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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Over 140 countries agreed on a fundamental corporate tax reform in 2021 to be implemented in 2023 and beyond. To measure its potential effects, we study asset price changes within minutes of the reform announcements. We construct proxies for the reform's costs regarding U.S. companies' tax burdens and countries' public finances. Likely exposed companies exhibit significant negative stock returns. Our lower-bound estimates indicate total shareholder value losses of $112.6 billion one day after the reform announcements. Further, likely exposed countries experience increases in sovereign debt credit risk. Our findings inform the cost-benefit analysis of a historical international tax reform. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Regressive taxation plays an increasingly important role in financing public programs, but prior studies have not fully explored the conditions under which citizens would support such financing strategies. This paper fills this gap by focusing on the United States, where sales taxes account for nearly one-third of state government revenue, and sales tax ballot measures have received majority support. I conducted an online survey experiment to examine two potential sources of public support for a sales tax increase: equal treatment beliefs (i.e., that all taxpayers should pay the same rate) and a lack of public awareness of the distributive consequences of sales taxes. I find that exposure to information about sales taxes' distributive consequences significantly reduced respondents' support for a sales tax increase, but that equal treatment beliefs had no significant effect on such support. Additional analyses suggest that other-regarding motivations are a plausible mechanism underlying the effects of information provision. These findings shed light on how misperceptions of tax burdens shape support for regressive taxation and have broad implications for how fairness beliefs influence tax policy preferences. [ABSTRACT FROM AUTHOR]

This research aims to determine the role of 2017-2021 general state tax amendments in terms of economic development and improvement of the business environment in Georgia. The following factors were used To evaluate the effectiveness of the tax burden: How the tax system is adjusted to the payer, whether it contributes to economic progress, and what the scope of taxes is. Tax policy experts were interviewed and asked to discuss tax policy reform objectives, options, and mechanisms. The interviews were semi-structured, supported by a briefing document and a topical guide, audio-recorded, transcribed, and analyzed. The efficiency of implemented changes for the EU Association Agreement was also evaluated. Compared to Georgian tax policy, EU tax policy is more liberal. The research revealed opportunities, future perspectives, and the significance of tax reforms and their positive effect on businesses. Based on in-depth interview findings, a detailed analysis of the financial sector is offered. [ABSTRACT FROM AUTHOR]

The article evaluates the development of the tax burden on cigarettes in the Czech Republic from 1993 to the end of 2023. Tax burden is represented by effective tax rate. The research results show that the tax burden on these products is still increasing. Not only does the tax burden increase, but so does the price of these products. The regression analysis results show that quantities such as the price of cigarettes, the effective tax rate or the amount of cigarettes consumed are factories that positively influence tax revenue. Since the tax rate or the price of these products constantly increases, the tax revenue is also increasing. It increased almost six-fold over the entire analyzed period. At the same time, it was found that other factors, such as the average wage, also affect the tax revenue. It is necessary to consider that the cigarette consumption has been showing a downward trend in recent years. However, the reason is not only the increasing tax burden and the price of these products but also the transition of consumers to so-called e-cigarettes. A reduction in cigarette consumption may be reflected in the future by reducing healthcare costs, which will create potential reductions in public health insurance payments. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines investment responses to emission taxes and the role of tax incidence in passing on tax burdens. Using private firms from Spain and the introduction of an emission tax in 2013 in the Autonomous Community Valenciana, we show that investments decline in response to the emission tax. Importantly, this investment decline does not depend on the level of pollution but on economic factors related to tax incidence. Investments in firms operating in highly competitive markets, firms with low pricing power, and firms with low financial flexibility are the most affected by environmental taxes. We generalize the investment findings using the introduction of carbon taxes in France and Ireland in a stacked difference-in-differences design. Overall, our results indicate that emission taxes affect not only polluters but also other firms and stakeholders such as suppliers, customers, and consumers depending on the relative elasticities of supply and demand. [ABSTRACT FROM AUTHOR]

Global climate change and the collection of environmental protection taxes are accelerating the green transformation of thermal power enterprises. This study selected Chinese thermal power listed companies as samples and used a dynamic three-stage (operational, green transformation, and market performance) network DEA model to evaluate their transformation efficiency and corporate performance. This paper incorporates targeted indicators such as ESG (environment, society, governance) and stock prices into the model and conducts a comparative study on the basis of macro policies and the geographical location of the enterprise. A comparative analysis was conducted on the efficiency of enterprises before and after the adjustment of the environmental tax burden, using the environmental tax burden as an exogenous variable. Thus, the following conclusions can be drawn: there is a certain positive correlation between the collaborative efficiency of the two links of thermal power enterprises and the economic development of their respective regions. Moreover, the green transformation efficiency of most thermal power enterprises is superior to the market performance efficiency. The environmental tax burden mainly improves the overall efficiency of thermal power enterprises by improving their operational efficiency and efficiency in the green transformation stage without affecting market performance. To further improve efficiency, thermal power enterprises should actively communicate with stakeholders to strive for more financial relief. [ABSTRACT FROM AUTHOR]

