Search

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]

The article discusses a recent court case, GSS Holdings (Liberty) Inc. v. United States, which highlights the indistinct boundaries and challenges of applying the substance-over-form doctrines. The United States Court of Appeals for the Federal Circuit reversed the decision of the United States Court of Federal Claims, stating that the Claims Court had incorrectly conflated the step transaction and economic substance doctrines. The dissenting opinion argued that the substance-over-form doctrine should be applied instead. The article provides historical context on the development of these doctrines and explains their purpose in allowing courts and the IRS to reject a taxpayer's characterization of a transaction that seeks unintended tax benefits. [Extracted from the article]

This study examines the influence of the reduction in value-added tax (VAT) rates in China during 2018 and 2019 on corporate financialization. By employing a difference-in-differences model and utilizing data from Chinese A-share listed companies between 2017 and 2020, we assess the effects of tax reduction policies. Moreover, it achieves this outcome through three main pathways: alleviating financing constraints, boosting fixed asset investment, and weakening corporate financial arbitrage motives. Further analysis demonstrates that the inhibitory effect of VAT rate reduction on corporate financialization is more pronounced for non-manufacturing companies, businesses reliant on the basic tax rate as their primary revenue source, companies with low intermediate input rates, and those with a strong ability to shift the tax burden. Additionally, debt financing costs play a crucial role in moderating the relationship between tax reduction policies and corporate financialization. The conclusions drawn from this study provide valuable empirical evidence that can contribute to the refinement of VAT reduction policies and the prevention and resolution of financialization at the micro-level. [ABSTRACT FROM AUTHOR]

The purpose of the article is to evaluate the importance and relevance of fundamental values, beliefs to Ukrainian citizens in the context of full-scale invasion of Ukraine. The research assessed the worldviews and beliefs of respondents that have changed in Ukraine regarding the European Union's values commitment. An online survey of Ukrainians' worldviews of European values perceptions was conducted for Ukrainian citizens in all regions in 2022. The assessment of Ukrainian citizens' values shows the growing tendency of Ukrainian citizens to adhere to the European Union values. The study demonstrates dissatisfaction of citizens with the pace of Ukrainian integration into the European Union. Economic values estimations show the dissatisfaction with fiscal freedom and tax burden in Ukraine. The study's findings prove how important it is to implement political and legal changes to build a civil society, democratic institutions, and a state that protects property rights and the rule of law. [ABSTRACT FROM AUTHOR]

This paper examines the determinants of residential CO2 emissions, which are not covered by the European Union Emissions Trading System (EU ETS), in 19 European countries between 2000-2017. Using both static and dynamic panel models, we found strong relationships between CO2 emissions per capita, GDP per capita, energy prices and heating needs. We then assessed the impact of European carbon taxation and show that a €20/tonne CO2 tax lowers emissions by 1% on average. We found that this tax affects countries differently in terms of tax revenue-to-GDP ratio. Poland and the Czech Republic would have to pay the highest contribution, and Portugal and Denmark the lowest. Finally, we propose a scenario that equalizes countries' tax burdens. We show that, were Europe to redistribute all tax revenues, the main beneficiaries would be Poland and Belgium, while Denmark and Luxembourg would have to pay a surtax. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to determine whether the way competitiveness is measured matters, as well as to analyze the relationship between tax burden and economic competitiveness using a variety of model specifications. Design/methodology/approach: This paper uses statistical models aimed at finding the relationship between taxes and different measures of economic competitiveness, such as gross domestic product per capita, employment and a third-party competitiveness index. Other variables are also considered, and statistical procedures such as lag specifications and "white period" errors are used to address problems of endogeneity and serial correlation. Findings: The models find no robust relationship between taxes and competitiveness. Certain models find correlations between the tax burden of specific income groups with economic competitiveness, but these vary in direction and are difficult to interpret. This follows past research, which shows different results depending on the period analyzed, measure of competitiveness and other variables used. Originality/value: This paper looks at many of the different measures of competitiveness, control variables and periods that are used in the previous literature and shows how any changes to these model specifications cause inconsistent results. This paper highlights that, because results can vary greatly depending on the model, researchers and policymakers must be careful when drawing any conclusions from relationships between taxes and economic competitiveness. [ABSTRACT FROM AUTHOR]

