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With a theoretical approach to tax incentives, direct taxes and their incidence on cooperatives, it was sought to identify the current Latin American legal systems for Income Tax. Especially, the norms that include the legal figures for the release of the tax are analyzed, verifying its scope, requirements and procedures for its application. It is based on the fact that the granting of incentives is based on the principle of tax equity and on the recognition of the countries about the benefits that they contribute to social and economic development. Therefore, the research is based on theoretical guidelines on incentives and equity for cooperatives. It is recognized that the region is heterogeneous but that it shares legal similarities, which makes it possible to contrast its regulations. For this reason, the comparative method was considered suitable. With this, the particularities of the normative systems of seventeen nations were understood, through the confrontation of their tax precepts, allowing the identification of their convergences and divergences. The results show that most of the countries integrate exemptions in the various legal devices and, to a lesser extent, countries that tax cooperatives with reduced rates or tariffs were distinguished. [ABSTRACT FROM AUTHOR]

This paper aims to evaluate and compare the distributive impact of the personal income tax (PIT) on individual's income in Brazil and China by measuring the Gini Index before and after this tax incidence. The paper also proposes a methodology for transposing the PIT backets from one country to another. The results show that a more progressive scheme implemented by China, with more brackets and higher rates, does not guarantee reduction of inequality, due to the level of income exemption and to the incomes on which the marginal rates affect. Thus, it can be perceived that the PIT brackets of these two countries deserves revisions if they seek to fulfill the distributive function. [ABSTRACT FROM AUTHOR]

Since the saving capacity has positive effects on growth and development, the discussions about the factors that can be used to change the saving rate are always up to date. Income and taxes are two important factors determining the saving and expenditures of both individuals and institutions. According to the life cycle model, saving is negative for young who do not work and for the retired. Therefore, the higher the dependency rate, the lower the saving. The increase in the dependency of the young age population can cause the working population to increase their consumption expenditures and to allocate less of their income to saving. On the other hand, the increase in tax burden may lead to a reduction in saving rates due to its negative impact on disposable income. In this context, the aim of this study is to evaluate the effects of young age dependency rate, increase in per capita income and tax burden on gross national saving. For this purpose, ARDL (Autoregressive Distributed Lag Models) boundary test is applied by using the data of G-7 countries for the period of 1979-2017. According to the test results, the increase in tax burden negatively affects national saving, while the increase in per capita income positively affects the saving. Although the coefficient of the young age dependency ratio is negative, the probability value is not significant. [ABSTRACT FROM AUTHOR]

In the European communities, the need for tax harmonization has begun to commence since the beginning of integration efforts in the 1960s. The first attitudes to tax harmonization were very ambitious. The plan was not only structural harmonization but also harmonization of tax rates. The paper examines the nature and course of the direct tax harmonization process, describes its advantages and disadvantages as well as the positive and negative effects of tax competition. The paper aims to examine the development and volume of selected income taxes collected in the Member States of the European Union. It tells whether the harmonization of income taxes is still a stagnant process. Cluster analysis deals with looking for similarities of multidimensional objects. Two clustering methods were used – hierarchical agglomeration clustering and non-hierarchical clustering. Cluster analysis aimed to achieve groups of states that would have some homogeneity. Cluster analysis sorted the data into sets with the highest possible similarity within the group and the most significant difference between the groups. Analysis of tax burden and income tax rates confirmed significant differences in these indicators across the EU. On the other hand, cluster analysis revealed similar developments in tax systems in terms of their geographical location in Europe. Cluster analysis can be used to suggest possible steps to co-operate in harmonizing Member State taxes in the future. The authors of this article propose the possibility of harmonizing taxes and cooperating gradually within clusters rather than trying to apply uniform rules in all EU Member States at the same time. The conclusion of the article raises problems in the field of harmonization of direct taxes in the EU. The possibility of preserving autonomy in deciding on tax burden in the country is left to the many Member States because they see that autonomy as a competitive advantage, particularly in the field of investment. [ABSTRACT FROM AUTHOR]

Purpose: To verify if indirect taxes on the income of taxpayers actually tend to be regressive, increasing the disparity between Brazilian taxpayers. Methodology: The empirical strategy consisted in estimating a simple linear regression model, based on the model developed by Pintos-Payeras (2008). The database was based on the data from the family budget survey (POF / 2002-2003). Results: The results show that indirect taxation tends to be regressive when family income is taken as the basis, since it affects all without distinguishing between its taxable capacity. Contributions of the Study: The study demonstrates that those who are in better economic conditions have less and less to bear with this tax burden, and, therefore, taxes are more heavily burdened on people with lower purchasing power. [ABSTRACT FROM AUTHOR]

Purpose: To verify if indirect taxes on the income of taxpayers actually tend to be regressive, increasing the disparity between Brazilian taxpayers. Methodology: The empirical strategy consisted in estimating a simple linear regression model, based on the model developed by Pintos-Payeras (2008). The database was based on the data from the family budget survey (POF / 2002-2003). Results: The results show that indirect taxation tends to be regressive, when family income is taken as the basis, since it affects all without distinguishing between its taxable capacity. Contributions of the Study: The study demonstrates that those who are in better economic conditions have less and less to bear with this tax burden, and, therefore, taxes are more heavily burdened on people with lower purchasing power. [ABSTRACT FROM AUTHOR]

