Social democracy and the relative price of investment: left governments, indirect taxation and the division of corporate income in affluent democracies

2020 ◽  
Author(s):  
Jingjing Huo
Keyword(s):  
Social Democracy ◽  
Oecd Countries ◽  
Relative Price ◽  
Consumption Expenditure ◽  
Indirect Taxation ◽  
Labor Share ◽  
Indirect Taxes ◽  
Using Data ◽  
Investment Spending ◽  
Corporate Saving

Abstract While indirect taxes can fall on both consumption and investment spending, there has been little discussion on how governments may tax these two types of expenditure differentially. This article shows that the choice between taxing consumption and investment spending has important distributive implications for left governments as the traditional defenders of redistribution. In particular, when left governments increase taxes on investment relative to consumption expenditure, the higher price of investment relative to consumption goods drives up the labor share of corporate income, lowers corporate saving and reduces corporate net lending. Because this labor share strategy of redistribution is likely to antagonize capital, left governments tend to pursue it more intensely when corporatism has declined. I test these arguments using data across 12–14 Organisation for Economic Cooperation and Development (OECD) countries from the 1970s to 2010.

Preferences, Tax Structure and Tax Reform: Theory and Evidence

1975 ◽  
Vol 3 (1) ◽  
pp. 56-69 ◽  
Author(s):  
Shlomo Maital
Keyword(s):  
Tax Reform ◽  
Tax Structure ◽  
Indirect Taxation ◽  
Tax System ◽  
The Past ◽  
Pure Public Good ◽  
Indirect Taxes ◽  
Current Shift ◽  
Optimal Tax Structure ◽  
The U.S

When the structure of tax revenues–the proportion of revenues earned by income, consumption and wealth taxes–is treated as a pure public good, a useful framework emerges for analyzing interrelationships among taxpayers' preferences, tax structure and tax reform. The “optimal” tax structure is defined and used to outline several conjectures about the current shift from direct to indirect taxation, evident particularly in Europe. Attention is then focused on the U.S. tax system. The structure of the tax system is shown to have changed very little in the past two decades. In contrast, interview surveys carried out over the past thirty years indicated a long-standing shift in taxpayers' preferences toward indirect taxes. Implications are drawn regarding tax reform.

scholarly journals Czech Household Tax Burden Estimation

2018 ◽  
Vol 66 (6) ◽  
pp. 1557-1564
Author(s):  
Lukáš Moravec ◽  
Gabriela Kukalová ◽  
Jakub Ječmínek ◽  
Luboš Žáček
Keyword(s):  
Tax Burden ◽  
Median Income ◽  
Tax Rates ◽  
Indirect Taxation ◽  
Indirect Taxes

This paper solves the question of the Czech households’ tax burden and its trend during the period from 2005 to 2015. Authors identified three groups of model Czech households based on the Czech Statistical Office data. The consumer basket structures, the median income, direct and indirect taxes rates were the parameters covered by the analyses. The weighted VAT tax rates were calculated for the consumer basket items valid for the year 2015. The year 2015 was used as the reference one for the rest of the period. The results show the estimated cumulative tax burden including direct and indirect taxation in 2015 and the previous years. The paper identified the changes and the trend of taxation level relating the Czech households.

The Corporate Saving Glut and Falloff of Investment Spending in OECD Economies

2016 ◽  
Vol 64 (4) ◽  
pp. 777-799 ◽  
Author(s):  
Joseph W. Gruber ◽  
Steven B. Kamin
Keyword(s):  
Investment Spending ◽  
Corporate Saving

scholarly journals The Impact of Migrant Remittances on Economic Growth in Arab Countries

2019 ◽  
Vol 5 (2) ◽  
pp. 188
Author(s):  
Habib Ouni ◽  
Hela Miniaoui
Keyword(s):  
Economic Growth ◽  
Potential Role ◽  
Dynamic Panel Data ◽  
Arab Countries ◽  
Consumption Expenditure ◽  
Gulf Region ◽  
Dynamic Panel ◽  
Migrant Remittances ◽  
Using Data ◽  
The Impact