As an important source of local fiscal revenue, will enterprise tax be affected by local government debt? What role do the government's tax collection and management motives and behaviors play in this effect? By investigating the impact of local government debt on the actual tax burden of enterprises, this study shows that local governments have a trade-off of tax collection in the process of resolving the debt repayment pressure. The study finds that, in general, the expansion of local government debt has increased the actual tax burden of enterprises, which is mainly reflected in non-state-owned enterprises and enterprises that are collected and managed by the local tax department. The results of the mechanism test show that local debt pressure will encourage local governments to adjust the intensity of tax collection and tax incentives, and then increase the level of tax burden of enterprises in the jurisdiction. Furthermore, the heterogeneity test that distinguishes the institutional environment shows that there are significant differences in the taxation behavior of local governments and the impact of the corporate tax burden in different regions. Specifically, the strict tax behavior of local governments is more significant in regions with better institutional environment, while regions with worse institutional environment, due to the lack of market competitiveness, are more inclined to provide a relaxed tax collection environment to enterprises in their jurisdiction, so as to stabilize the tax base and resolve debts through long-term tax growth. In the context of unbalanced regional development, this study provides empirical evidence that the expansion of local debt affects the taxation behavior of local governments, and then affects the actual tax burden of enterprises in the jurisdiction, which is helpful to understand the government behavior during the transition period of developing countries, and provides policy implications for improving the public debt management system, creating a fair tax environment, and promoting high-quality economic growth. [ABSTRACT FROM AUTHOR]

The effective and efficient management of financial systems and resources fosters a socioeconomic climate conducive to technological and innovative advancement, thereby fostering long-term economic growth. The study used panel data from 72 countries classified as less financially developed between 2009 and 2017 to examine the role of economic freedom and inclusive growth in financial development. For the long-run estimations, we utilised the linear dynamic panel GMM-IV estimator, panel corrected standard errors (PCSE) linear regression method, and contemporaneous correlation estimator, a generalised least squares method. Our analyses indicate that economic liberty, inclusive growth, and capital stock significantly contribute to financial development in a positive manner. Moreover, inclusive growth contributes positively to overall financial development by enhancing economic freedom. Regardless of exogenous and endogenous shocks, we found that the tax burden and investment freedom are negative drivers of financial development as measured by the overall financial development index. In contrast, protection of property rights, government spending, monetary freedom, and financial freedom are positive and significant drivers of economic growth. [ABSTRACT FROM AUTHOR]

The labor force participation rate has become a vital indicator for economies, especially after the industrial revolution. Because of the mass production after the industrial revolution, the necessity of raw materials increased, which also brought a rise in labor demand. Thus, the labor force participation rate and its determinants have become essential subjects for policymakers. The purpose of the study is to find out and evaluate the effect of the tax burden on labor force participation rate in Organisation for Economic Co-operation and Development (OECD) countries. The selected countries are determined in accordance with the availability of the data. Panel data estimations were implemented to data set, and due to cross-sectional dependency and autocorrelation problems, the GLS period SURestimation method and cross-sectional covariance methods were used. The findings revealed that tax burden has a negative and significant impact on the labor force participation rate. [ABSTRACT FROM AUTHOR]

