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In a Cournot duopoly with indirect tax evasion, this paper counter-intuitively shows that, in the presence of positive competitive wages, a higher indirect taxation may increase expected profits. This result is likely to occur if the market size (or alternatively, if the cost pressure exerted by wages) is adequately large and the detection probability is not too high, and it is equivalent irrespective of firms optimally choosing either the tax base to disclose to the tax authority or the amount of evasion tout-court. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Professional Business Review (JPBReview) is the property of Open Access Publications LLC 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.)

Context Methods Findings Conclusions Policy Points Earmarked tax policies for behavioral health are perceived as having positive impacts related to increasing flexible funding, suggesting benefits to expand this financing approach. Implementation challenges related to these earmarked taxes included tax base volatility that impedes long‐term service delivery planning and inequities in the distribution of tax revenue. Recommendations for designing or revising earmarked tax policies include developing clear guidelines and support systems to manage the administrative aspects of earmarked tax programs, cocreating reporting and oversight structures with system and service delivery agents, and selecting revenue streams that are relatively stable across years. Earmarked tax policies for behavioral health are perceived as having positive impacts related to increasing flexible funding, suggesting benefits to expand this financing approach. Implementation challenges related to these earmarked taxes included tax base volatility that impedes long‐term service delivery planning and inequities in the distribution of tax revenue. Recommendations for designing or revising earmarked tax policies include developing clear guidelines and support systems to manage the administrative aspects of earmarked tax programs, cocreating reporting and oversight structures with system and service delivery agents, and selecting revenue streams that are relatively stable across years. Over 200 cities and counties in the United States have implemented policies earmarking tax revenue for behavioral health services. This mixed‐methods study was conducted with the aim of characterizing perceptions of the impacts of these earmarked tax policies, strengths and weaknesses of tax policy designs, and factors that influence decision making about how tax revenue is allocated for services.Study data came from surveys completed by 274 officials involved in behavioral health earmarked tax policy implementation and 37 interviews with officials in a sample of jurisdictions with these taxes—California (n = 16), Washington (n = 12), Colorado (n = 6), and Iowa (n = 3). Interviews primarily explored perceptions of the advantages and drawbacks of the earmarked tax, perceptions of tax policy design, and factors influencing decisions about revenue allocation.A total of 83% of respondents strongly agreed that it was better to have the tax than not, 73.2% strongly agreed that the tax increased flexibility to address complex behavioral health needs, and 65.1% strongly agreed that the tax increased the number of people served by evidence‐based practices. Only 43.3%, however, strongly agreed that it was easy to satisfy tax‐reporting requirements. Interviews revealed that the taxes enabled funding for services and implementation supports, such as training in the delivery of evidence‐based practices, and supplemented mainstream funding sources (e.g., Medicaid). However, some interviewees also reported challenges related to volatility of funding, inequities in the distribution of tax revenue, and, in some cases, administratively burdensome tax reporting. Decisions about tax revenue allocation were influenced by goals such as reducing behavioral health care inequities, being responsive to community needs, addressing constraints of mainstream funding sources, and, to a lesser degree, supporting services considered to be evidence based.Earmarked taxes are a promising financing strategy to improve access to, and quality of, behavioral health services by supplementing mainstream state and federal financing. [ABSTRACT FROM AUTHOR]

While a value-added tax (VAT), which supports a welfare state, was officially introduced in Japan in 1989, earlier attempts to implement this tax system failed. This study looks in-depth at why Japan was slower than other countries to implement a VAT. The tax authorities' debates during the 1960s and 1970s are reviewed to understand why other attempts to introduce a VAT failed. Implementing the VAT would require a shift from the ideology centering on a direct tax to acceptance of indirect taxes and justification for a general consumption tax's superiority over specific consumption taxes. Four influential factors are identified. First, in 1960, the ideology centering on a direct tax made a VAT inherently inferior. Second, in the 1968, "Break Fiscal Rigidification Campaign" created a revenue-neutral path for indirect tax increases but favored specific consumption taxes. Third, the Fundamental Issues Subcommittee conceptualized "high benefit/high cost" in the early 1970s and established the VAT's superiority over specific consumption taxes based on a study of overseas travel to European Commission countries. However, the VAT was abandoned due to external shocks. Fourth, the attempts to link the VAT with fiscal reconstruction in the late 1970s faced strong opposition from consumers, small businesses, and the ruling party. Failure to introduce the VAT in the 1970s eliminated the possibility of using it to raise taxes in the early 1980s. The findings reveal that Japan's failure to introduce the VAT closed a door to a "high benefit/high cost" type of Western-style welfare state. [ABSTRACT FROM AUTHOR]

