Bailout policies will raise Greek taxpayer's burden

2016 ◽  
Keyword(s):  
Income Tax ◽  
Small Firms ◽  
Property Tax ◽  
Tax Burden ◽  
Tax Rates ◽  
Content Type ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Indirect Taxes ◽  
Business Tax

Significance Tax arrears are expected to rise to 95 billion euros (106 billion dollars) by year-end following the introduction of new taxes. An ever-rising tax burden is encouraging evasion while discouraging investment, which prefers a tax regime that is both low and predictable. Impacts Nearly 70% of taxpayers may not meet their obligations in full this year, according to the Athens Chamber of Commerce and Industry. A 3-percentage-point increase in the basic rate of business tax will hit small firms in particular. Individuals face not only higher income tax rates but a plethora of new indirect taxes and increases in property tax. Evasion will increase the sense that austerity weighs more on some than others, making the policy politically less sustainable.

scholarly journals The Influence of Corporate Income Taxes on Investment Location: Evidence from Corporate Headquarters Relocations

2021 ◽  
Author(s):  
Travis Chow ◽  
Sterling Huang ◽  
Kenneth J. Klassen ◽  
Jeffrey Ng
Keyword(s):  
Income Tax ◽  
Strong Support ◽  
The State ◽  
Economic Consequences ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
Tax Rate ◽  
Percentage Point Increase ◽  
Point Increase ◽  
State Income

This study examines the effects of jurisdictions’ corporate taxes and other policies on firms’ headquarters (HQ) location decisions. Using changes in state corporate income tax rates across time and states as the setting, we find that a one-percentage-point increase in the HQ state corporate income tax rate increases the likelihood of firms relocating their HQ out of the state by 16.8%, and an equivalent decrease in the HQ state rate decreases the likelihood of HQ relocations by 9.1%. Exploiting the unique tax policy features within the state apportionment system lends strong support to the interpretation that taxation drives this effect. Our analyses also demonstrate that state income tax features affect the destination of the HQ move. We contribute to the literature on corporate decision making by showing how state income taxation affects a real corporate decision that has significant economic consequences for the company and the state. This paper was accepted by Brian Bushee, accounting.

scholarly journals Land value is a progressive and efficient property tax base: Evidence from Victoria

2019 ◽  
Author(s):  
Cameron Murray ◽  
Jesse Hermans
Keyword(s):  
Capital Investment ◽  
Property Tax ◽  
Property Taxes ◽  
Tax Rates ◽  
Land Value ◽  
Property Value ◽  
City Governments ◽  
Tax Base ◽  
Percentage Point Increase ◽  
Point Increase

Property taxes are a common revenue source for city governments. There are two property tax bases available—land value (site value, SV), or total property value (capital improved value, CIV). The choice of property tax base has implications for both the distribution and efficiency of the tax. We provide new evidence in favour of SV being both the more progressive and efficient property tax base. First, we use three Victorian datasets at different levels of geographic aggregation to model the SV-CIV ratio as a function of various household income measures. At all three levels, a higher SV-CIV ratio occurs in areas with higher incomes, implying that SV is the more progressive property tax base. Our range of results suggests that a one percent increase in the income of an area is associated with a 0.10 to 0.57 percentage point increase in the SV-CIV ratio. Second, we use historical council data to conduct a difference-in-difference analysis to compare the effect of switching from a CIV to SV tax base on the number of building approvals and value of construction investment. We find that switching from CIV to SV as a property tax base is associated with a 20% increase in the value of new residential construction. This is consistent with the view that changes to land value tax rates are non-neutral with respect to the timing of capital investment on vacant and under-utilised land, which we also demonstrate theoretically.

