scholarly journals One Markup to Rule Them All: Taxation by Liquor Pricing Regulation

2020 ◽  
Vol 12 (1) ◽  
pp. 1-41 ◽  
Author(s):  
Eugenio J. Miravete ◽  
Katja Seim ◽  
Jeff Thurk
Keyword(s):  
Market Power ◽  
Low Income ◽  
Tax Policy ◽  
Preference Heterogeneity ◽  
Tax Rates ◽  
Product Positioning ◽  
Commodity Taxation ◽  
Product Demand ◽  
Demand Elasticities ◽  
Alcohol Laws

Commodity taxation often involves uniform tax rates. We use alcohol laws that tax differentiated spirits with a comprehensive uniform markup to evaluate redistribution generated by such simple tax policy. We document preference heterogeneity among consumers, variation in product demand elasticities, and market power among producers with heterogeneous product portfolios. Relative to more flexible product-level markups recognizing demand heterogeneity and strategic price responses of firms, we find that the uniform markup underprices less elastic spirits, implicitly subsidizing low-income and less educated residents. The uniform markup grants additional market power to small specialized firms whose product positioning benefits from the policy.(JEL D12, H21, H23, H25, L43, L66)

scholarly journals Efficient Child Care Subsidies

2020 ◽  
Vol 110 (1) ◽  
pp. 162-199 ◽  
Author(s):  
Christine Ho ◽  
Nicola Pavoni
Keyword(s):  
Child Care ◽  
Low Income ◽  
The United States ◽  
Tax Rates ◽  
Child Care Subsidies ◽  
Optimal Program ◽  
The Us ◽  
Marginal Tax Rates ◽  
Welfare Problem ◽  
Care Costs

We study the design of child care subsidies in an optimal welfare problem with heterogeneous private market productivities. The optimal subsidy schedule is qualitatively similar to the existing US scheme. Efficiency mandates a subsidy on formal child care costs, with higher subsidies paid to lower income earners and a kink as a function of child care expenditure. Marginal labor income tax rates are set lower than the labor wedges, with the potential to generate negative marginal tax rates. We calibrate our simple model to features of the US labor market and focus on single mothers with children aged below 6. The optimal program provides stronger participation but milder intensive margin incentives for low-income earners with subsidy rates starting very high and decreasing with income more steeply than those in the United States. (JEL D82, H21, H24, J13, J16, J32)

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

2018 ◽  
Vol 65 (01) ◽  
pp. 217-237 ◽  
Author(s):  
HALIT YANIKKAYA ◽  
TANER TURAN
Keyword(s):  
Low Income ◽  
Low Income Countries ◽  
Estimation Methods ◽  
Property Taxes ◽  
Tax Rates ◽  
Tax Structure ◽  
Tax Rate ◽  
Using Data ◽  
Positive Effect ◽  
Effect On Growth

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.

Tax Competition in Wilhelmine Germany and Its Implications for the European Union

1996 ◽  
Vol 48 (3) ◽  
pp. 324-357 ◽  
Author(s):  
Mark Hallerberg
Keyword(s):  
European Union ◽  
Tax Competition ◽  
Tax Policy ◽  
National Government ◽  
Common Denominator ◽  
Tax Rates ◽  
The European Union ◽  
Political Systems ◽  
Data Set ◽  
State Tax

The twenty-five German states from 1871 to 1914 present a useful data set for examining how increasing economic integration affects tax policy. After German unification the national government collapsed six currencies into one and liberalized preexisting restrictions on capital and labor mobility. In contrast, the empire did not directly interfere in the making of state tax policy; while states transferred certain indirect taxes to the central government, they maintained their own autonomous tax and political systems through World War I. This paper examines the extent to which tax competition forced the individual state tax systems to converge from 1871 to 1914. In spite of a diversity of political systems, tax competition did require states to harmonize their rates on mobile factors like capital and high income labor, but it did not affect tax rates on immobile factors. In states where the political system guaranteed agricultural dominance, taxes on land were reduced, while in states with more open systems, tax rates remained higher. One unexpected result is that tax rates on capital and income converged upward instead of downward. The most dominant state, Prussia, served as the lowest-common-denominator state, but pressure from the national government, especially to increase expenditures, forced all states to raise their tax rates. These results suggest possible ways for the European Union to avoid a forced downward convergence of member state tax rates on capital and mobile labor.