We estimate the causal effect of external debt on greenhouse gas emissions in a panel of 78 emerging market and developing economies over the 1990-2015 period. Unlike previous literature, we use external instruments to address the potential endogeneity in the relationship between external debt and greenhouse gas emissions. Specifically, we use international liquidity shocks as instrumental variables for external debt. We find that dealing with the potential endogeneity problem brings about a positive and statistically significant effect of external debt on greenhouse gas emissions: a 1 percentage point (pp.) rise in external debt as a percentage of GDP causes, on average, a 0.5% increase in greenhouse gas emissions. One possible mechanism of action could be that, as external debt increases, governments are less able to enforce environmental regulations because their main priority is to increase the tax base to pay increasing debt services or because they are captured by the private sector who owns that debt and prevented from tightening such regulations. [ABSTRACT FROM AUTHOR]

I investigate the extent to which the low unemployment insurance (UI) tax base in the United States creates disincentives to hire low-wage workers. Using data from the Current Population Survey and state variation in the UI tax base over 30 years, I show that a 10 percent nominal increase in the base raises the teenage employment rate by 1.2 percent. It raises teen/adult and high school/college graduate employment. Indexing the tax base increases the teenage employment rate by 6 percent. The erosion of the UI tax base has thus reduced the employment of low-wage workers. [ABSTRACT FROM AUTHOR]

Terms of trade remain inherently volatile in the global market, exerting pressure on tax revenue with the resulting change in prices and trade (export or import) volumes. This study investigated the empirical relationship between terms of trade volatility from a regional perspective using a dynamic bias corrected model. A corrected dynamic fixed effect and one‐step diff‐GMM models are used to estimate the effect of terms of trade volatility using a set of panel data for 41 sub‐Saharan African (SSA) countries from 1990 to 2022. The findings show that terms of trade changes have a positive effect on tax to GDP ratio and its volatility has indirect negative effects. Informal economic activities tend to deteriorate tax revenue in SSA. Thus, terms of trade volatility depress growth of GDP per capital and tax base in SSA. The findings imply the need for hedging the risks associated with terms of trade volatility, intensifying agriculture production and increasing the speed of formalizing informal sectors in order to reduce associated risks of depressing tax base in SSA. [ABSTRACT FROM AUTHOR]

Marginal rates of contribution (MRC), i.e., the rates at which additional revenues are skimmed via larger contributions or lower transfer receipts, quantify the incentives of a fiscal equalization scheme. This paper is the first to calculate marginal rates of contribution for the Laender (states) in the German fiscal equalization scheme for each of the 51 years since its establishment in 1970 and over five major reforms, taking into account all relevant revenues. Our results show that MRC have been at a consistently high level. Until 2019 the scheme induced an almost full skimming of additional tax revenues of recipient states. With the system's latest reform in 2020, MRC increased further. Recipient states now face an over-skimming of additional tax revenues and, thus, massive fiscal disincentives to maintain their own tax base. While these findings have been widely expected, comprehensive evidence has been missing so far. [ABSTRACT FROM AUTHOR]

Future Real estate tax assessment and evaluation systems play a significant role in supporting public services and digital economy transformation. To automate and integrate complicated tax procedures, an intelligent taxation model is required. This research develops an automated hybrid deep learning neural network by integrating a multilayer perceptron (MLP), bidirectional long short-term memory neural network (BiLSTM) and attention mechanism (AM) model which is limited for non-stationary, non-linearity real estate data offering superiority, interpretability, and dependability. The model has low error rates and great accuracy. The automated taxation model will enhance real estate tax inspection offices' efficiency by allowing for precise future tax base assessments and values. Deep learning neural network (DLNN) approaches can improve real estate price estimates and lead to more accurate tax assessments. The suggested model outperforms other benchmark price predictors (93%-98%) across many datasets and can be used for real estate taxation and inspection offices. The approach is useful for automated real estate price prediction and taxation applications. This research study proposes a revolutionary strategy that employs a hybrid deep learning neural network DLNN and challenges the conventional approaches to real estate tax base assessment future trends. [ABSTRACT FROM AUTHOR]