Taxation in a mixed economy: the case of China

2017 ◽  
Vol 34 (1) ◽  
pp. 49-61 ◽  
Author(s):  
Davidson Sinclair ◽  
Larry Li
Keyword(s):  
Income Tax ◽  
Central Government ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
Government Ownership ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Content Type ◽  
Tax Rate ◽  
For Profit

Purpose The purpose of this paper is to investigate how Chinese firms’ ownership structure is related to their effective tax rate. The People’s Republic of China provides an interesting environment to examine the corporate income tax. Government has significant ownership stakes in the for-profit economy and state-owned enterprises (SOEs) are liable to the corporate income tax. This is very different to most other economies where SOE tends to dominate the not-for-profit economy and pays no corporate income tax. Government ownership also varies between the central government and local government in addition to state asset management bureaus. This provides a rich institutional background to examining the corporate income tax. Design/methodology/approach A panel data analysis approach is used to examine relationship between ownership structure and effective tax rates of all public firms in China from 1999 to 2009. Findings The authors report that effective tax rates do appear to vary across the ownership types, but that SOEs pay a statistically higher effective tax rate than to non-state-owned. In addition, local government owned SOE pay higher effective tax rates than central government and SAMB owned SOE. The authors also investigate Zimmerman’s (1983) political cost hypothesis. Unfortunately, these results are econometrically fragile with the statistical significance of those results varying by empirical technique. Originality/value This paper provides insight into government ownership and taxation in China.

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.

On the effectiveness of state tax and expenditure policies to encourage entrepreneurship

2019 ◽  
Vol 8 (4) ◽  
pp. 523-548
Author(s):  
Donald Bruce ◽  
Elizabeth A. Glass ◽  
Matthew C. Harris
Keyword(s):  
Small Firms ◽  
Statistical Significance ◽  
Entrepreneurial Activity ◽  
Empirical Literature ◽  
Tax Rates ◽  
Content Type ◽  
Entrepreneurial Performance ◽  
Self Employment ◽  
State Tax ◽  
Employment Rates

Purpose The purpose of this paper is to expand the empirical literature on state tax and expenditure policies and entrepreneurial activity in several meaningful ways. Design/methodology/approach The authors update the panel data to include several more recent years and also consider other elements of state policy. Findings The most important takeaway is that even after dealing with some of the known shortcomings of dynamic panel analysis, we are still not able to find economically meaningful impacts of state tax and expenditure policies (generally defined) on entrepreneurial performance. Research limitations/implications Earlier studies that have found statistical significance have generally been limited to extensive-margin impacts on such things as self-employment rates or counts of new or small firms. When the authors examine what policy makers actually care about – things like income and employment among entrepreneurial ventures – the authors do not find much in the way of useful policy impacts. Practical implications To be sure, the authors find entrepreneurial performance to be statistically significantly related to certain tax rates and expenditure amounts, but the magnitudes of our estimated results cast serious doubts on the usefulness of these particular policy levers for generating meaningful improvements in entrepreneurial success. Originality/value The authors’ primary contribution is to improve the empirical consideration of the time series properties of the data. The authors provide a battery of more general and robust analyses to more completely surround the question.

How does the estate tax affect the number of firms?

2014 ◽  
Vol 3 (1) ◽  
pp. 96-117 ◽  
Author(s):  
Pavel A. Yakovlev ◽  
Antony Davies
Keyword(s):  
Small Firms ◽  
State Level ◽  
Small Business Owners ◽  
Tax Burden ◽  
Estate Tax ◽  
Content Type ◽  
The Usa ◽  
The Rich ◽  
The Impact ◽  
Number Of Firms

Purpose – The purpose of this paper is to estimate the effect of the combined (Federal and state) estate, inheritance, and gift (EIG) tax burden per decedent on the number of firms in the USA. Design/methodology/approach – Estimates are based on a longitudinal panel of 50 American states from 1988 to 2006. Findings – The paper finds that the growth in the EIG tax burden per decedent significantly reduces the growth in the number of firms, especially small firms. The higher dissolution rate among small firms can be attributed to the asymmetric liquidity effect, which limits the ability of small business owners to raise the funds needed to pay the estate tax without liquidating their estates. Practical implications – The estimates suggest that the reductions in EIG taxes, brought about by the passage of 2001 EGTRRA, have lead to a higher growth in the number of firms, ceteris paribus. Social implications – As of this writing, the future of the Federal estate tax looks uncertain. Policymakers should note that the estate tax lowers competition and economic growth, which hurts both the poor and the rich. Originality/value – This study is the first to examine the impact of the combined (Federal and state) EIG tax burden on the number of firms using state-level panel data.