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.

scholarly journals Smoke Gets in Your Eyes: Cigarette Tax Salience and Regressivity

2013 ◽  
Vol 5 (1) ◽  
pp. 302-336 ◽  
Author(s):  
Jacob Goldin ◽  
Tatiana Homonoff
Keyword(s):  
Low Income ◽  
Time Variation ◽  
Sales Tax ◽  
Tax Rates ◽  
Income Differences ◽  
Cigarette Taxes ◽  
Commodity Taxes ◽  
Cigarette Tax ◽  
Low Income Consumers ◽  
Posted Price

Recent evidence suggests consumers pay less attention to commodity taxes levied at the register than to taxes included in a good's posted price. If this attention gap is larger for high-income consumers than for low-income consumers, policymakers can manipulate a tax's regressivity by altering the fraction of the tax imposed at the register. We investigate income differences in attentiveness to cigarette taxes, exploiting state and time variation in cigarette excise and sales tax rates. Whereas all consumers respond to taxes that appear in cigarettes' posted price, our results suggest that only low-income consumers respond to taxes levied at the register. (JEL D12, H22, H25, H71, L66)

Providing for the Public Good: Corporate–Community Relations in the Era of the Receding Welfare State

2008 ◽  
Vol 7 (2) ◽  
pp. 113-139 ◽  
Author(s):  
Doug Guthrie ◽  
Michael McQuarrie
Keyword(s):  
Low Income ◽  
Corporate Philanthropy ◽  
Community Relations ◽  
Tax Rates ◽  
Institutional Conditions ◽  
Corporate Giving ◽  
The Social ◽  
Community Ties ◽  
Nationally Representative ◽  
Corporate Community

In his pioneering research on corporate–community ties in Minneapolis–St. Paul, Galaskiewicz (1985a) examined the social conditions that guided corporate philanthropy in a given metropolitan area. Two conditions, however, suggest the need for revisiting the type of research taken on in that original study. First, Galaskiewicz's study lacked a comparative dimension for examining the institutional environments that drive variation across localities. Second, a great deal has changed in the institutional conditions that drive corporate ties to their communities since the 1980s and early 1990s, the most important institutional change coming from the Tax Reform Act of 1986 . We identify two significant factors that contribute to variation in local philanthropic commitments of corporations to the metropolitan communities in which they are headquartered. First, local corporate tax rates increase corporate giving overall, but they drive down corporate commitments to their localities. Second, the local state's involvement in the Low–Income Housing Tax Credit (LIHTC) program of 1986 also drives down local corporate giving. Thus, activist states that are successful in capturing the fiscal resources of corporations through a variety of institutional mechanisms end up driving down the philanthropic commitments of the corporations that are headquartered in those localities. We illuminate these relationships through in–depth qualitative research in three case cities and data on a nationally representative sample of 2,776 corporations.

Agglomeration, Tax Differentials, and the Mobility of Professional Athletes

2016 ◽  
Vol 45 (2) ◽  
pp. 283-302 ◽  
Author(s):  
Grant A. Driessen ◽  
Steven M. Sheffrin
Keyword(s):  
Tax Policy ◽  
Residential Location ◽  
Professional Athletes ◽  
Location Decisions ◽  
Tax Rates ◽  
Limit States ◽  
Residential Patterns ◽  
Agglomeration Effects ◽  
Residential Location Decisions ◽  
Different Levels

Interstate mobility may limit states’ ability to choose their desired tax policies. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Moreover, mobility and agglomeration effects are not uniform for all individuals within a state and may vary significantly across different groups. We explore this heterogeneity by examining the residential location decisions of professional racecar drivers and golfers, which have similar industry characteristics but different levels of agglomeration. Consistent with our theory, we show that tax preferences are a powerful determinant of golfer residential patterns, while agglomeration mitigates much of this effect among racecar drivers. These findings highlight the need to better understand how competition and agglomeration interact when formulating tax policy.

scholarly journals SUPPORT FOR ENTREPRENEURSHIP DURING THE 2020 CRISIS: COMPARATIVE ANALYSIS OF FOREIGN AND KAZAKHSTAN PRACTICE

2021 ◽  
pp. 74-88
Author(s):  
Ksenia ZAGAL ◽  
Baltabay SYZDYKOV
Keyword(s):  
Comparative Analysis ◽  
Tax Policy ◽  
Tax Rates ◽  
Global Trends ◽  
Support Measures ◽  
Specific Support ◽  
Tax Deductions ◽  
Policy Measures ◽  
Tax Benefits ◽  
The Stability

The article examines the features of ensuring the stability of the business sector during the COVID-19 pandemic in Kazakhstan, OECD countries and other countries by analyzing the measures taken by their governments. A comparative analysis was conducted for global trends in the introduction of tax policy measures (cancellation / reduction of tax rates, the use of temporary / permanent tax deductions, benefits and loans, refundable tax benefits, etc.) and non-tax policy (provision of loans, subsidies for business expenses that are not related to with wages, various types of deferrals, and other industry-specific support measures).

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