We ask how fiscal deficits are financed in environments with two key features: (i) nominal rigidity, and (ii) a violation of Ricardian equivalence due to finite lives or liquidity constraints. In such environments, deficits can contribute to their own financing through two channels: a boom in real economic activity, which expands the tax base; and a surge in inflation, which erodes the real value of nominal government debt. Our main theoretical result establishes that this mechanism becomes more potent as fiscal adjustment is delayed, leading to full self‐financing in the limit: if the monetary authority does not lean too heavily against the fiscal stimulus, then the government can run a deficit today, refrain from tax hikes or spending cuts in the future, and still see its debt converge back to its initial level. We further demonstrate that a significant degree of self‐financing is achievable when the theory is disciplined by empirical evidence on marginal propensities to consume, nominal rigidities, the monetary policy reaction, and the speed of fiscal adjustment. [ABSTRACT FROM AUTHOR]

This paper shows that OECD's Pillar Two may increase employment and investment in low-tax countries due to the Substance-based Income Exclusion (SBIE). The SBIE allows to tax-deduct payroll costs and user costs of tangible assets twice from the tax base of the top-up tax owed by subsidiaries in low-tax countries. Consequently, it implies that a 15% minimum corporate tax for low-taxed subsidiaries is not achieved if the SBIE is positive. We show that Pillar Two dampens tax-motivated transfer pricing, but changes the employment, investment and import incentives, and that for a sufficiently large cost share of labor and/or capital, the SBIE is equivalent to a production subsidy. [ABSTRACT FROM AUTHOR]

Formalizing firms can potentially increase the tax base, expand safety and social protections for workers, create good jobs, and promote firm growth. However, the costs and processes of formality may be too challenging for some firms to bear. Thus, informal firms may not be able to survive the transition to formality, and attempts to expand formality through more intensive enforcement may be harmful and counterproductive to job creation and growth. This paper investigates the potential for currently informal firms to formalize in Egypt. The paper compares the characteristics of formal and informal micro and small nonagricultural firms and identifies the extent of similarities and potential for formalization. The analysis finds that, beyond firm size and whether the firm operates in a fixed establishment, the basic and easily observable characteristics of firms are not closely linked to formality. Firm age, productivity, and owner characteristics, such as education, are strongly predictive of formality. The predicted probability of being formal is greater than 50% for only about 26% of informal firms, suggesting most firms are not good candidates for formalization. The paper develops profiles (groups and clusters) of similar firms to identify those with a higher potential for formalization. [ABSTRACT FROM AUTHOR]

We examine electoral cycles in tax reforms using monthly data over the period 1990–2018 for 22 advanced economies and emerging markets. We show that governments tend to avoid announcing tax reforms during the months running up to elections. In addition, they become more likely to announce those reforms in the first few months following elections, suggesting that "political capital" and/or "political opportunity" channels play a role in the timing of reforms. These patterns are broad-based regarding changes in the tax base and rates, and for various types of taxes. We also find that the pre-election decrease in the likelihood of tax reform announcements appears to be stronger in emerging markets, and weaker in countries with relatively better institutional quality. Finally, our results indicate that neither fiscal rules nor IMF programs seem to have differential effects on electoral cycles in tax reforms. [ABSTRACT FROM AUTHOR]

Environmental Protection Tax Law (EPTL) is a compulsory environmental regulation measure adopted by China to deal with environmental problems. However, with the advancement of implementation, the EPTL produces a dissimilation effect and damages the realization of the Porter hypothesis effect. The study examines the dissimilation effect of green technology innovation regulated by the EPTL using sample data from heavy pollution firms in China. According to the empirical test results: (1) the coordination between levies and administrations, differential tax rate setting, tax information sharing, definition of the scope of levy and administration, tax declaration counseling, and tax rate level verification produce the dissimilation effect; (2) the Porter hypothesis effect of the EPTL is the most significant in medium-sized enterprises and foreign-funded enterprises. By constructing the research model group of dissimilation effect, this study analyzes the application of environmental regulation in China's social and economic background, thus providing a reference for developing of the green economy. [ABSTRACT FROM AUTHOR]