We respond to concerns raised by Kesselman (2018) about our illustrative proposal on how to finance and implement a basic income guarantee (BIG) in Canada (Boadway, Cuff, and Koebel forthcoming). We demonstrate how our proposal could be adjusted to mitigate Kesselman's main concern of high marginal effective tax rates (METRs) and argue that the incentive effects, redistribution consequences, and public opposition are not as detrimental as Kesselman suggests. We also show that Kesselman's proposed alternate—an expanded Working Income Tax Benefit—could be incorporated into our BIG but would result in higher METRs and efficiency losses at some incomes. [ABSTRACT FROM AUTHOR]

Environmental taxation is regarded as an effective tool to improve air quality in China, but its distributional effects causing serious disparity among multi-groups and multi-regions are understudied. Here this paper constructs a multi-regional dynamic recursive computable general equilibrium (CGE) model to explore the distributional effects of China's environmental taxation among different income groups and regions, by specifying the elasticity parameters of urban households' consumption in the model, and combining with various micro-data such as household survey data and environmental statistics database. This paper simulates the air pollution reductions of China's environmental taxation, and the impacts on the income and expenditure of households with various environmental tax rates or manners of tax revenue recycling. Results have shown that China's environmental taxation will widen the gap between different income groups and different regions. Also, such adverse distributional effects will be increased by higher environmental tax rates. However, recycling environmental tax revenues to both households and enterprises can reduce the losses of households' income and consumption. Yet recycling revenues to enterprises is more effective in narrowing the gap between income groups and regions while improving regional economic development. Our findings may pave a way to design appropriate environmental tax rates and tax revenue recycling manners for China's future environmental tax policies at the regional level. [Display omitted] • A multi-regional CGE model is constructed to explore the distributional effects. • Various environmental tax rates and tax revenue recycling manners are considered. • Low-income households and underdeveloped regions will bear more tax burden. • Recycling revenues to enterprises is more effective in reducing wealth disparity. [ABSTRACT FROM AUTHOR]

In the late 1990s, China enacted a rural tax reform known as the “Tax-for-Fee Reform” (TFR), largely driven by a desire to address farmers' complaints about what they perceived as a heavy and regressive tax burden. This study examines the impact of the TFR on inequality in rural villages in China. Our results suggest that the TFR plays an effective role in reducing inequality within villages. Its impact on a consumption-based measure of inequality took effect immediately; its impact on per capita household income inequality took somewhat longer. Our results also suggest that it was “rich” and/or “coastal” villages that exhibited a significant reduction of inequality as a result of the TFR, whereas “poor” and/or “inland” villages experienced no significant changes in inequality from the reform. [ABSTRACT FROM AUTHOR]

OECD-wide tax burden of labor is relatively high. In the last decade majority of Member States have begun in order to lower the tax burden of labor, reducing the tax rates or the taxable income threshold to be raised. In addition, some countries began tax credit application on low-income workers or increasing the amount of tax credit. Thanks to this kind of tax reforms the tax wedge has relatively decreased, but shows significant differences from country to country. Indeed, the tax wedge for a person over 4% in the 2000-2010 period decreased in some countries, has shown a sharp increase in Turkey. Turkey is one of the highest among OECD members the tax wedge. This also encourages informal employment. To struggle this serious problem is extremely important which reduction of social security and income tax liabilities especially in low-wage. In addition, low-wage workers resemble in the United States in a tax credit system that Turkey will begin even more lower the tax burden. [ABSTRACT FROM AUTHOR]

Abstract: This paper investigates the importance of political ideology for the choice of the tax structure. In particular, we examine the effects of cabinet ideology on the distribution of the tax burden across factors of production and consumption for 16 OECD countries over the period 1970–2000 by employing four alternative cabinet ideology measures and by using the methodology of effective tax rates. There is evidence of partisan effects on tax policies. In particular, we find that left-wing governments rely more on capital relative to labor income taxation and that they tend to increase consumption taxes. The latter result suggests that left-wing governments may exploit a type of fiscal illusion on the part of taxpayers in order to obtain political benefit. [Copyright &y& Elsevier]

The article focuses on the circuit breaker property tax relief, the first property tax credit program dedicated to address unfair tax burden placed on low-income homeowners and renters in the U.S. It states that the circuit breaker offers property tax relief calculated in connection to the income of the filer. Moreover, the circuit breakers include a property tax relief program which offers a tax credit or deduction when property tax liability exceeds a percentage of the income of a taxpayer.

Abstract: This study finds that the effective state and local tax rate for the top 1% of income households as a percentage of the effective state and local tax rate for the bottom 20% of income households in 2002 is significantly influenced by whether a state has a multi-rate income tax, right-to-work laws, the liberalism of a state''s electorate, the average tax burden in a state and past tax policy. Democratic Party strength in state government, Republican or Democratic Party institutional control of state government, change in real per capita income, a Democratic Governor and the change in the share of income going to the top 1% of income households are not significant predictors. The empirical results are identical for the top 2–5% of income households to the bottom 20% of income households. [Copyright &y& Elsevier]

Examines the tax burden on residents of each state in the United States at various points along the income spectrum. Method used to measure the tax burden; Flow of taxes among states; Structure of the federal revenue; Variations among states in the impact that the various taxes have on taxpayers.

Shows how tax burdens on a family of four, with three alternative sizes of income, can vary because of different combinations of work and residence locations in each of several localities in Kentucky. Reasons for tax burden differences; Causes of higher tax burdens associated with cities; Extent in which tax burden differences are accompanied by differences in government expenditure benefits.