The Minimum Cost of Living: its Concept and Measure

Social policy studies focusing on poverty reduction attempt to measure poverty reductions rates and poverty gaps, but they do not provide criteria to determine whether a given social policy is a success or failure. In this study, we suggest using regression discontinuity design to establish evaluation criteria and validate estimation results in social programs. Using the dataset from the Korean Welfare Panel, first we conduct, first, a difference-in-differences comparison between welfare recipients under the National Basic Livelihood Security system and nonrecipients whose income falls under the minimum cost of living. Secondly, we establish the counterfactual effects of the program among nonrecipients whose income is below the minimum cost of living and among nonrecipients whose income is above the minimum cost of living. Last, we analyze treatment effects by comparing welfare recipients with income below the minimum cost of living and nonrecipients with income above the minimum cost of living using the regression distribution design method. We argue that the National Basic Livelihood Security system as a welfare-to-work program has positive effects on labor market participation, which has not been established by previous studies.

Download Full-text

Asas Keadilan Pemungutan Pajak dalam Peraturan Pemerintah No 23 Tahun 2018 Tentang Pajak Penghasilan

Jurnal Preferensi Hukum ◽

10.22225/jph.2.1.3042.6-10 ◽

2021 ◽

Vol 2 (1) ◽

pp. 6-10

Author(s):

Made Dwi Surya Suasa ◽

I Made Arjaya ◽

I Putu Gede Seputra

Keyword(s):

Income Tax ◽

Government Regulation ◽

Minimum Cost ◽

Vertical Equity ◽

Cost Of Living ◽

Tax Collection ◽

Tax Revenues ◽

The Government

In mid-2018, the government issued new regulations in the field of taxation which is expected to be an increadible impact for tax revenues. The rules are set out in the Government Regulation Number 23 Year 2018 regarding Income Tax on Income Effort Received or Provided Taxpayers Who Have Specific Gross Distribution (Government Regulation Number 23 Year 2018). Various responses from the community came after the release of the Government Regulation. One is the aspect of fairness in the taxation of income that seems to be ruled out with the advent of the Government Regulation. The principle of fairness in income tax collection adheres to vertical equity, the higher the income (net) earned or received by the higher taxes that are owed. Vertical Justice not accommodated in the regulation is to make the basis for the calculation of gross turnover tax payable. As a result, taxpayers who have the same gross turnover is considered to have the same economic additional capabilities. Estuary of the principle of vertical equity is a theory that emphasizes the style bear minimum cost of living.

Download Full-text

The Minimum Cost of Living. Winifred Stuart Gibbs

Journal of Political Economy ◽

10.1086/253059 ◽

1917 ◽

Vol 25 (10) ◽

pp. 1059-1060

Keyword(s):

Minimum Cost ◽

Cost Of Living

Download Full-text

Introduction of the personal tax-free allowance in Russia and its budget implications

Journal of Tax Reform ◽

10.15826/jtr.2021.7.1.088 ◽

2021 ◽

Vol 7 (1) ◽

pp. 20-38

Author(s):

V. V. Gromov ◽

Keyword(s):

Low Income ◽

Income Tax ◽

Minimum Cost ◽

Personal Income ◽

Personal Income Tax ◽

Cost Of Living ◽

Tax Rate ◽

Tax Revenues ◽

Regional Product ◽

Personal Tax

The social problem of poverty can be mitigated by introduction of a personal tax-free allowance. In this paper the likely effects that a personal tax-free allowance will have on the Russian budget is investigated. It has been assumed that a tax-free allowance will hit regional budgets because they depend greatly on income tax revenue. The indicated effects were estimated by applying a personal tax-free allowance to the data on economic conditions in 2019. Rosstat data on population, poverty, wages and gross regional product and Federal Tax Service data on the number of taxpayers and personal income tax revenues were used. For the purpose of the paper, two scenarios were calculated. In the first scenario, a zero personal income tax rate is applied to wages below the minimum cost of living. We found that under this scenario the consolidated budget of Russia loses over 1 trillion rubles while regional tax revenues reduce by more than 10%. In the second scenario, citizens whose income is below the minimum cost of living are exempt from personal income tax. We found that under this scenario regional tax revenues would be reduced by 1-5%. In both cases the introduction of the personal tax-free allowance puts greater pressure on regions that critically depend on the personal income tax receipts. It was concluded that the negative effect of an introduction of a personal tax-free allowance would be greater, the greater the prevalence of low-income taxpayers in a region. Also considerable regional disparities create a risk that such tax reform will deepen regional inequality and be disruptive for the Russian budgetary system.

Download Full-text