The real estate tax is the sole property tax in the Czech Republic and has been part of its tax system since its establishment, i.e. since January 1, 1993. The Czech Republic has long been recommended by the Organisation for Economic Co-operation and Development (OECD) to increase the collection of this tax because its yield as a share of gross domestic product (GDP) is one of the lowest among all OECD and EU countries. The lower yield is in part attributable to the manner in which the tax base is determined. The Czech Republic, with the exception of a few minor instances, continues to employ the assessment-based rather than the value-based method of determining the tax base. Furthermore, the Czech Republic is encouraged to use the correction elements at the disposal of municipalities to influence the amount of property tax. This article examines the revenue aspect of real estate tax in the Czech Republic, including the determination of the tax base and the use of correction mechanisms. In light of these considerations, it is evident that the development of the Czech real estate tax system has been influenced by a number of factors, including the introduction of one of the most significant amendments to the Real Estate Tax Act in the country's history. This amendment, known as the consolidation package, was implemented on January 1, 2024 and has had a profound impact on the current legislation. [ABSTRACT FROM AUTHOR]

The vast contest literature disregarded the possibility of optimal contest design with simultaneous attainment of various objectives. The main goal of the current article is to illustrate the potential usefulness of a navigation tool that allows the designer to achieve, simultaneously, multiple objectives in contests between companies (competing for resources/patents/market‐share, etc), based on a unit tax and a lump‐sum subsidy. Our proposal is illustrated applying the most common simple setting of two contestants whose winning probabilities are determined by the simple lottery contest success function (CSF). We focus on seven main objectives: reducing the competition's intensity in terms of efforts: increasing profit for the state treasury; promoting equality between the players in terms of gap between the contestants' efforts, winning probabilities and expected payoffs, and budget and expenditure balancing. We also analyze the possible negative external effects of achieving a particular objective. Our main insight is that a complete differential policy can be used to attain, simultaneously (with two exceptions), all the objectives of the designer. In contrast, the use of a uniform policy, subject to a balanced budget objective, cannot ensure complete equality or maximize profit. It nevertheless guarantees a Pareto‐superior outcome relative to the situation before the designer's intervention. Future research may generalize the findings to any type of contest or CSF and multiple contestants. [ABSTRACT FROM AUTHOR]

The digital economy is changing faster than the law can respond and has challenged legal systems worldwide. In the tax space, the digital economy has undermined traditional tax systems in ways that have created significant tax compliance and enforcement challenges, substantial tax revenue losses, and unwarranted distortions in the market between digital and traditional transactions. These problems are well recognized both in the legal literature and in the public sphere. Unfortunately, the legal reforms that are needed in this space have been slowed by a combination of technical, conceptual, and political impediments. This Article focuses on the digital tax landscape at the U.S. subnational level to demonstrate how those factors are preventing meaningful legal reform and why a novel approach to tax reform may be successful in breaking the current impasse. The difficulty of reform is particularly problematic in the tax context because reform ideally includes multijurisdictional uniformity on fundamental aspects like tax bases, the characterization of digital income, and sourcing rules. Legal reform is complicated enough on a unilateral basis. Asking for uniformity in those reforms across jurisdictions can seem all but impossible. To respond to these issues, many scholars apply a fiscal federalism lens to evaluate whether reform responsibility is better assigned to the U.S. federal government rather than to the states themselves. However, this Article disagrees that the digital tax impasse will be fixed through state or federal efforts alone. Instead, we argue that the conditions in this area of the law may require policymakers to explore a cooperative federalism framework. A cooperative federalism structure represents a middle-ground solution where Congress could use its resources to incentivize interstate uniformity but leave the substantive tax rulemaking to the states. This targeted type of federal intervention would better harness the strengths of both the federal and state governments, preserve state tax sovereignty, and overcome many of the shortcomings of past digital tax reform efforts. [ABSTRACT FROM AUTHOR]

