scholarly journals Public Goods, Hidden Income, and Tax Evasion: Some Nonstandard Results from the Warm-Glow Model

2014 ◽  
Author(s):  
Daniel Hungerman
Keyword(s):  
Public Goods ◽  
Tax Evasion ◽  
Warm Glow

EFFICIENCY OF THE TAX SYSTEM ON THE BASIS OF TRANSPARENCY AND REFORM

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 219-222
Author(s):  
Ludmila Oleinikova ◽  
Keyword(s):  
Public Goods ◽  
Tax Evasion ◽  
Small Businesses ◽  
National Level ◽  
Tax Base ◽  
Tax System ◽  
Tax Legislation ◽  
Improve Compliance ◽  
Factors Of Production ◽  
The Government

The expediency is reasoned of creating a competitive environment in the context of globalization and limited factors of production, forcing countries to compete with each other and take measures to attract owners of factors of production by forming the optimal combination of institutional, public goods and tax preferences, where only tax preferences are not the key to success in competition, as opposed to general conditions of taxation in combination with infrastructural, institutional and public goods. Emphasis is placed on the rapid digitalization of economic processes and the globalization of even small businesses through online platforms that will significantly affect the struggle in the field of economic and institutional competition. It has been proven that it is already necessary to respond to new challenges which are associated with tax evasion, erosion of the tax base, a significant geographical gap between the location of factors of production and the jurisdiction of profit. It is established that the answers to these risks lie both in the plane of institutional readiness and in the plane of the effectiveness of the application of tax administration tools, including control, as well as the synergy of measures at the macro and micro levels. The variety of tools used in world practice to improve compliance with tax legislation is studied and their division into categories is indicated. The expediency of using mechanisms to ensure the transparency of the tax system is substantiated, along with measures to assure the transparency of taxpayers before the tax authorities at the national level, as well as mechanisms to provide accountability and transparency of the tax authorities themselves to the government, parliament and taxpayers. It is proposed, taking into account foreign experience, in addition to quantitative indicators of tax effectiveness, to use supplementary indicators that characterize the work of tax authorities, considering economy, effectiveness, efficiency, which will deepen the level of tax system performance.

Vicious Circles and Multiple Equilibria: The Spiral

2018 ◽  
Author(s):  
Andrea Lorenzo Capussela
Keyword(s):  
Public Goods ◽  
Rule Of Law ◽  
Tax Evasion ◽  
Multiple Equilibria ◽  
Social Dilemmas ◽  
Coordination Games ◽  
Political Accountability ◽  
Main Argument ◽  
Private Goods ◽  
Weak Rule

This chapter summarizes the theoretical framework of this book, and draws from it the lens through which the roots of Italy’s current decline are then retraced in its history. It exemplifies the main argument by discussing two alternative reactions to the insufficient provision of public goods: an opportunistic one—employing tax evasion, corruption, and clientelism as means to appropriate private goods—and one based on enforcing political accountability. It argues that from the perspective of ordinary citizens and firms such social dilemmas can typically be modelled as coordination games, which have multiple equilibria. Self-interested rationality can thus lead to a spiral, in which several vicious circles run in parallel, reinforce each other, and lead society onto an inefficient equilibrium characterized by low political accountability and weak rule of law. It concludes that in transition societies ideas, freer from the grip of the spiral, can exploit endogenous shocks to reverse it.

Growth Effects of VAT Evasion and Enforcement

2018 ◽  
Vol 47 (3) ◽  
pp. 530-557 ◽  
Author(s):  
Chandler McClellan
Keyword(s):  
Economic Growth ◽  
Public Goods ◽  
Tax Evasion ◽  
Tax Revenue ◽  
Firm Level ◽  
Mixed Effect ◽  
Tax Enforcement ◽  
Revenue Collection ◽  
Level Data ◽  
Firm Level Data

Lower tax revenues have a theoretically mixed effect on growth as they create more disposable income for investment but simultaneously reduce funds for public goods. This study combines firm-level data on tax evasion and enforcement from seventy-nine countries with macroeconomic data to examine the effects of tax enforcement measures and tax revenue shortfall on economic growth. This study finds that while increased enforcement measures reduce growth, high tax revenue collection serves to increase growth. These results suggest that reforms focusing on increasing revenue without resorting to greater enforcement measures are desirable.

Does Taxation Influence Efficiency of Public Services Provision: Case of European Countries

2020 ◽  
pp. 152-158
Author(s):  
Igor F. Molotok
Keyword(s):  
Public Goods ◽  
Tax Evasion ◽  
Public Services ◽  
Social Protection ◽  
Local Community ◽  
Slovak Republic ◽  
Growth Dynamics ◽  
European Countries ◽  
Social Contributions ◽  
The Government

Public services are identified as services provided by the government of certain jurisdiction (country or local community) in order to ensure citizens’ welfare and social protection. The efficiency of public services provision depends on numerous economic, social, and institutional factors. In turn, numerous scientific debates are about the optimization of taxation in order to increase the efficiency of public goods provision. Therefore, the purpose of the research is to clarify empirically the cohesion between public services provision and taxation for the sample of European countries (Latvia, Lithuania, Estonia, Czech Republic, Germany, Slovak Republic, Hungary, Poland, Romania, Bulgaria, Slovenia, and Ukraine) for 2005-2018. Correlation analysis and panel data regression analysis results allow concluding that provision of public goods (safety, education, health care) highly dependent on social contributions and taxes on goods and services, and less on taxes on income, profits, and capital gains. Moreover, tax growth dynamics in chosen European countries is twice, triple or even five times more rapid than growth dynamics of all dependent variables (only government expenditures on education and social contributions annual growth rates are almost equal). Such a discrepancy might result in an increase of social tensions, shadow economy, intensification of tax avoidances and tax evasion processes, lack of population to government loyalty. All this proves the necessity of improvement of financial resources redistribution in order to improve the efficiency of public services provision. Keywords: budget, government expenditure, government efficiency, public goods, tax revenue.

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