This case examines the tax implications of working in multiple tax jurisdictions. Students are presented with a case that considers the allocation of taxable income for a player in the MLB based on state income tax laws. This allows students to gain a more complete understanding of the impact of state and local taxes on total individual tax burden. It also challenges students to think critically about tax planning strategies that can be implemented to minimize tax liabilities when dealing with multiple tax jurisdictions. Finally, the case provides an opportunity for an instructor to engage students in tax research at an appropriate level for the course. The case can be adapted to use in undergraduate and graduate courses for individual taxation, state and local taxation, or tax research. Student responses indicate that they find the case interesting and beneficial in improving their understanding of state tax issues. [ABSTRACT FROM AUTHOR]

Despite the tax reform in the 1980s, the Moroccan tax system still suffers from structural vulnerabilities that have led to inefficient tax policies and increasing sectoral disparities, which have led to an increase in the tax pressure rates between 1990 and 2020. To overcome these vulnerabilities, and according to the recommendations of the 2019 National Tax Conference, the Moroccan tax system has been recently restructured, with the aim of strengthening the principles of equity and tax efficiency. The main objective of this paper is to determine the impact of the tax pressure on long-term economic growth in Morocco from 1990 to 2020. To do so, the methodology adopted in this work consists of verifying the effect of the tax pressure on economic growth through a quantitative methodology based on two vector autoregression approaches: the vector autoregression model (VAR) and the vector error correction model (VECM). The results of this study confirm that the effect of fiscal pressure on economic growth in Morocco is not significant in the long run, and therefore, we can deduce that taxation is not yet a well-mastered instrument for the state to act on the economic sphere. The results show a complex relationship between tax pressures and economic growth in Morocco, underlining the importance of tax reform. However, the research is limited by the specific models and the need to explore other determinants. The contribution of this paper lies in its in-depth empirical analysis of fiscal pressure and its influence on long-term economic growth in Morocco, as based on VAR and VECM modeling. This econometric approach makes it possible to isolate the dynamic effects and responses of economic variables over time, offering an understanding of the interactions between tax policy and long-term economic growth. By focusing specifically on the Moroccan context, this study offers an original perspective and helps to fill the gap in the empirical research in this area while providing a valuable analytical framework for assessing fiscal policies and their impact on long-term economic growth. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Germany has become a high-tax country for companies over the past 15 years. There is currently a lot of discussion in politics about how the tax burden for companies can be lowered in order to enhance private investments. Compared to challenges in the areas of infrastructure or bureaucracy, the disadvantage of a high tax burden can be easily remedied by political decisions. According to simulations, a tax cut would lead to a noticeable upswing in private investments and could also act as a signal in international location competition that should not be underestimated. [ABSTRACT FROM AUTHOR]

The German coalition agreement (2021) intends to transform withholding tax class combination III/V for married couples to the symmetric tax class combination IV/IV with a factor, to strengthen economic independence and fairness. The taxation with a factor could eliminate possible disadvantages of tax class combination III/V, particularly the high marginal tax burden in tax class V. The planned reform is associated with several pitfalls. We present the expected reform effects on tax revenues and income distribution, which we calculate using a microsimulation model. We then discuss possible difficulties associated with the reform's implementation, in particular those concerning individuals employed less than 12 months and sole earners. [ABSTRACT FROM AUTHOR]

Tax reduction is supposed to garner popular support, yet rural unrest sharply increased following the Chinese government's agricultural tax reform aiming to reduce peasants' tax burden. We argue that the tax reduction could undermine village elites' economic and political incentives to assist the state in implementing unpopular policies and achieving desirable outcomes. We exploit the exogeneous timing of the agricultural tax reform that abolished the agriculture tax and estimate its impact through a rare national representative village‐level panel dataset. We demonstrate that the tax reform led to tax noncompliance and rising social unrest. We further show that local governance worsened because village elites were disincentivized from carrying out state‐preferred yet unpopular policies. [ABSTRACT FROM AUTHOR]

Taxes today are regarded as instruments for social policy and policy of redistribution of income and wealth. Tax equality and equity represent essential components of a welfare state. Theoretical debates around the role of social and political principles in taxation in modern conditions obtain even greater significance. Today, almost all modern countries, aiming towards improved equity in taxation and achieving social equality, have incorporated the principles of equality and equity within the framework of constitutional norms. The principle of equality of citizens in front of the law, including the Tax law is in direct correlation with the principle of economic and social solidarity. The paper focuses on the principles of tax law which are in direct correlation with social equity. [ABSTRACT FROM AUTHOR]

