No basic tax allowance results in tax rates for low incomes close to the OECD average

2021 ◽  
Keyword(s):  
Tax Rates ◽  
Tax Allowance ◽  
Low Incomes

scholarly journals PROBABILITY MODEL OF POVERTY CALCULATION SUBJECT TO DIFFERENT FORMS OF INCOME TAXATION

2020 ◽  
Vol 2020 (4) ◽  
pp. 101-111
Author(s):  
Andrej Vyacheslavovich Mikheev
Keyword(s):  
Income Tax ◽  
Probability Model ◽  
Single Stage ◽  
Income Taxation ◽  
Tax Rates ◽  
Total Income ◽  
Tax Rate ◽  
Low Incomes ◽  
The Russian Federation ◽  
Tax Systems

The article highlights a probabilistic model constructed for calculating the number of poor and the total income tax levied on all taxpayers under different income tax systems. There is considered the proportional income tax system adopted in the Russian Federation, as well as single-stage systems with both fixed and variable tax rates, in which individuals with low incomes are exempted from income tax. For these tax systems there have been found the dependences of the expected value of the number of the poor and the total income tax on the tax rate, tax-free minimum, and also on the laws of probabilities distribution of total income and the living wage of an individual. A numerical simulation of the found dependences was carried out. The conditions under which the abolition of income tax for individuals with low incomes reduces the number of poor were determined. Mathematical criteria are formulated with the help of which it is possible to assess the feasibility of moving from a proportional system to single-stage income tax systems.

Welfarism, Libertarianism, and Fairness in the Economic Approach to Taxation

Taxation ◽  
2018 ◽  
pp. 37-59 ◽  
Author(s):  
Marc Fleurbaey
Keyword(s):  
Income Taxation ◽  
Fair Allocation ◽  
Tax Rates ◽  
Economic Approach ◽  
Skilled Workers ◽  
Absolute Priority ◽  
Optimal Tax ◽  
Low Incomes ◽  
Utilitarian Approach ◽  
Selection Of

The economic theory of income taxation has recently been eager to apply philosophically prominent approaches to the selection of the optimal tax on earnings. This chapter presents and compares the consequentialist–utilitarian approach to taxation developed by Mirrlees and defended by Murphy and Nagel, to the fair allocation approach, as adapted to taxation problems by Fleurbaey and Maniquet. The fairness approach does retain an element of libertarianism and gives some value to market earnings. The two approaches have different recommendations for taxation, especially regarding low incomes, which are given absolute priority under the fairness approach, and may be submitted to lower tax rates out of respect for the diversity of preferences among the least skilled workers.

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.

The mechanism of personal income taxation and its prospects in Ukraine

2021 ◽  
Vol 92 (1) ◽  
pp. 33-42
Author(s):  
Yaroslav Yarema
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Budget ◽  
Low Incomes ◽  
The Impact ◽  
Personal Income Taxation ◽  
Current Mechanism

The article analyses the current mechanism of personal income taxation in Ukraine, examining the impact of its individual elements on total revenues from personal income tax. The analysis of revenue contributions from personal income taxation to the consolidated state budget and local budgets indicates that the personal income tax remains the most important sources of revenue. In the structure of personal income tax revenues, wages are the main source of taxable income. The author analyses the mechanism of taxation for natural persons (businessmen) and tax receipts flowing to local budgets from incomes from business activity and highlights its shortcomings. In this context, he proposes introducing progressive tax rates, which will make it possible to shift the tax burden from individuals with low incomes to those who earn higher incomes.

Top Income Shares and the Difficulties of Using Tax Data

2020 ◽  
pp. 125-152
Author(s):  
Gerald Auten ◽  
David Splinter
Keyword(s):  
Tax Rates ◽  
Social Changes ◽  
Tax Reforms ◽  
Effective Tax Rates ◽  
Tax System ◽  
Low Incomes ◽  
Top Income Shares ◽  
Tax Returns ◽  
Per Capita ◽  
Over Time

This chapter reconsiders income methods of estimating of inequality using US tax data. It presents a new approach that accounts for the effects of important social changes, tax reforms, technical tax issues, and the 40 percent of income missing from tax returns. Results suggest much smaller increases in top 1 percent shares of pre-tax income. After accounting for taxes and transfers, top 1 percent shares changed little since 1962. This resulted from substantial increases in transfers and increased overall progressivity of the tax system. While effective tax rates for the top 1 percent show little trend, they declined for the bottom 50 percent. Rather than stagnating, per capita real incomes of the bottom half of the population increased over time. Rather than increasing and capturing most economic growth, incomes of those starting at the top decreased while those starting with low incomes received most of the growth.