The root dilemma that informs the past, present, and future of US international taxation is the tension between two desiderata: protecting the corporate tax base from erosion and ensuring the competitiveness of US multinational firms in the world economy. This article begins by exploring that tension, discussing the evidence behind these competing policy goals. It then considers the international tax provisions of the Tax Cuts and Jobs Act of 2017. TCJA enacted transformative changes in US corporate tax policy, but it did not resolve long held policy concerns. While research on TCJA is in early stages, evidence indicates that TCJA substantially reduced corporate tax revenues, that TCJA's international provisions (as a whole) raised less revenue than expected, that offshoring and profit shifting remain large policy concerns, that changes in US multinational company competitiveness were mixed, and that underlying trends in wages and investment did not change due to TCJA. While TCJA was unable to resolve the tension between competitiveness and tax base protection, the Pillar 2 international tax agreement shows more promise in that regard. As countries throughout the world implement a "country-by-country" minimum tax on multinational income of 15 percent, this has the potential to disrupt long-standing arguments about international corporate taxation. [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]

Nigeria and many other primary product-based export economies struggle from having enough foreign exchange reserves because it helps them meet their international financial obligations, which include paying for goods and services overseas and maintaining the value of their currency. Sequel to this, this study evaluates the nexus amid government spending and foreign exchange reserves in Nigeria. The study employed VECM to analysis the data obtained from Central Bank of Nigeria and World Development Indicators, 2021 covering 1986-2021. The findings of the study revealed there is cointegration between foreign exchange reserves and other employed independent variables. The coefficient of government spending has a detrimental impact on FORES, as was indicated. Accordingly, a 0.26% decrease in FORES will result from a percentage increase in government spending. The study recommends that efforts should be made to expand revenue-generating strategies while also reducing spending. The current administration should be urged to prioritize and carry out measures that will broaden the tax base, particularly to include economic agents in the informal sector who may be eligible and contribute to increasing tax revenue, in light of the issues raised by the ongoing negative budget balance. encouragement of growth and development driven by the private sector. [ABSTRACT FROM AUTHOR]

This research uses descriptive methods and qualitative approaches. The purpose of this study is to know, understand, and analyze the practice of the local tax implementation process as well as the obstacles that occur and efforts made in achieving regional tax management targets at the Regional Finance and Revenue Management Agency (BPKPD) of Cirebon City. Data collection techniques are carried out by means of interviews with the field of Regional Revenue Planning, Development and Evaluation (PPEPD). By showing the results that, in practice, BPKPD has been in accordance with the implementation of tax management based on applicable regulations. However, there are still decreases in local taxes including billboard tax, street lighting tax, underground water tax, and PBB-P2. Thus, BPKPD needs to make efforts in optimizing its regional tax management. The efforts made are; Conducting socialization for taxpayers in fulfilling their obligations in paying taxes owed. In addition, conducting a supervision system (tapping box) as an effort to report taxpayers' business turnover. Efforts were made, to fulfill the utilization for the facilities and infrastructure of the City of Cirebon. [ABSTRACT FROM AUTHOR]

This article looks at the development and evolution of the income tax nexus rules in New Zealand statutes, and at how these developments are related to the main economic events and other factors that have together shaped New Zealand's income tax base. The primary aim is to identify the sources of the most common income tax nexuses in New Zealand statutes, and the reasons behind substantive changes to them over time. This largely historical research project provides the important contextual background necessary to understanding the inconsistencies in the existing statutory income tax nexus rules and to develop proposals for reform. It also helps advance a scholarly discussion about convergence and divergence of tax systems and tax rules. [ABSTRACT FROM AUTHOR]

This article analyses unemployment protection for platform workers and the self-employed in Hungary. Hungarian legislation lacks a separate, well-designed system for the self-employed and platform workers, who consequently fall under the general unemployment scheme. The Hungarian unemployment scheme is fundamentally a compulsory, Bismarckian-type of unemployment insurance financed by contributions, which acts as compensation for loss of work. The Hungarian legislation also contains a system of services and subsidies that could be considered as a separate protection scheme also addressing unemployment. In this case, the protection provided compensates absence of work, rather than a lack of work. This contribution presents the protection available under Hungarian law for the self-employed and platform workers, via an in-depth analysis of the entitlement conditions, contribution base, and the amount, duration and financing of the unemployment benefit. In this paper we also highlight the difficulties and consequences of the taxation regime for the self-employed and platform workers. As they can pay contributions based on favourable tax rules, these lower social security contributions result in lower unemployment benefits. [ABSTRACT FROM AUTHOR]