Tax incentives are an important driving force for enterprises to ease financing constraints and promote innovation. Current studies focus on the tax-reduction effect of corporate tax incentive policies, paying less attention to the tax uncertainty engendered by tax reform. This study explores whether the predictability of corporate tax burdens is a key restrictive factor in corporate innovation. It focuses on the impact of tax uncertainty arising from the tax reform process on enterprise innovation, proposing a multidimensional measurement method to identify corporate tax uncertainty. The results show that tax uncertainty significantly inhibits corporate innovation and that its influence channels operate mainly through corporate financing constraints and information transparency. Further heterogeneity analysis reveals that a better regional economic system environment, greater tax enforcement effort, and digital transformation can restrain the negative impact of tax uncertainty on enterprise innovation. These findings enrich the literature on the factors influencing corporate innovation behavior and extend the research on tax reform, providing an innovative perspective for interpreting enterprises' tax burden. Furthermore, it offers practical implications for tax reduction reforms and guidelines for enterprise innovation. [ABSTRACT FROM AUTHOR]

The purpose of this study is to evaluate the institutional and tax environment for businesses in 21 countries of the European Union (EU), using a multi-criteria analysis and, in particular, the PROMETHEE II method, based on thirteen evaluation criteria and the ranking of the European economies. Through the research, the importance of factors related to the efficiency of the tax administration, the tax capacity of the country, the growth rate of the economy, the quality of institutions, the level of corruption, the tax burden, the time of tax compliance and the political stability of the country is studied, in the formation of an attractive environment for the development of entrepreneurship in the EU economies. Moreover, the results of the analysis revealed the existence of significant fiscal and institutional differences between the EU economies under investigation, regarding the development of entrepreneurship. These differences are due to the size of the economy, the institutions, the history, the economic crises of each country and a wide range of dissimilar policy recommendations, which reflect asymmetric policy responses. The study concludes by offering theoretical and political recommendations to improve the institutional and fiscal environment in EU economies so that entrepreneurship can play an important role in improving the economic and social situation of a country. [ABSTRACT FROM AUTHOR]

Taxes are the main source of state income. The research aims to examine the influence of the contribution of the service and the industrial sector on tax revenues. The difference in research is that it uses per capita income as a moderating variable. This research uses data from countries, such as Denmark, Finland, Iceland, Norway, and Sweden, which have several similarities in terms of prosperity, education, and a strong and stable economy. The data used comes from the World Bank and spans 2002-2019. The research results show that the contribution of the service sector, industry, and per capita income positively influences tax revenues. Supported by high tax rates, increasing donations to the service, and industrial sectors means that tax revenues are growing. Interestingly, using per capita income as a moderating variable negatively affects the service and industrial sectors' tax revenues. With the moderating influence of per capita income, tax avoidance can grow in the service and industrial sectors. One of the tax avoidance measures is using a transfer pricing scheme. This was triggered by high tax rates and the Human Development Index (HDI). The higher the tax rate, the more loopholes the taxpayer will look for to avoid taxes, to lower the tax burden. A high HDI will enable a high level of tax knowledge. Apart from increasing tax compliance, a high level of tax knowledge will also allow tax avoidance. [ABSTRACT FROM AUTHOR]

The wage elasticity to corporate income tax (CIT) is an essential parameter for assessing tax policy reforms. This paper applies meta‐regression analysis to quantitatively review the growing empirical tax incidence literature that indicates a substantial shift of the tax burden onto employees. While most studies report a large wage‐reducing effect of the CIT, our findings suggest that estimates with positive values are published less often than they should. After accounting for the bias, we find no significant average association between wage rates and corporate taxation. We document that the tax variable, econometric method, type of tax variation, and underlying time and country coverage of studies drive the heterogeneity among reported effects. The implied best‐practice estimates suggest that the tax elasticity of wages is systematically larger for emerging countries and smaller when tax changes at the subnational level are exploited. [ABSTRACT FROM AUTHOR]

The impact of government behavior on emission reductions has gained widespread attention, but fewer studies have explored the relationship between vertical transfers (VT) and carbon emissions (CE). We empirically test the CE reduction mechanism of VT by constructing two‐way fixed effects models based on data of 278 Chinese cities from 2005 to 2020. Empirical analysis finds that VT reduce the taxing efforts of local governments and the tax burden of enterprises, promote the upgrading of enterprises' production technology, and ultimately reduces CE. Conclusions suggest that transfer payments should be actively used to establish preferential policies to assist enterprises in reducing CE. [ABSTRACT FROM AUTHOR]