For a long time, governments of all countries have attached great importance to the development of underground economic activities. The reason is that the characteristics of the underground economy are hidden and the information disclosure is not sufficient, which not only distorts the economic data indicators, but more importantly, the existence of the underground economy has led to the loss of a large amount of tax base, affecting the long-term economic development of the country. Whether raising the tax burden rate boosts the tax revenue or expand the scale of the underground economy. In this paper, we use Kuznet Tax Curve (KTC) method to analyze the relationship between GDP and TTR/DTR/ITR. We find that the tax base erosion rate of indirect tax is lower than that of direct tax. In addition, we explore the relationship among economic growth, tax rate and tax revenue and adopt SUR-OLS method and Threshold approach to estimate the response of economic growth on total tax revenue(TTR), direct tax revenue(DTR) and indirect tax revenue (ITR) in Taiwan from 1991-2020. Our empirical research shows that when DTR tax rates are between 12.59% and 13%, an increase in income leads to a decrease, not an increase, in DTR, leading to severe tax base erosion. That is, the relationship between GDP and DTR presents a N-shaped relationship. However, ITR does not exist any tax rate threshold effect. Obviously, with the increase of GDP, ITR also increases. This reflects that the difference of tax structure between direct tax and indirect tax plays a key role in the relationship between tax rate and tax base erosion. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to present the issue of the international systemic competitiveness of the Polish economy. The essence of this concept was shown, as well as the measures and methods of analysis used. The aim of the research was to identify the factors that had the greatest impact on the formation of the international systemic competitiveness of the Polish economy. Design/methodology/approach: An econometric model was constructed to explain the shaping of the value of the dependent variable (gross domestic product [GDP] per capita) in the years 2004–2019. For this purpose, explanatory variables were used selected from among the measures of the international systemic competitiveness of the Polish economy. The developed econometric model was verified to check its practical usefulness. This process was performed using the Gretl program. The research also used the Pentagon Model of Macroeconomic Stabilization, which was used to examine the general economic development of Poland because of which it is possible to conclude about the international systemic competitiveness of the economy. Findings: In the analyzed period (2004–2019), the international systemic competitiveness of the Polish economy was to the greatest extent conditioned by such factors as government integrity, tax burdens and investment freedom. It is significant that the integrity of the government had a negative impact on the value of GDP per capita. Practical implications: The results of the conducted research may be particularly useful for the institutional sphere. They indicate systemic factors that had the greatest impact on the prosperity of Polish society in the analyzed period. This enables the weakest elements of the policy to be identified and improved. Proper applications and appropriate corrective actions will have a positive economic effect. Originality/value: So far, it has not been possible to develop/indicate a uniform and generally accepted measure and method of analyzing international systemic competitiveness. Therefore, all attempts to assess and measure systemic competitiveness have a high research value. The vast majority of studies on the international competitiveness of the economy focus only on assessing its level (growth, decline and comparison with other countries). When building an econometric model (based on the 2004–2019 time series), the author also checks the impact of its individual components, not only its level. On this basis, it can be deduced, which factors influenced the competitiveness in a given period to a greater extent, positively or negatively. [ABSTRACT FROM AUTHOR]

The Internal Revenue Code (IRC) imposes an excessive income tax burden on many low- and mid-income performing artists. Low- and mid-income performing artists suffer a higher effective income tax burden than similarly situated taxpayers who are not performing artists and may also suffer a higher income tax burden than high-income performing artists. This inequity is due to a failure in the Internal Revenue Code, which has been significantly exacerbated by the Tax Cuts and Jobs Act (TCJA) passed in 2017. This Article makes three key assertions: First, it shows that the IRC and the TCJA do not account for the unique employment structures of the entertainment industry, resulting in low- and mid-income performing artists having to pay income tax on more than their net income. Second, the Article uses stylized examples to show how current taxation of performing artists fails the standard benchmarks of sound tax policymaking. Third, the paper explores several possible solutions to the problem and calls for the passage of the Performing Artist Tax Parity Act (PATPA), which has been introduced with bipartisan support in Congress several times but has yet to pass. [ABSTRACT FROM AUTHOR]

The purpose of this article is to report tax strategies used in popular products with high taxation, demonstrating the positive and negative impacts caused on companies through changes in tax classifications, productions or product structures to reduce tax costs as a result of the variation in the IPI value. For this purpose, the TIPI Table (tax incidence table on industrialized products) was used, which is a list of products with their respective rates. It is a file, regulated and constantly updated by the Federal Revenue, where the industrialized products, their specific Mercosur Common Nomenclature (NCM) and their respective tax rate are gathered. The application of this table and the reclassification of some popularly known products were studied and analyzed. In this study, it was noticed that such reclassifications allowed a reduction in the tax rates on industrialized products, thus maximizing the results of the companies. Finally, it was recommended that companies, mainly whose products marketed are considered "nonessential", properly carry out the tax classification of products, as there are possibilities to legally minimize taxation, thus increasing the profit margin, reducing sales prices. and consequently generating an increase in sales and revenue. However, in the opposite situation, there may be tax penalties if errors in the tax classifications occur. [ABSTRACT FROM AUTHOR]

