Estimating Both Supply and Demand Elasticities Using Variation in a Single Tax Rate

Econometrica ◽  
2018 ◽  
Vol 86 (2) ◽  
pp. 763-771 ◽  
Author(s):  
Floris T. Zoutman ◽  
Evelina Gavrilova ◽  
Arnt O. Hopland
Keyword(s):  
Supply And Demand ◽  
Tax Rate ◽  
Demand Elasticities ◽  
Single Tax

scholarly journals Victory Tax: A Holistic Income Tax System

Entropy ◽  
2021 ◽  
Vol 23 (11) ◽  
pp. 1492
Author(s):  
Donald J. Jacobs
Keyword(s):  
Income Tax ◽  
Free Market ◽  
Poverty Line ◽  
The United States ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate ◽  
Single Tax ◽  
Government Transfer ◽  
Log Normal

How can an income tax system be designed to exploit human nature and a free market to create a poverty free society, while balancing budgets without disproportional tax burdens? Such a tax system, with universal character, is deduced from the following guiding principles: (1) a single tax rate applies to all income types and levels; (2) the tax rate adjusts to satisfy budget projections; (3) government transfer only supplements the income of households with self-generated income below the poverty line; (4) deductions for basic living expenses, itemized investments and capital losses are allowed; (5) deductions cannot be applied to government transfer. A general framework emerges with three parameters that determine a minimum allowed tax deduction, a maximum allowed itemized deduction, and a maximum deduction defined by income percentage. An income distribution that mimics the United States, and a series of log-normal distributions are considered to quantitatively compare detailed characteristics of this tax system to progressive and flat tax systems. To minimize government dependency while maximizing after-tax income, the effective tax rate (ETR) as a function of income percentile takes the shape of the letter, V, inspiring the name victory tax, where the middle class has the lowest ETR.

scholarly journals Restructuring the European VAT tax system: advantages and disadvantages of the adoption of a single-rate model - a study based on the Portuguese case

2019 ◽  
Vol 8 (2) ◽  
pp. 145-160 ◽  
Author(s):  
Ricardo Moraes e Soares ◽  
João Ricardo Catarino
Keyword(s):  
Statistical Tests ◽  
Tax Compliance ◽  
Point Of View ◽  
Tax Rate ◽  
Eu Member States ◽  
Goods And Services ◽  
Advantages And Disadvantages ◽  
Single Tax ◽  
Efficient Data

The common VAT system adopted by EU member states comprises a set of various rates, which differentiate the goods and services subject to this tax. However, from a technical and management point of view, it would be preferable to adopt a single tax rate as it reduces distortions and facilitates tax compliance and management. This research seeks to analyse the benefits and disadvantages of adopting a single VAT as a means of simplifying the European VAT model. It takes Portugal as a case study. The main objective of this research is to contribute to the academic debate around the theme of the single rate of VAT versus differentiated rates, through the achievement of a series of analyses and statistical tests to revenues and percentages of GDP that they correspond, in the three scenarios considered in the study: differentiated rates, single rate of 17% and single rate of 21%.In the empirical part, hypotheses were developed, the effects on tax revenue of a differential collection system were analyzed and compared to a possible single rate regime on consumption to verify which one would be more efficient. data comparison permits to verify that the estimated revenue of the single rate of VAT is higher than the values ​​obtained by the system of differentiated rates, in any of the proposed models (17% or 21%). The results of this research are valid for all countries that adopt VAT or general tax transactions.

scholarly journals Estimation of Supply and Demand Elasticities for Major Crops Produced in Pakistan

2020 ◽  
Vol 25 (1) ◽  
pp. 139-152
Author(s):  
Saima Rani ◽  
David Vanzetti ◽  
Elizabeth Petersen ◽  
Muhammad Qasim
Keyword(s):  
Supply And Demand ◽  
Demand Systems ◽  
Demand Elasticities ◽  
Traditional Crops