Purpose: Companies avoid taxes in a variety of ways and use different methods to do that, one of the most common being earnings management. The purpose of this paper is to investigate whether companies manipulate their financial data in order to reduce taxes paid. Design/methodology/approach: We considered a sample of 63 listed Romanian companies for the period 2016–2021. The Beneish model was used for estimating earnings management, and the effective tax rate was used to measure tax avoidance. The analysis was carried out using regression analysis in Stata13 software. Findings: The findings of the research indicate a negative and statistically significant association between effective tax rate and earnings management, implying that one of the main reasons why companies manipulate their earnings to reduce tax burden and avoid taxes. Moreover, our results show that return on assets (ROA) has a statistically significant negative influence on the effective tax rate. Furthermore, our analysis reveals that firm size, growth, and Big4 audit have no effect on effective tax rate. Research limitations/implications: Because it analyzes concrete cases using financial data and provides some recommendations for addressing the issue of tax avoidance, this work is useful in advancing both quantitative and qualitative research on this topic. This research is relevant for businesses, governments, regulators, audit professionals and investors. Originality/value: The study, by analyzing concrete cases using reported financial data, contributes in filling the gap within the literature that results from a lack of scientific research on the relationship between tax avoidance and earnings management, and then it clarifies the nature of the causal connection between them. Moreover, it considers a combination of firm related variables including performance, size and also audit quality. [ABSTRACT FROM AUTHOR]

This paper assesses the current state of the US federal individual taxation, and considers its recent evolution, with an emphasis on the changes to the individual income tax enacted in the 2017 Tax Cuts and Jobs Act (TCJA), and evidence on their impacts. How has the design of the tax changed, and how has this affected tax revenues, the distribution of tax burdens, marginal tax rates, and the breadth of the tax base? What were the rationales for the changes, and what does economics have to contribute to the debate over whether the changes were a good idea? What have we learned so far from empirical research on the impacts of recent changes in individual tax policy, including especially the changes enacted since 2017, and what does this imply for the optimal design of individual taxation? [ABSTRACT FROM AUTHOR]

Economists have widely endorsed pricing CO 2 emissions to internalize climate change-related externalities. Doing so would significantly affect coal, the most carbon-intensive energy source. However, U.S. coal markets exhibit an additional distortion: the railroads that transport coal to power plants can exert market power. This article estimates how coal-by-rail markups respond to changes in coal demand. I identify markups in a major intermediate goods market using both reduced-form and structural methods. I find that rail carriers reduce coal markups when downstream power plant demand changes due to a drop in the price of natural gas (a competing fuel). My results imply that decreases in coal markups have increased recent U.S. climate damages by $11.9 billion, compared to a counterfactual where markups did not change. Incomplete pass-through would likely erode the environmental benefits of an incremental carbon tax, shifting the tax burden towards upstream railroads. Still, a non-trivial tax would likely increase welfare. [ABSTRACT FROM AUTHOR]

As the most direct way to guide and support the transformation and upgrading of grain enterprises, government subsidies have an important orientation for the transformation and development of Chinese grain enterprises and the improvement of new quality productivity. Based on the data of 136 grain listed companies and NEEQ listed companies from 2015 to 2022, this paper empirically tests the impact of government subsidies on the new productivity of grain enterprises and its transmission mechanism. The research results show that government subsidies have significantly improved the new productivity of grain enterprises. The analysis of the mechanism of action finds that government subsidies have promoted the improvement of new productivity of enterprises by optimizing the structure of human capital and improving the absorptive capacity of enterprises. Further research shows that the higher the degree of product market competition, the lower the tax burden of enterprises, and the government subsidy exceeds the threshold value of 8.9685, the greater the effect of government subsidy on the improvement of new quality productivity of enterprises. The economic consequence test shows that government subsidies can promote the new productivity of grain enterprises and effectively improve the total factor productivity of enterprises. The research in this paper provides relevant enlightenment for the Chinese government to strengthen project planning, strengthen resource coordination, and implement scientific and accurate policies in the new round of fiscal and taxation system reform. [ABSTRACT FROM AUTHOR]

With the increasing requirements for environmental protection, authorities have enacted different carbon policies to promote sustainable practices. This study considers the competition among different manufacturers and multiple demand markets in the supply chain network. We examine and compare their equilibrium decision conditions under three common carbon policies: carbon cap, carbon cap‐and‐trade, and carbon tax. Results suggest that under lower carbon caps, manufacturers greatly reduce their carbon emissions by reducing production quantities, which causes a decrease in profits. However, an appropriate carbon cap size can not only motivate manufacturers to reduce carbon emissions but also improve their profits. Under a certain price for carbon credit, the effectiveness of a carbon cap‐and‐trade policy is similar to that of a carbon cap policy, but it has more flexibility. Carbon tax is effective, but it brings more tax burden to manufacturers. We provide implications for companies to optimize their production methods to achieve sustainability. [ABSTRACT FROM AUTHOR]