The article focuses on comparative measures of property tax equity in Suffolk County, Massachusetts. Topics include a nationwide analysis of property tax assessments and sales data that found regressivity in assessments and property taxe; the importance of considering tax exemptions, such as homestead exemptions, in achieving a progressive property tax system; and the need for the assessment community to critically evaluate the valuation process for property tax purposes.

The movement of people and the movement of money are often discrete. As such, governments can address the effects of each separately. Because residence provides a general jurisdictional basis for state personal income taxation, however, money often moves with people. States must disentangle the two to prevent tax base erosion and improve distributional equity, particularly with many highnet- worth individuals migrating to states with more favorable tax regimes. A state exit tax may be the answer. This Article begins by examining exit tax theory and advancing novel applications of theories that support subnational exit taxation, both domestically and internationally. With a robust theoretical and technical foundation, this Article turns to state and local exit tax design. This discussion examines constitutional constraints to address specific tax base migration challenges—focusing on the justifications, distributional impact, and optimal exit tax design features to address each situation. If a state has a solid theoretical foundation and incorporates proper design principles, as this Article provides, an exit tax can effectively mitigate tax base migration while aligning with prevailing policy goals and avoiding constitutional infirmities. [ABSTRACT FROM AUTHOR]

This paper criticizes the supply-side economic policy promoted by the UK government under Prime Minister Liz Truss. According to the conventional interpretation, the stagnation and productivity crisis in the UK economy is due to the excessive tax burden on large corporations and the tax burden on the richest 1%. If these tax liabilities were reduced, it would increase the profitability of investment, demand and the rate of growth. This would translate into better incomes and higher levels of employment. This story is based on the Laffer curve and associated with the "trickle down" hypothesis, falsified by empirical evidence. Tax reductions for the richest people worsen the distribution of income, and do not raise income or employment. The cause and effect is from profits to investment and growth; not from spending to profits and growth. [ABSTRACT FROM AUTHOR]

E. Inheritance Tax Benefits Non-doms also have the advantage of beneficial treatment for UK inheritance tax (IHT) purposes. United Kingdom The United Kingdom (UK) also provides Brazilians with several immigration options. [Extracted from the article]

The article deals with evaluating the influence of the tax and levy burden of wages on employment and tax revenue. The high tax and levy burden on wages is not favourable for the economy. The analysis results show that the increase in the tax and levy burden of wages has a negative effect on employment. When evaluating the effect of the tax and levy burden on tax revenue, the effect is different from the scope of used deductions. However, the long-term problem of the Czech Republic in comparison with other countries is not the tax burden on labour, but the related levy burden, which increases the price of labour and thus has a negative effect on the labour market from its transnational perspective. The analysis confirms that the Czech Republic remains among the countries with a high levy burden. To achieve the paper's objectives, methods of description, comparison, analysis, synthesis, and regression and correlation analyses are used. The added value and uniqueness of this article is, among other things, the fact that these indicators - effective, respectively, implicit tax rates on labour are calculated depending on the distribution of wages. [ABSTRACT FROM AUTHOR]

