When in Doubt, Tax More Progressively: Uncertainty and Progressive Income Taxation

2021 ◽  
Author(s):  
Minsu Chang ◽  
Chunzan Wu
Keyword(s):  
Income Taxation ◽  
Progressive Income Taxation

scholarly journals Adapting Income Taxation to the Labor Market Changes

2021 ◽  
Vol 31 (2) ◽  
pp. 167-178
Author(s):  
Anna Kireenko ◽  
Svetlana Sodnomova
Keyword(s):  
Labor Market ◽  
Income Taxation ◽  
Work Skills ◽  
Digital Platforms ◽  
Gig Economy ◽  
Tax Deductions ◽  
Data Statistics ◽  
Market Trends ◽  
Progressive Income Taxation ◽  
Market Changes

The article is concerned with the analysis of the labor market changes, requiring the personal income tax reform. Methods of comparative and statistical analysis are applied. Rating and analytical agencies data, statistics from the OECD, Eurofond and Eurostat used as the empirical base of the study. Three labor market trends requiring appropriate changes in taxation were identified. The first trend is the change in the demand for work skills, which requires a more flexible approach to educational tax deductions and tax incentives for training in high-demand digital professions. The second trend is digital platforms and the gig economy that enhance income differentiation, which inevitably raises the question of progressive income taxation. The third trend is an increase in non-standard employment. The article analyzes such forms of non-standard employment as work on the basis of vouchers, platform work, joint employment, casual labour which are associated with the ambiguous status of employment and require changes in tax policy to regulate them.

scholarly journals Progressive Income Taxation and Economic Growth with Endogenous Labor Supply and Public Good

2015 ◽  
Vol 3 (1) ◽  
pp. 238
Author(s):  
Wei Bin Zhang
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Labor Supply ◽  
Economic System ◽  
Income Taxation ◽  
Dynamic Interactions ◽  
Endogenous Labor Supply ◽  
And Gender ◽  
Endogenous Labor ◽  
Progressive Income Taxation

This study builds an economic growth model of gender division labor, endogenous labor supply with nonlinear progressive income taxation. The tax income is spent on supplying public goods. The economic system consists of one production sector and one public sector. The public sector is financially supported by tax incomes. The model describes dynamic interactions of growth and gender division of labor with progressive income taxation. We simulate the model to demonstrate existence of equilibrium and motion of the dynamic system. We also examine effects of changes in different parameters on the motion of the economic system.

scholarly journals Public Investment, Government Indebtedness and Transitional Dynamics

2018 ◽  
Vol 10 (2) ◽  
pp. 121-150
Author(s):  
Constantine Angyridis ◽  
Panagiotis Tsintzos
Keyword(s):  
Growth Models ◽  
Public Investment ◽  
Income Taxation ◽  
Fiscal Rules ◽  
Aggregate Fluctuations ◽  
Endogenous Growth Model ◽  
The Government ◽  
Progressive Income Taxation ◽  
Unstable Dynamics

This paper considers an endogenous growth model with public capital and government debt. In setting the level of public investment each period, the government is assumed to follow two commonly used in the growth literature fiscal rules: public investment is either equal to a constant fraction of output or equal to a constant share of tax revenues. In our model, we allow revenues to be raised by the government through progressive income taxation and bonds issue. For both fiscal rules, we show that the potential occurrence of either indeterminacy or instability crucially depends on whether the government is a debtor or a creditor. In particular, government indebtedness causes the economy to be prone to either belief-driven aggregate fluctuations or unstable dynamics. This is a novel result in the related literature which has largely overlooked the role of public debt as a possible contributing factor to the presence of indeterminacy and instability in growth models.

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