Recent studies show that the tax‐induced lock‐in effect discourages CEOs from unwinding their unrestricted equity and subsequently exacerbates their risk‐aversion. I investigate how CEOs' unrealized capital gains tax liabilities (tax burdens) influence financial reporting conservatism. I find that the demand for accounting conservatism decreases with CEO tax burdens. Further analyses show that the negative relation between CEO tax burden and conservatism is stronger when the firm has high leverage and high default risk and when the CEO's incentives are more aligned with equity holders. This highlights the shareholder–creditor agency conflicts mitigation role of CEO tax burdens in reducing creditors' demand for conservatism. I exploit the Federal Taxpayer Reform Act of 1997 and staggered state‐level tax cuts that significantly decreased personal capital gains tax rates as identification strategies. [ABSTRACT FROM AUTHOR]

This article investigates the occurrence and outcomes of corporate tax-related political activity through bribery. Specifically, it examines the extent to which firms bribe government officials through gift-giving, banqueting, and entertaining activities and the extent of payoffs that firms gain from these bribery practices. Using a large hand-collected dataset of Chinese listed firms for the period from 2009 to 2014, I find that firms that spend more on consumption bribery exhibit a significantly lower tax burden. This negative association is mainly driven by small firms, non-state-owned firms, state-owned firms with weak political connections, and firms in competitive industries. Further evidence shows that the tax benefits from bribery are more apparent in more corrupt, less economically developed, and less liberalized regions. Furthermore, the payoffs of tax bribery are mitigated by 45.4% after the implementation of China's anti-corruption campaign in 2012. These findings have policy implications for governments to optimize investment environments and increase tax revenue by curbing power-for-money deals. [ABSTRACT FROM AUTHOR]

Taxes are believed to distort how firms behave and market equilibrium. Since tax reduces equity returns, firms will intuitively reduce tax costs through tax avoidance and any other production or operational cost to achieve the highest returns. One of the production costs that often under hair cross is labour cost. Firms can use their bargaining power to reduce wages to offset tax costs. On the other hand, firms' attempt to reduce wages might, in turn, lower their production output. Lower output means a lesser taxable base and less marginal benefit for tax avoidance. Lower output also means lower equity returns and might incentivize firms to do more tax avoidance. Therefore, many researchers are looking for answers to the following question: how much do firms avoid tax in the face of their capability to shift the tax burden to labour? This study aims to investigate the relationship between tax incidence and tax avoidance in the industrial sector in Indonesia. While previous studies have shown solid empirical support for this relationship, Indonesia's employment conditions and industrial characteristics differ from those in the United States and other countries. The data for the study was taken from the reports of IDX-listed companies in the industrial sector ranging from the year 2018 to the year 2022. The data analysis uses Generalized Least Square (GLS) panel data regression. Using education level as a proxy for tax incidence and cash ETR as a proxy for tax avoidance, the authors found no significant connection between them because the industrial sector predominantly employs a much higher number of workers with low education levels compared to those with higher education. Additionally, highly educated workers in Indonesia often face job market challenges; thus, horizontal mismatches happen. Instead, other variables like sales growth, leverage, firm size, SG&A expenses, and loss carryforward significantly influence tax avoidance.

AbstractThis paper investigates the impact of China’s value-added tax (VAT) expansion reform on specialization using data sourced from listed companies. Through an examination of changes in business scope and revenue, two significant findings emerge. First, certain companies extend their services beyond internal use, aiming to boost sales during the post-reform period. This expansion is evident in the changes observed in the business scope matrix. Second, certain service providers experience a significant revenue increase as they attract outsourced orders from manufacturers affected by the reform. The disaggregated analysis of the three sectors involved in the VAT expansion reform further substantiates these findings. Moreover, we rule out tax avoidance as a motive by evaluating actual changes in tax burden, as opposed to projected burdens. These findings have important policy implications for understanding the ramifications of VAT reform and the dynamics of specialization within the industry. [ABSTRACT FROM AUTHOR]

The estimation and analysis of the distribution of the negative health impacts of certain commodities subject to excise taxes in Belize and the distribution of the burdens of the excise taxes across households of different income levels are the focus of this article. Particular attention is given to the taxation of soft drinks and cosmetics. We examine the income distribution and tax revenue impacts using the commodity data from the household expenditure survey by and the effective tax rates expressed as a percentage of the value of the final consumption of each item. As in many developing countries, taxes on alcoholic beverages and tobacco products are found to be regressive. The most regressive excise taxes are on soft drinks and cosmetics. Households across the economy pay more in excise taxes on cosmetics than they do on either alcoholic beverages or tobacco products. Relative to the level of household expenditures, the burden of the excise taxes on cosmetics is highest for households in the lowest quintile of total expenditures. The impact of soft drinks in creating obesity is likely to be much greater for high income households whose total consumption per household is twice that of low-income households. [ABSTRACT FROM AUTHOR]