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

This paper investigates whether the degree of tax aggressiveness is associated with conditional conservatism in Brazil. After a thorough literature review on accounting conservatism by Brazilian academia and a discussion about tax aggressiveness and accounting conservatism, a literature gap was found because the relationship between a firm's degree of tax aggressiveness and its conditional conservatism had not been investigated previously. Taxable income has a relationship with accounting income in the Brazilian corporate income tax system. Hence, tax planning can affect financial information properties. This study offers a partial explanation of accounting conservatism based on tax issues that contribute to the conservatism and taxation literature. The results suggest that tax strategies that aim to avoid tax burden are related to conditional conservative accounting. Hence, the practice of conditional conservatism in Brazil appears to be linked with tax-deductible alternatives of reducing earnings, which would explain tax planning's association with the degree of conditional conservatism in financial reporting. This finding is relevant to financial reporting users that can consider our results in their analysis and to management that seeks to understand their decisions about tax planning better. For this research purpose, two Basu models (Basu, 1997) were adopted, adapted with tax-aggressiveness controls. The effective tax rate (ETR) was used as a tax-aggressiveness metric, controlling firms with both high and low ETR. The study period was from 2010 to 2019 for Brazilian firms from B3 S.A. - Brasil, Bolsa, Balcão (B3). The findings demonstrate a significant relationship between tax avoidance and conditional conservatism, that is, more tax-aggressive firms tend to use more conservative accounting. [ABSTRACT FROM AUTHOR]

A higher tax burden in individual countries need not always deter investors from investing profitably. Countries use tax burden levels in the form of changes in tax rates to attract foreign investment. The main objective of this study is to examine the tax competitiveness of the Slovak Republic compared to European Union (EU) countries (EU-27) and to evaluate the origin, extent, and form of investments from foreign investors in tangible and intangible assets in the Slovak Republic. To meet this objective, we first calculate the average tax rate for specific crossborder investments coming to Slovakia from all EU countries. To determine tax competitiveness, we compare the calculated effective average tax rate (EATR) with the EATR in individual EU countries. Finally, we perform an analysis of EATR and foreign direct investment (FDI) using cluster analysis, which categorises EU countries and evaluates their tax competitiveness. The analysis and comparison of values are conducted for the year 2019, while the countries are divided into old (EU-15) and new (EU-12) EU member countries. The article concludes that the calculated Slovak EART for cross-border investment is more profitable for old EU member countries and is, thus, more tax-competitive versus investors' countries of origin. We can further state that the tax burden is among the most important indicators for investors and, thus, a lower EATR value than that in an investor's country of origin contributes to the inflow of equity participation of FDI in Slovakia. [ABSTRACT FROM AUTHOR]

The emergence of the industrialization phases in the textile sector has made it important to reveal the unique aspects of the Turkish weaving tradition and the synthesis it has reached, from silk and wool weaving to cotton and linen weaving. The causal ties of the Ottoman weaving tradition with the past and the historical projections that have reached today have not yet been evaluated from a general point of view. This evaluation can only be possible with the researches to be carried out on the sub-types of the weaving tradition. In this context, it is important to reveal the general adventure of the Ankara shawl, which is referred to as the Engürü shawl in the Ottoman archive documents. Ankara shawl is the most important production commodity in Ankara, from the end of the 17th century to the 19th century and is the most demanded fabric by elite groups after quality silk fabrics. The first document in which the Ankara shawl was identified is dated 1715, while the last document is dated 1863. After 1790, the density of documents related to the Ankara shawl has been increasing. There are many signs that suggest that the Ankara shawl weaving technique was produced as a result of technical progress in the weaving technique of mohair fabric. Ankara mohair fabric is a type of weaving completely unique to the weaving technique from yarn raw material. Ankara shawl is a fabric woven from the same thread as mohair, in a period from the end of the 17th century to the first half of the 19th century, it was understood that summer clothes were made from Ankara shawl in cities such as Istanbul and Bursa. Navy and Saray are among those who demand the Ankara shawl. It has been determined that a white Ankara shawl was produced as a flag fabric for the Navy. The role of Muslim women in the production of fabric in Ankara is also reflected in the documents. Since the 19th century, important regulations regarding the production of shawls have been made in Ankara against imported shawl fabrics, but these measures have not been successful. It is also seen in the documents that shawls of European origin started to be in demand in Ottoman cities, especially in Istanbul, since the second half of the 19th century. It is understood that there was a very rapid decline in Ankara shawl production between 1830 and1840. Considering that the problem was due to the instability of quality and price instability, the Ottoman administration wanted Ankara shawl to be produced in standard size and quality and to be dyed and stamped in the miri dyehouse in order to avoid tax loss. For quality and price stability, since the second quarter of the 19th century, fixed places were determined in cities such as Istanbul and Bursa, with the practice of monopolization, and control over the supply was established. While the place determined in Istanbul within the framework of the monopolization application is Yenihan, it is the Old Yenihan in Bursa. Although the heavy tax burden on the Ankara shawl is felt in the content of the statements in the documents, it was not aimed to protect a certain group by bringing monopoly with the practice of monopolization, but rather quality and price stability. Objections to the fixed space application determined afterwards were reflected in the documents on the grounds that it hindered the production ability. Ankara shawl; varieties such as hünkâri, berce, kaba shawl, harcialem mediocre shawl and edna shawl and colors such as narcissus, canary, samuri, squirrel, brown, blue, yellow shawl and white shawl were determined. [ABSTRACT FROM AUTHOR]