Previous empirical studies suggest that fiscal decentralisation, measured by the number of government layers, is associated with less foreign direct investment (FDI). With an improved dataset on the tax autonomy of sub‐federal government tiers, we present evidence that fiscal decentralisation (de facto) does not reduce FDI. If local governments can set their tax rates and bases autonomously, they attract more FDI. Analysing 128,425 corporate cross‐border acquisitions (CBA), between 194 source and 215 host jurisdictions from 1997 to 2021, we find that full taxation autonomy by subnational governments can double the number of CBAs in a given year. These results apply to high‐income hosts and do not depend on specific periods. [ABSTRACT FROM AUTHOR]

The taxation of multinational income is the subject of important policy debates. For example, the recent Pillar One proposal by the Organisation for Economic Development and Cooperation (OECD) would shift taxing rights from countries in which value is created to countries where it is realized. This study develops and analyzes a model in which a multinational firm creates a valuable intangible asset, referred to as a brand. The brand is developed in one country and generates future positive residual profits in three countries. At the industry level, these residual profits are competed away by many firms that try to create the brand, only one of which succeeds. It compares various methods of allocating multinational profits for tax purposes. Separate accounting using an arm's length royalty that taxes income based on where value is created satisfies the criterion of distributional neutrality. Other methods that allocate some or all income based on where value is realized violates distributional neutrality. [ABSTRACT FROM AUTHOR]

The study identifies the sources of convergence/divergence of Russian regions in per capita budget revenues in the period 2010–19. Budget inequality is assessed using the Theil–Bernoulli index and then decomposed by stages of budgeting and sources. The research shows that inequality, initially formed at the production stage, more than doubles at the stage of tax collection due to the progressiveness of the tax rate in relation to the tax base in the Russian regions. The tax distribution system makes the largest contribution to the convergence of Russian regions in terms of per capita budget revenues, while the contribution of the budget transfer system decreases over time due to its ever growing deviation from the real position of the regions. [ABSTRACT FROM AUTHOR]

In the 1990s there was a great deal of interest in the study of the role of endogenous market structure under oligopoly in the characterization of emission taxes. This interest was instrumental in providing policy guidance on the design of emission taxes based on market characteristics. However, the literature has been silent on offering policy recommendations on the design of emission taxes under endogenous market structure in the presence of new firm acquisitions. We build a model where new firms enter the market where some are acquired by an incumbent multi-plant firm, altering the initial market structure. In this framework, we characterize the second-best emission tax and examine the role of the resulting market structure, in particular the role of acquiring more/fewer of the new firms, in the optimal design of emission tax. We argue that, under certain conditions, the acquisition of new firms may lead to higher taxation consistent with the Pigouvian rule or even exceed marginal damages. Our contribution is at the intersection of emission tax design and M &A (new firm acquisition) literature. [ABSTRACT FROM AUTHOR]

Electricity is an important ingredient for development; however, inadequate electricity supply and its frequent fluctuations adversely affect the productivity and profits of small and medium enterprises in sub-Saharan Africa (SSA). In turn, the adverse effects pose challenges to economic growth and subsequently narrow further the low tax base in the region. Information regarding the macroeconomic effects of electricity fluctuations on the tax base in SSA is limited, thus calling for a detailed and refined study of this nature to analyse the effect of electricity fluctuations on the tax base in SSA. A bias-corrected linear dynamic estimator is employed for the analysis using a panel dataset for 41 SSA countries from 2000 to 2022. The results show that electricity consumption is positively related to the tax base in SSA while electricity fluctuation creates fiscal losses in terms of narrowing the tax base. Specifically, gross capital formation and informal economic activities are adversely affected by electricity fluctuations. This is a dramatic dampening effect that requires policy attention. The results indicate that the African governments in SSA need to increase investments in (including renovation of) the electricity infrastructures and diversify sources of energy into visible and tangible levels. This is because unreliable supply of electricity denies these countries the benefit of digital transformation, especially internet access. Sustaining the pace of stable and reliable electricity is paramount for economic growth and the growth of tax revenue in SSA countries. The article offers a highlight in energy policy review to include reliability as a prime concern for elevating economic growth and tax base in SSA countries.