Using a staggered difference-in-differences design, this paper analyses the effects of tax increment financing (TIF) in Cook County, Illinois. TIF is negatively correlated with the number of establishments in Chicago, likely due to unintended tax burdens and competition between TIF districts. In non-Chicago areas, TIF shows positive effects on employment for 6–20 years. Lastly, this study provides evidence of the persistent effects of TIF and its potential to move localities from low- to high-density economic activity, calling for a re-evaluation of the argument against subsidising economically lagging areas. [ABSTRACT FROM AUTHOR]

Tax holidays remain essential to attract investment in Africa and, more broadly, in developing countries. However, this tax incentive must be better designed to target relevant firms or investments. Based on 2020 tax information, we compute the Effective Average Tax Rate (EATR) of a representative firm with and without investment incentives for 44 African countries. We appreciate the progressivity or regressivity of national tax systems applied to corporations by varying the tax burden with the gross firm's profitability. Under tax incentives regimes, 20 out of the 44 countries have a regressive EATR profile: They tax more, less profitable firms. We emphasize that 65% of these countries use corporate income tax (CIT) exemption as their main tax incentive instrument. We consider an alternative tax incentive mechanism: CIT credit. This instrument appears superior in several dimensions: (1) Tax credit may reduce the tax burden as CIT exemption does; (2) however, it keeps and may even restore the progressivity of tax incentives; and (3) it is less costly to manage for the tax administration. We developed a web application that allows replicating and modifying our analysis and any financial or tax parameter (https://shiny.mesocentre.uca.fr/app/citregressivity). [ABSTRACT FROM AUTHOR]

The current phase of global economic growth is witnessing a convergence of interests among macro-level entities such as home countries, host countries, and third countries, associated with income and profit receipt. Concurrently, meso-level actors have emerged in the form of extensive cross-industry partnerships. Additionally, macro-level entities, such as international organizations, state associations, and supranational bodies, are playing a significant role. Considering that tax policies exert a substantial influence on a nation's economic dynamics, innovative activity, and competitiveness, assessing the impact of tax burden on the degree of economic freedom within countries is significant. This study aims to identify the ideal level of the tax burden, and its results have implications for various aspects of economic development. This research contributes to encouraging economic growth, fostering entrepreneurship and innovation, ensuring social justice, and improving the overall quality of life for the population. The model proposed in this study can be used for determining the ideal level of taxes (tax burden), thus striking a balance between societal and economic needs as well as the effect of taxation on economic freedom in a country. [ABSTRACT FROM AUTHOR]

The Law of Beaumont, established by a charter issued in 1182, was granted over a period of about 150 years for up to 700 villages in present-day France, Belgium, Luxembourg and Germany. It seemingly was to provide incentives to settle or stay in such villages. Based on an analysis of the Latin text (provided with a German translation) the paper questions that the focus of the charter was accurately described in older literature and common handbook entries. In those, the impression is given that the focus was on liberation from serfdom, tax relief and municipal self-government. The paper concludes that a high degree of self-government was indeed an outstanding feature, although it remains unclear whether the citizens originally had the right to elect mayor and jurors. Particularly favourable tax burdens could not be substantiated. There is no mentioning at all of any liberation from serfdom and burdens associated with it. The focus of the charter is on a precise definition of tax burdens and of penalties for crimes and their distribution, and on rules of legal process. Legal certainty in these regards must have been the core of its attractiveness both for citizens and lords and explain its popularity. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of China's accelerated depreciation policy on within-firm pay gap. We exploit a firm-level panel data from China's A-share listed companies and estimate the policy effects by constructing a difference-in-differences model. Results show that the accelerated depreciation policy significantly increases the within-firm pay gap of firms of pilot industries than those of non-pilot industries, and this finding continues to hold after accounting for other contemporaneous shocks and is robust to a battery of robustness checks. Our mechanism tests demonstrate that, the rank-and-file employees replaced by the use of capital rather than executives, dominates the positive nexus between within-firm pay gap and accelerated depreciation policy. This effect is more pronounced for firms with higher tax burden, stronger financing constraint and higher capital intensity. We also find that China's accelerated depreciation policy improves overall capital allocation efficiency and labor allocation efficiency. Our findings provide a deep understanding of the link between tax incentives and within-firm pay gap, especially from the perspective of factor allocation. [ABSTRACT FROM AUTHOR]

The transition to a green, sustainable economy is largely reliant on corporate investment in the realm of environmental protection. Utilizing the adoption of the third phase of the Golden Tax Project (GTPIII) in China as a quasi-natural experiment, this paper examines how corporate environmental investment changes in response to greater tax enforcement. Our results reveal that tougher tax enforcement significantly lowers corporate environmental investment. Such an effect is stronger for firms faced by high financial constraints and those operating in non-heavy-polluting industries. Moreover, the mechanism analysis indicates that the higher tax burden induced by greater tax enforcement is the potential channel. Overall, this paper shows that stricter tax enforcement could potentially result in adverse spillover effects on corporate environmental investment, which warrants attention in tax collection practices. [ABSTRACT FROM AUTHOR]