<p><em>The potential role that workers’ remittances are likely to play in promoting economic growth, especially in Arab countries, is currently attracting considerable attention. </em><em>These remittances have an impact on the remitting economies as well. </em><em>The Gulf region is considered one of the top sending countries of migrant remittances. In this study, empirical analysis is carried out with panel techniques using data over the last three decades for six Arab countries. Our results show that migrant remittances have a positive and significant impact on economic growth. This relationship is also significant when we use dynamic panel data. An indirect effect of remittances on economic growth is pointed out especially via the investment and the household final consumption expenditure channels. </em></p><p><em>Policymakers in Arab countries should take appropriate policy actions to increase the outflow of workers. Developed capital markets, as well as a sound macroeconomic policy environment, would provide incentives for sustainable remittances transfers.</em></p>

scholarly journals Indirect Taxation of Events Beyond the Control of the Taxpayer in Crucial Tax and Customs Judgements of the Court of Justice

2021 ◽  
Vol 27 ◽  
pp. 297-312
Author(s):  
Krzysztof Lasiński-Sulecki
Keyword(s):  
European Union ◽  
Economic Burden ◽  
The European Union ◽  
Indirect Taxation ◽  
European Union Law ◽  
Scientific Question ◽  
Goods And Services ◽  
Court Of Justice ◽  
Indirect Taxes ◽  
Excise Duties

Indirect taxes are shaped in such a way that the final customers bear their economic burden.  The scope of taxation is usually delineated to cover all goods (and services) reaching the afore-mentioned final consumers. One may assume that the aim of a lawmaker is that goods (or services) supplied to the consumers should not remain untaxed. However, the intensity of pursuing this aim differs between VAT, excise duties, and customs duties. A scientific question that the rules outlined above bring about is whether it is acceptable – under the general principles of the European Union law perceived through a number of tax (customs) cases – to impose duties on a person or to deprive a taxpayer of rights owing to tax-relevant facts that have been entirely out of the control of this person or this taxpayer (customs debtor). Although the position of the Court of Justice towards this issue is not homogenous, the author of this article claims that situations that are wholly beyond the scope of control of a diligent person should not affect the tax (customs) situation to the detriment of such a person.

scholarly journals El establecimiento de reglas de la Organización Mundial de Comercio sobre laayuda interna. Una evaluación del enfoque de la Ronda de Doha

2011 ◽  
Vol 5 (9) ◽  
pp. 3
Author(s):  
David Blandford
Keyword(s):  
Uruguay Round ◽  
Oecd Countries ◽  
Doha Round ◽  
Agricultural Policies ◽  
New Approach ◽  
Using Data ◽  
Domestic Support ◽  
Selection Of ◽  
Uruguay Round Agreement

<div data-canvas-width="513.466583333333">The elements of the approach to disciplining domestic support for agriculture in the Doha round of WTO negotiations are evaluated using data for a selection of OECD countries. Despite a substantial increase in complexity in comparison to the Uruguay Round Agreement, the new approach is unlikely to require real reductions in trade-distorting support. As a result it is unlikely to stimulate further reforms in domestic agricultural policies in OECD countries.</div>

scholarly journals What Explains the Decline of the U.S. Labor Share of Income? An Analysis of State and Industry Level Data

2017 ◽  
Vol 17 (167) ◽  
Author(s):  
Yasser Abdih ◽  
Stephan Danninger
Keyword(s):  
Task Characteristics ◽  
Trade Integration ◽  
Data Set ◽  
Labor Share ◽  
Level Data ◽  
Routine Tasks ◽  
Labor Institutions ◽  
Using Data ◽  
High Level ◽  
The U.S