This paper analyzes how emigration impacts fiscal gap of population-exporting region in the long term. We construct a general equilibrium model of emigration and fiscal gap and make empirical verification using two-step system GMM model. Among the major lessons from this work, five general and striking results are worth highlighting: (1) the economic losses of emigration are the immediate cause of widening the fiscal gap. (2) in the short and long term, emigration can expand the fiscal revenue gap through the superimposed effect of tax rate and tax base. (3) the gap in fiscal expenditure is widened by the outflow of people in the short term. However, local governments would change the strategy to keep the spending gap from widening in the long run. (4) a positive impact of emigration on the fiscal gap. the more severe population emigration, the larger the fiscal gap. (5) when the trend of emigration becomes irreversible, the subsequent efforts of local governments to expand fiscal expenditure for attraction population would not only fail to revive the regional economy, but aggravate the expansion of fiscal gap. The contribution of research is twofold. On the one hand, it fills the theoretical gap between emigration and fiscal gap because previous studies have paid little attention to the fiscal problems of local government of population outflow. On the other hand, the selection of Northeast China that has been subject to long-term out-of-population migration is good evidence to verify this theory, which is tested very well using the 2S-GMM model. The comprehensive discussion on the relationship between emigration and fiscal gap is helpful to guide those continuous population-exporting regions that are facing a huge fiscal gap how to solve the fiscal gap and unsustainability from the perspective of fiscal revenue and expenditure. [ABSTRACT FROM AUTHOR]

Fiscal decentralisation is a vital trend in developing the local finance system in Ukraine and EU member-states. Decentralisation processes have demonstrated their effectiveness in terms of more effective allocation, distribution, and spending of taxpayers' money. This article aims to evaluate the level of revenue fiscal decentralisation and tax autonomy in the EU member-states and Ukraine as essential priorities for ensuring the financial capacity of local self-governments and to determine how to develop local finance in the medium term. We analysed in depth the peculiarities of local budget revenues and found that state budget transfers prevailed over tax revenues from 2001 to 2022. Among the European countries, the Nordic countries, and the countries with the three-levelled budgetary system (Germany and Spain) had the highest level of fiscal decentralisation regarding their own revenues. Taking the sub-sample of Central European countries into account, the budget systems of Ukraine, the Czech Republic and Poland were the most decentralised ones. The highest level of tax autonomy characterises the Nordic and countries with the three-levelled budgetary system (Belgium and Spain). This indicator is low in Ukraine and needs to be increased in the medium term. The authors proposed ways to increase local self-governments' financial capacity: to introduce a joint model for State tax service and local self-governments in property tax administration, use the estimated value of real estate instead of the real estate area as a tax base for property taxes, expand the local tax digitalisation process. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell 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 article is about the first decade of Base Erosion and Profit Shifting (BEPS) projects and their impact on the architecture of international tax. The two BEPS projects promised fundamental shifts to the allocation of taxing rights between nations, abandoning fundamental building blocks of international tax such as the company as a separate entity, the PE threshold for asserting taxing rights and arm's length pricing of intra-group transactions. This article argues the base erosion projects have failed to deliver a new architecture of international tax, and what will be delivered instead is not especially appealing. [ABSTRACT FROM AUTHOR]

The corporate alternative minimum tax, enacted as part of the 2022 Inflation Reduction Act, intends to impose a minimum level of taxation on profitable large corporations using financial statement income as a tax base. Although both alternative tax bases and the usage of financial statement income in taxes have a long history in the United States, the tax represents a substantial change in the current corporate tax law. Although the corporate alternative minimum tax is predicted to raise billions of dollars from a small subset of the largest corporations, its design raises concerns about long-term efficacy. In this article, we summarize the development of the corporate alternative minimum tax in light of its historical predecessors and compare its design against accepted standards of good tax policy, ultimately identifying multiple inadequacies in its construction and implementation. We conclude by making policy recommendations. JEL Classifications: H21; H25; K34. [ABSTRACT FROM AUTHOR]

Tax havens are often connected to growth in tourism, as finance and tourism conveniently share infrastructural prerequisites. This paper addresses the detrimental impacts of a tax haven development strategy adopted by small open economies in relation to the development of their tourism industry. Utilizing the synthetic control method, we find that since the 2016 Panama Papers scandal, Panama's tourism exports have fallen relative to an estimated counterfactual level that would have otherwise been attained. Moreover, based on an analysis of panel data drawn from 20 small open economies, we find that in the long run, the growth of the financial industry crowds out the tourism industry. Our findings warn tourism practitioners, based in tax havens, that they face an additional risk linked to potential tax scandals. Furthermore, the tourism industry may suffer reputational harm due to tax haven blacklisting and the crowding out of productive resources by the financial industry. JEL classifications: F43, H26, O57, Z32 [ABSTRACT FROM AUTHOR]

