del sector productivo del henequén (1869-1882). Finalmente, el impuesto sobre el henequén no sustituyó a los ingresos indirectos. La modernización fiscal (1896-1902) equilibró la tributación directa de producto con los aplicados a sectores más urbanos, el secundario y las ventas del sector mercantil.

Tax Structures, Economic Growth And Development

This paper investigates the relationship between tax structures and economic growth in a panel of developed and developing countries. In order to raise revenue, low-income countries have historically relied more heavily on international trade taxes, whilst richer nations employ comparatively more consumption and income taxes. Using the new Government Revenue Dataset (GRD) from the International Centre for Tax and Development (ICTD), we consider the effects of revenue-neutral changes in tax structure on economic growth for a panel of over 100 countries with data covering the period 1980-2010. Results from the Common Correlated Effects Mean Group (CMG) estimator (Pesaran 2006) find that increases in income taxes (specifically personal income taxes) offset by reductions in trade or consumption taxes have had a negative impact on GDP growth rates. We also highlight the fact that trade liberalisation has not had any discernible positive effects on economic growth. Revenue-neutral increases in personal income taxes are found to be particularly harmful in middle- and low-income countries. Taken alongside the results of, for example, Baunsgaard and Keen (2010), this is a reminder of the difficulties of tax reform for developing countries.

Estonian Tax Structure

The paper analyses Estonian tax structure changes during the last decade and critically assesses the current situation. The country’s tax mix is rather unique among EU countries – it has one of the highest proportions of consumption taxes in total taxes and the lowest level of capital and profit taxes. Such an unbalanced tax structure creates risks for public finances, limits revenue collection and distorts the business environment.