Thisarticlestudiesthe supply and demand of major Pakistani crops. We estimatesupply elasticities usinga Nerlovian partialadjustment processanddemand elasticities usingthe Deaton and MuellbauerAlmost Ideal Demand Systems (AIDS). We usesecondary data from various Household IntegratedEconomicSurveysand Agricultural Statistics of Pakistan. Our estimated supplyelasticities with respect to price liebetween 0.1 and 0.5 for all crops. Pulses tend to have higher elasticities than traditional crops such as wheat and rice. Demand elasticities with respect to price tend to beinelastic, with the exception of poultry andfruit which appearto be luxury items. Pulses are income inelastic, implying that consumption may not rise significantly asper capita incomesand thatthe introduction of yield enhancing varietieswill lead to lower prices.

scholarly journals DIFERENSIASI TARIF PAJAK BUMI DAN BANGUNAN SEKTOR PERKEBUNAN, PERHUTANAN, DAN PERTAMBANGAN

2019 ◽  
Vol 2 (1) ◽  
pp. 17-22
Author(s):  
Adhipradana Prabu Swasito ◽  
Aang Aribawa
Keyword(s):  
Environmental Impact ◽  
Property Tax ◽  
Plantation Forestry ◽  
Rate Of Return ◽  
Weighting Method ◽  
Tax Rate ◽  
Single Tax ◽  
Simple Additive Weighting

Property tax rate differentiation has been widely used in many countries. Indonesia used a single tax rate for Land and Building Tax for Plantation, Forestry, Mining and Other Sectors (PBB P3L). This research adopts a Simple Additive Weighting Method to discuss property tax rate differentiation in Indonesia. We found that property tax rate differentiation can be formulated using particular criteria such as rate of return,  industries importance, and environmental impact. Diferensiasi tarif pajak properti berdasarkan jenis atau tujuan penggunaan properti sudah dilakukan di berbagai negara. Di Indonesia, berlaku tarif tunggal untuk Pajak Bumi dan Bangunan Perkebunan, Perhutanan, Pertambangan, dan Sektor Lainnya (PBB P3L). Tarif tersebut berlaku untuk setiap jenis properti yang menjadi objek pajak PBB P3L. Dengan menggunakan simple additive weighting method, penelitian ini menyimpulkan bahwa dengan menggunakan kriteria-kriteria tertentu seperti tingkat pengembalian usaha, tingkat kepentingan industri, dan tingkat dampak lingkungan,   dapat dilakukan diferensiasi tarif  pajak untuk PBB P3L.

Excise tax on fuel in the system of economic instruments for environmental protection

2021 ◽  
Vol 2021 (2) ◽  
pp. 113-126
Author(s):  
Vitalii OSTROVETSKY
Keyword(s):  
Diesel Fuel ◽  
Negative Impact ◽  
Supply And Demand ◽  
Oil Prices ◽  
Petroleum Products ◽  
International Travel ◽  
Tax Rates ◽  
Tax Rate ◽  
Excise Tax ◽  
The Eu

Energy-related CO2 emissions have reached record levels. Such negative trends require intensification of the use of various instruments, economic in particular, which will reduce the negative impact on the ecology , scientific and technological progress and population growth on the planet Earth. One of the most effective and easiest instruments to apply is the excise tax on fuel. In most EU countries, gasoline is subject to an excise tax at rates that are 20-25% higher than the tax rate on diesel fuel. A similar situation is observed in Ukraine. At the same time, it should be noted that excise tax rates in the EU are 3-4 times higher than the rates applied in Ukraine. The world markets are experiencing a collapse in oil prices, as well as gasoline and diesel fuel. The decline in demand is due to the economic consequences of the COVID-19 distribution flow policy. Domestic and international travel is reduced, business and other forms of socio-economic activity are transferred to remote work via the Internet. However, in Ukraine, retail fuel prices remain at the same level. Consequently, producers make profits by taking advantage of changing supply and demand in the relevant markets. Lower excise tax rates in Ukraine compared to the EU, as well as falling world oil prices provide grounds for a gradual increase in excise tax rates on gasoline and diesel fuel in Ukraine. Every 10 Euro increase in the tax rate, other things being equal, will attract UAH 500-600 million to the budget of additional income, increasing the sale price of fuel by 1%. To this end, it is advisable to develop a schedule of such increase, which should be agreed with the main payers of the excise tax on petroleum products (producers and importers), which should be approved in the form of a memorandum or special agreement

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