The purpose of the article is to analyze the state of innovative development of the economy of Ukraine and the countries of Central and Eastern Europe and to identify the problems of its provision in the conditions of martial law. The results of the study prove that factors of a military nature have an ambiguous effect on stimulating the innovative development of the country's economy. It has been established that economic evolution through innovation is a prerequisite for strengthening its competitiveness in countering modern challenges and threats. The results of the empirical study made it possible to find out that during the large-scale aggression of Russia on the territory of Ukraine in 2022, a decrease in the level of innovative economic development was also observed in the countries of Central and Eastern Europe. It was established that in 2023, the countries of the analyzed group managed to increase the indicators of innovative activity of business entities and the parameters of the innovative development of the economy. Important problems in ensuring economic progress through innovative activity have been identified: (1) shortcomings of the legislation regulating the innovation sphere; (2) lack of formation of a unified innovation infrastructure; (3) significant tax burden; (4) lack of an effective system of taxation and provision of tax benefits and preferences; (5) lack of effective investment mechanisms in the field of innovation; (6) low level of technological capacity of production facilities; (7) imperfection of the education system; (8) low level of financing of research activities; (9) focus on the export of raw materials and dependence on high-tech imports. In order to ensure sustainable innovative development of the country's economy, it is necessary to create appropriate conditions for the development of innovative potential, activate the creation of cross-border innovation clusters, and strengthen the country's investment attractiveness. [ABSTRACT FROM AUTHOR]

This paper endeavours to investigate whether a complex tax system influences firms' propensity toward tax evasion across countries. To achieve the objectives of this study, we utilised the World Bank Enterprise Survey and the World Bank's Doing Business databases covering more than 46,000 companies from 83 countries. Our study revealed that the increased time required to pay taxes and higher total tax payments were associated with a greater extent and incidence of tax evasion among firms. The consistency of these benchmark regression results was proven through endogeneity analysis and several robustness tests. Furthermore, our heterogeneity analyses showed that the effect of tax complexity on firm tax evasion was more prominent in low- and lower-middle-income countries and also in the primary industry. These findings offer promising evidence for policymakers, particularly in low- and lower-middle-income countries where the majority of companies operate in the primary industry. Addressing the complexity of the tax system could potentially mitigate the adverse impact on tax evasion levels in these countries. Furthermore, our spatial analysis provides valuable insights, emphasising the potential impact of tax complexity in neighbouring countries and underscoring the necessity for policymakers in the home countries to strategise on harmonising and streamlining their tax systems. [ABSTRACT FROM AUTHOR]

This article explores the effects of corporate taxes on shareholders, workers, and investment. It presents different perspectives on the issue, with some arguing that corporate taxes redistribute income and others claiming they are self-defeating. The article introduces a simplified model that predicts how corporate taxes impact wages, employment, domestic pretax profits, and domestic capital. The model suggests that manufacturing firms may be more affected by corporate taxes than service firms, which aligns with recent empirical evidence. The article also provides empirical evidence and analytical examples to support its findings. It concludes by acknowledging the limitations of the model and suggesting areas for further research. [Extracted from the article]

This article examines the effects of the Tax Cuts and Jobs Act (TCJA) on worker earnings in the United States. The study finds that the TCJA led to higher earnings for workers in the top 10 percent of the within-firm earnings distribution and for firm executives. The research also explores how the incidence of the corporate tax cuts varies based on individuals' characteristics such as gender, age, and employment tenure. The analysis uses a panel of employer-employee matched annual federal tax records and compares wage earnings of workers in C and S corporations before and after the TCJA. The study finds that the TCJA did not have a significant impact on the gender earnings gap, but it did lead to a modest increase in within-firm earnings inequality by age and tenure. The results suggest that the earnings gaps widened particularly among highly paid workers. The article discusses potential economic and social factors that may contribute to these heterogeneous effects. [Extracted from the article]

Housing taxation is considered the most obvious tax system inequity. Therefore, this type of taxation should be in line with the benefit principle. This article examines the attitudes of citizens towards residential building taxation in the Czech Republic. The aim of this paper is to evaluate the perception of residential building tax burden by taxpayers who own a house or apartment for housing based on primary research. The research was conducted in the Czech Republic using a questionnaire in 2021 and 2022. Differences in the tax burden perception in relation to improvements in quality of life in a municipality and use of compensation by providing financial benefit in favor of resident citizens are investigated in the context of municipality size. It was found that the majority of respondents in all municipality size categories perceived the tax burden as reasonable. Citizens' positive attitudes towards the taxation of their residential buildings were influenced not only by the quality-of-life improvement in the municipality, but also by the transparency of the municipality's financial management. By compensating for the tax on residential buildings through providing a financial benefit, some municipalities reduced the tax burden for their resident citizens and shifted the tax burden, within the limits of the law, to buildings for business and recreation. The most common forms of financial benefits included reducing or eliminating municipal waste fees. [ABSTRACT FROM AUTHOR]