The U.S. labor share of income has been on a secular downward trajectory since the beginning of the new millennium. Using data that are disaggregated across both state and industry, we show the decline in the labor share is broad-based but the extent of the fall varies greatly. Exploiting a new data set on the task characteristics of occupations, the U.S. input-output tables, and the Current Population Survey, we find that in addition to changes in labor institutions, technological change and different forms of trade integration lowered the labor share. In particular, the fall was largest, on average, in industries that saw: a high initial intensity of “routinizable” occupations; steep declines in unionization; a high level of competition from imports; and a high intensity of foreign input usage. Quantitatively, we find that the bulk of the effect comes from changes in technology that are linked to the automation of routine tasks, followed by trade globalization.

scholarly journals Public debt and economic growth: contemporary evidence from a developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sam Kris Hilton
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Granger Causality ◽  
Public Debt ◽  
Consumption Expenditure ◽  
Government Consumption ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Investment Spending

Purpose Considering the continuous rise in the public debt stock of developing countries (particularly Ghana) with the unstable economic growth rate for the past decades and the recent borrowing because of the impact of COVID 19, this paper aims to examine the causal relationships between public debt and economic growth over time. Design/methodology/approach The paper uses a dynamic multivariate autoregressive-distributed lag (ARDL)-based Granger-causality model to test the causal relationships between public debt and economic growth [gross domestic product (GDP)]. Annual time-series data that spanned 1978–2018 were sourced from the World Bank Development Indicator database and the IMF fiscal Affairs Department Database and WEO. Findings The results reveal that public debt has no causal relationship with GDP in the short-run but there is unidirectional Granger causality running from public debt to GDP in the long run. Again, investment spending has a negative bi-directional causal relationship with GDP in the short-run but they have a positive bi-directional causal relationship in the long run. Conversely, no short-run causal relationship exists between government consumption expenditure and GDP but long-run Granger causality runs from government consumption expenditure to GDP. Finally, public debt has a positive impact on the inflation rate in the short run. Practical implications The findings imply that government(s) must ensure high fiscal discipline to serve as a precursor for the effective and efficient use of recent borrowing, that is, the loans should be used for highly prioritized projects (preferably investment spending) that are well evaluated and self-sustained to add positively to the GDP. Originality/value This paper provides contemporary findings to augment extant literature on public debt and economic growth by using variables and empirical models, which prior studies could not sufficiently cover in a developing country perspective and affirms that public debt contributes to GDP only in the long run.

The relationship between price and quality in durable product categories with private label brands

2018 ◽  
Vol 27 (6) ◽  
pp. 647-660 ◽  
Author(s):  
Peter J. Boyle ◽  
Hyoshin Kim ◽  
E. Scott Lathrop
Keyword(s):  
Durable Goods ◽  
The Body ◽  
Relative Price ◽  
Private Label ◽  
Content Type ◽  
Product Categories ◽  
Durable Products ◽  
Brand Perception ◽  
Using Data ◽  
The Relationship

PurposeThis paper aims to investigate price and objective-quality in durable product categories containing national and private-label (PL) brands.Design/methodology/approachUsing data from consumer reports objective-test results of 14,476 durable products available in the US the authors identified product categories containing both national and PL brands; constructed relative price- and quality-indices for each category; calculated price and quality differentials for each category then modeled the relationship between them; estimated the price premium associated with national brands (NBs); and computed price–quality (PQ) correlations for each category. The authors also analyzed the same relationships using subjective brand-perception data collected from 240 consumers.FindingsOverall the price of NBs in durable products was substantially higher than the price of PL brands despite there being little to no difference in quality levels overall, with the proportion of categories having higher PL quality nearly equaling that of categories having superior NB quality. Correlation between price and quality was moderate. Accuracy of consumer perceptions varied depending on the importance of brand in the purchase decisions for particular product categories.Originality/valueThis paper uses a large objective dataset spanning a period of more than eight years to assess price and quality for durable goods in categories offering PL brands. It addresses an under-studied area, that of PL brands for higher-priced, longer-lasting products. The findings contribute to an existing understanding of PLs, especially in the domain of durable-goods, as well as to the body of research in the area of PQ relationships. It also adds to our understanding of consumers’ perceptions of brand as a factor in durable product decisions and how the market aligns with those perceptions.

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