Objective: To examine the behavior of the effective tax burden on the profits of Brazilian banks, comparing Effective Tax Rate [ETR] proxies in the short and long terms. Tax aggressiveness is considered the ability to present/maintain ETR below the nominal rate, regardless of whether it complies with the legislation. Method: Analyses were performed using an illustrative example and descriptive statistics of four variations of the ETR--Gaap, Adjusted Gaap, Current, and Adjusted Current--over one, five, and ten years. Results: Tests with data from 2000 to 2022 show that the ETR ranges between 26% and 48%, on average, depending on the proxy and measurement period. The results suggest that banks adopt tax-planning strategies and can defer tax payments in the long term. Gaap measures proved suitable for analyzing tax aggressiveness, as the effects of temporal differences do not influence them. Contributions: This study contributes to the literature on tax aggressiveness, especially in the banking sector, suggesting proxies adapted to the Brazilian context to capture the banks' ability to avoid taxes. It also supports recurring discussions, including in political terms, about the level of tax burden on the banking industry. [ABSTRACT FROM AUTHOR]

This study aims to examine the impacts of crises on the tax base of fiscal revenues from the perspective of taxpayers during Bulgaria's economic recovery post-pandemic. The applied research method involves a survey among individuals and legal entities, followed by data analysis using IBM SPSS. The findings confirm the specific intensity and direction of various macroeconomic factors ranging from crises to opportunities for economic recovery. Notably, the pandemic has significantly eroded the tax base in Bulgaria, primarily through reduced sales, compounded by political instability domestically and the war in Ukraine. Conversely, respondents positively evaluate business support measures during the pandemic and anticipate potential benefits for taxpayers upon the country's accession to the eurozone. [ABSTRACT FROM AUTHOR]

Nearly every county in Pennsylvania uses the base-year system to assess properties for purposes of ad valorem property taxation. Because counties infrequently reassess under the base-year system, its continued use results in taxpayers bearing unequal tax burdens, thereby violating federal equal protection and state uniformity jurisprudence. To have an assessment scheme that passes both federal and state constitutional standards, Pennsylvania must reform its assessment practices by mandating regular countywide reassessments and providing for greater state oversight. While academic publications have previously contemplated whether individual components of Pennsylvania assessment law are constitutional, none have scrutinized the entire system. Pennsylvania courts and the state legislature have failed to take appropriate action to fix the property tax system. Pennsylvania courts' reluctance to strike down the base-year system as an unconstitutional violation of the Pennsylvania Uniformity Clause has further exacerbated the issues arising from the system and the state legislature has not remedied the broken statutory scheme. Pennsylvania must ensure uniform taxation among properties in each county by eliminating the base-year system. [ABSTRACT FROM AUTHOR]

Accurate and efficient valuation of property is of utmost importance in a variety of settings, such as when securing mortgage finance to purchase a property, or where residential property taxes are set as a percentage of a property's resale value. Internationally, resale based property taxes are most common due to ease of implementation and the difficulty of establishing site values. In an Irish context, property valuations are currently based on comparison to recently sold neighbouring properties, however, this approach is limited by low property turnover. National property taxes based on property value, as opposed to site value, also act as a disincentive to improvement works due to the ensuing increased tax burden. In this article we develop a spatial hedonic regression model to separate the spatial and non-spatial contributions of property features to resale value. We mitigate the issue of low property turnover through geographic correlation, borrowing information across multiple property types and finishes. We investigate the impact of address mislabelling on predictive performance, where vendors erroneously supply a more affluent postcode, and evaluate the contribution of improvement works to increased values. Our flexible geo-spatial model outperforms all competitors across a number of different evaluation metrics, including the accuracy of both price prediction and associated uncertainty intervals. While our models are applied in an Irish context, the ability to accurately value properties in markets with low property turnover and to quantify the value contributions of specific property features has widespread application. The ability to separate spatial and non-spatial contributions to a property's value also provides an avenue to site-value based property taxes. [ABSTRACT FROM AUTHOR]