Taxes alone will not close the wealth gap in Africa

2016 ◽  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Rates ◽  
African Countries ◽  
Content Type ◽  
The Past ◽  
Revenue Sources ◽  
Low Incomes ◽  
Political Patronage ◽  
Per Capita

Subject Taxation effects on inequality in Africa. Significance Economic inequalities in African countries have failed to decline significantly despite gradual growth in per capita GDP over the past several years. Progressive taxation is weak in many countries, but improving this source of revenue alone will not close the inequality gap for some of the world's poorest. Impacts Political patronage and fear of elite emigration will discourage politicians from proposing progressive taxes. If introduced, higher taxes would only reduce inequality if collected transparently and invested in services for those with low incomes. Low income tax rates will limit revenue flows to fund major infrastructure projects, especially if other revenue sources are depressed.

Bet on Canada's spending poses risks for Trudeau

2016 ◽  
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Prime Minister ◽  
Commodity Prices ◽  
Tax Rates ◽  
Tax Havens ◽  
Content Type ◽  
Conservative Government ◽  
Business Tax ◽  
Fiscal Austerity

Significance It includes large federal stimulus spending to spur economic growth and to alleviate the worst impacts of the collapse in global commodity prices, particularly oil. The budget represents a break on the part of Prime Minister Justin Trudeau with the prevailing orthodoxy around fiscal austerity and reliance on central bank monetary policy to support growth. Impacts Small business tax rates remain unchanged from levels set by the previous Conservative government. Troubled Quebec aerospace firm Bombardier may receive a federal bailout. Post-election leadership questions surrounding the Conservatives and NDP provide Trudeau with a weakened opposition for the time being. Ambitious federal projections of revenues recovered from tax havens and arrears are unlikely to be realised.

Chapter I. The Home Economy

1979 ◽  
Vol 89 ◽  
pp. 11-23
Keyword(s):  
Rapid Growth ◽  
Income Tax ◽  
Public Expenditure ◽  
The Other ◽  
Domestic Economy ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Short Term ◽  
Indirect Taxes

Our view of the short-term prospects for the domestic economy has worsened markedly since May. This is only in part because of the Budget of 12 June: indeed it is important to bear in mind, if comparisons are made with the May forecasts, that we had allowed for public expenditure cuts for 1979/80 on the scale which has now been announced and we also built in the indexation of both personal tax allowances and specific indirect taxes and duties. Thus, so far as the change in the outlook for the current financial year is concerned, the Budget effects are broadly limited to the move to a uniform VAT rate of 15 per cent together with the cuts in personal income tax rates. For 1980/81, we have reduced our public expenditure volume forecast substantially from the figures given in May. The other major factor tending to alter the outlook was the unexpectedly rapid growth this year of imports.

scholarly journals Tax subsidies for entrepreneurs in case of property tax

2020 ◽  
Vol 19 (3) ◽  
pp. 161-171
Author(s):  
Edyta Jóźwiak
Keyword(s):  
Real Estate ◽  
Income Tax ◽  
Property Tax ◽  
Tax Law ◽  
Tax Rates ◽  
The European Union ◽  
Personal Income Tax ◽  
Free Competition ◽  
Tax Subsidies ◽  
Real Estate Tax

In Polish tax law, real estate is subject to taxation. Property tax rates depend not only on the type of property but also on the taxable person. Thus, as far as persons conducting business activity are concerned, real estate in their possession is taxed at a higher rate than that of natural persons. The amount of the tax payable annually may exceed the income of the trader concerned, since it does not depend on the taxable person's financial situation (as is the case with other taxes, e.g. personal income tax). Due to this fact, a catalog of tax reliefs and exemptions, i.e. the so-called tax subsidies, as well as the possibility of spreading the tax in instalments and deferring its payment date is an important role in real estate tax. The state, including municipalities, may create this form of aid, as long as it does not conflict with the provisions of the Act on State Aid and similar provisions in force in the European Union, which are designed to observe free competition in the market. The purpose of this Article is to indicate what are the current forms of assistance to entrepreneurs on the example of property tax.

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