scholarly journals Measuring Financial Impacts of the Renewable Energy Based Fiscal Policy in Colombia under Electricity Price Uncertainty

2021 ◽  
Vol 13 (4) ◽  
pp. 2010
Author(s):  
Alejandro Castillo-Ramírez ◽  
Diego Mejía-Giraldo
Keyword(s):  
Renewable Energy ◽  
High Capacity ◽  
Point Of View ◽  
Tax Rates ◽  
Hydro Power ◽  
Tax Allowance ◽  
Energy Projects ◽  
Generation Company ◽  
Error Terms ◽  
Financial Impacts

This paper analyses the financial implications, from the point of view of an investor in renewable energy, which sells the energy for an uncertain price of electricity and decides to take advantage of the Colombian tax policy over the renewable energy. The policy, known as Investment Tax Allowance (ITA), encourages installation of renewable projects in a country traditionally dominated by hydro power. Price is modeled as a non-stationary autoregressive stochastic process with normally distributed error terms. Costs, and uncertain revenue and taxes are considered to assess the financial impact on a solar project when the policy is implemented. Since impact varies according to project ownership, two cases are evaluated: a generation company (GENCO-1) that only owns the solar project; and, an existent generation company (GENCO-2) that owns a portfolio of projects. Results indicate that if ITA is applied, it is likely that the GENCO-1 cannot take the full advantage of the incentive, as opposed to the GENCO-2. Although this policy might not satisfy planner objectives since it does not guarantee the construction of significantly high capacity of new renewable energy projects, it definitely represents an attractive mechanism to decrease tax obligations at the GENCO-2 level. Finally, a theoretical analysis shows that investment cost affects the mean of the present value; whereas tax rates impacts both its mean and standard deviation.

Optimal Income Taxation with Present Bias

2020 ◽  
Vol 12 (4) ◽  
pp. 298-327
Author(s):  
Benjamin B. Lockwood
Keyword(s):  
Income Tax ◽  
Tax Rates ◽  
Optimal Income Taxation ◽  
Earned Income ◽  
Present Bias ◽  
Optimal Tax ◽  
Multiple Dimensions ◽  
Low Incomes ◽  
Marginal Tax Rates ◽  
The Face

Work often entails up-front effort costs in exchange for delayed benefits, and mounting evidence documents present bias over effort in the face of such delays. This paper studies the implications for the optimal income tax. Optimal tax rates are computed for present-biased workers who choose multiple dimensions of labor effort, some of which occur prior to compensation. Present bias reduces optimal tax rates, with a larger effect when the elasticity of taxable income is high. Optimal marginal tax rates may be negative at low incomes, providing an alternative, corrective rationale for work subsidies like the Earned Income Tax Credit. (JEL D91, H21, H24)

scholarly journals TAXATION SYSTEM: A COMPARISON BETWEEN THAILAND AND THE PHILIPPINES

2020 ◽  
Vol 5 (10) ◽  
pp. 154-158
Author(s):  
Rattana Pinthong ◽  
Paiboon Pajongwong ◽  
Thamrongsak Svetalekth
Keyword(s):  
Economic Growth ◽  
The Philippines ◽  
Tax Rates ◽  
Tax System ◽  
Tax Rate ◽  
System A ◽  
Tax Allowance ◽  
Tax Benefits ◽  
The Difference ◽  
Taxation System

The purpose of this research to study of taxation system, taxpayers, taxation agencies, tax rates, penalties, term and conditions of tax privileges and comparative analysis of taxation systems between Thailand and Philippines. The findings of tax system comparison were the difference of tax collection organization between Thailand and Philippines, however, both countries have the same tax system that are tax baskets, tax regulations, tax benefits. From these findings can be concluded that taxpayers or entity in Thailand has more advantage than Philippines’s in tax allowance regulations, personal tax income allowance favoured to taxpayers for lower tax rate. Moreover, the tax rate in Thailand is lower than in Philippines resulting to proprietors or investors could bring these proceeds to expand their business or investment, finally, it will generate economic growth.

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