Over the last three decades, a little-noted change has taken place in state lotteries. This change is an increase in the average payout rate, the share of sales that is returned to players in the form of prizes. Because it reduces the rate of implicit taxation on lottery purchases and its accompanying welfare loss, this change has inadvertently made lotteries better, or at least less objectionable. This paper reviews the normative case for reducing the implied tax, documents the rise in payout rates across the United States, offers an explanation for that rise, notes the starring role played by instant games, illustrates its effect on the regressivity of lottery finance, and documents the surprising correlation between the price of instant games and their payout rates. [ABSTRACT FROM AUTHOR]

This paper delves into the critical role of tax credits, specifically Sections 45Q and 45V, in the financing and economic feasibility of low-carbon-intensity hydrogen projects, with a focus on natural-gas-based hydrogen production plants integrated with carbon capture and storage (CCS). This study covers the current clean energy landscape, underscoring the importance of low-carbon hydrogen as a key component in the transition to a sustainable energy future, and then explicates the mechanics of the 45Q and 45V tax credits, illustrating their direct impact on enhancing the economic attractiveness of such projects through a detailed net present value (NPV) model analysis. Our analysis reveals that the application of 45Q and 45V tax credits significantly reduces the levelized cost of hydrogen production, with scenarios indicating a reduction in cost ranging from USD 0.41/kg to USD 0.81/kg of hydrogen. Specifically, the 45Q tax credit demonstrates a slightly more advantageous impact on reducing costs compared to the 45V tax credit, underpinning the critical role of these fiscal measures in enhancing project returns and feasibility. Furthermore, this paper addresses the inherent limitations of utilizing tax credits, primarily the challenge posed by the mismatch between the scale of tax credits and the tax liability of the project developers. The concept and role of tax equity investments are discussed in response to this challenge. These findings contribute to the broader dialogue on the financing of sustainable energy projects, providing valuable insights for policymakers, investors, and developers in the hydrogen energy sector. By quantifying the economic benefits of tax credits and elucidating the role of tax equity investments, our research supports informed decision-making and strategic planning in the pursuit of a sustainable energy future. [ABSTRACT FROM AUTHOR]

We investigate effects of tax reporting institutions on evasion and incidence using an experimental double auction market. We find that 28% of the sellers are truthful when only sellers report, but that 88% and 64% of them are truthful under costless and costly third-party reporting by buyers, respectively. Reporting behavior therefore responds to the intensity of deterrence. However, we find that prices do not fully reflect the lower taxes of the evaders. Thus, when sellers can unilaterally evade taxes, tax incidence deviates from the prediction of the standard model, and there is deadweight loss even if tax revenue is low. Pricing, incidence, and reporting patterns in all treatments are consistent with a model with heterogeneous lying costs, or a combination of lying costs and image concerns that give rise to a motivation to appear honest. [ABSTRACT FROM AUTHOR]

Public finance lies at the heart of politics. It shapes citizens' political attitudes and behaviors. While the expenditure side has been studied very extensively, the income side has been neglected, especially in authoritarian regimes. Taking China as an ideal case, we use a nation‐wide random sample of urban residents to study how citizens under strong authoritarian states perceive their tax burdens. We find that Chinese citizens have low tax consciousness, defined as the perception of fairness both in comparison to people they know and to the amount of public goods they receive. Citizens' income, the amount of public goods they receive, and media consumption have important effects on their tax perception. We argue that there are three mechanisms used by China's "half‐tax state" to reduce their citizens' tax perception: (1) reduce the salience of people's tax burden, conditional on their income level, (2) generate fiscal illusion effects while providing public services in return for taxes paid, and (3) use propaganda to shape the ideology of tax compliance. [ABSTRACT FROM AUTHOR]

In this work, our objective is to explain the decline in the income share of the middle class and the increase in the share of the wealthy - a global empirical phenomenon, commonly referred to as "The Elephant" (Lakner & Milanovic, 2013; Milanovic, 2016) - by examining the different life-cycle income paths of heterogeneous income classes and the varying tax burden on labor and capital income. The model investigates the diverse life-cycle paths and their nonlinear behavior among the income classes under scrutiny. This approach enables us to dynamically analyze the divergence in the income distribution using one of the more important models in economics: The life-cycle and permanent-income framework. [ABSTRACT FROM AUTHOR]