For example, Michigan imposes a value-based personal property tax on "Solar Energy Systems."[10] In that case, a preset depreciation factor is applied to a project's original cost to reach the "true cash value", which is ultimately subjected to local property tax rates. B. Sales and Use Tax Like property tax, most states follow similar paths for sales and use tax. It provides a short background on the components that make up wind and solar projects, summarizes commonly applicable taxes, including property tax and sales and use tax, and concludes with a brief discussion of why developers should care about state and local taxation. Between a rapidly changing planet, generous federal tax incentives, and high demand, wind and solar projects are experiencing a major growth spurt.[1] In the summer of 2010, the United States had a total net capacity of 39,134.5 megawatts in utility-scale wind energy.[2] By the summer of 2020, that number climbed to 118,378.7 megawatts, more than a 200% increase in just ten years.[3] Similarly, in the summer of 2010, the United States had a total net capacity of just 393.4 megawatts in utility-scale solar energy.[4] Ten years later, however, that number reached 46,306.2 megawatts, a gigantic 11,600% increase.[5] As wind and solar continue to grow, state taxing authorities are examining, and reexamining, how best to tax these unique projects. [Extracted from the article]

Automated valuation models (AVMs) have been demonstrated to help governments promote more equitable ad valorem property tax assessments at reduced costs and higher efficiencies than traditional appraisal methodologies. To learn whether and how AVMs are being used in the assessment process, the Lincoln Institute of Land Policy in partnership with the International Association of Assessing Officers (IAAO) conducted a survey in 2019. Responses from assessment offices using regression-based AVMs demonstrate their widespread benefits to the assessment process, including increased accuracy, uniformity, and equity at lower costs and higher efficiencies. The adoption of AVMs has been more common among larger jurisdictions and jurisdictions with more frequent valuation cycles. Still, with only 16% of respondents reporting regression-based AVM use, there remain many assessment offices that could benefit from implementing the method. The most common reason for not adopting AVMs is the belief that a current valuation approach works just as well, if not better. Additional challenges to AVM adoption include difficulty explaining results to taxpayers and staff and a lack of budget resources and technical expertise to implement and maintain the models. Greater familiarity with AVM technology will lead to more widespread use, ultimately resulting in greater efficiency and equity in property tax regimes. [ABSTRACT FROM AUTHOR]

The US has experienced a joint decline in corporate tax rates and startup rates in recent decades. We study how changes in corporate taxes affect startup rates in a firm dynamics model with occupational choice. A change in profit taxes has ambiguous effects on firm selection, and therefore on the startup rate. Quantitatively, the observed fall in US corporate tax rates generates, at most, one‐fifth of the startup rate decline. Sensitivity analysis suggests that this number is best interpreted as an upper bound, indicating that corporate taxes did not play a major role in the startup rate decline. [ABSTRACT FROM AUTHOR]

This paper estimates the Laffer curve through a comparative statical analysis and an econometric exercise. Starting from a microeconomic specification, it first analyzes the distortion caused by an indirect tax and the welfare implications of maximizing tax collection. Then, using data on real per capita tax revenue and the tax rate, an estimate of an econometric model to calculate the optimal tax rate in Colombia is made. The results show that Laffer's postulates are proven with an optimal rate of 32% and suggest that the government has a margin of almost 12 percentage points. [ABSTRACT FROM AUTHOR]

Pilot projects in the past that have experimented with a Guaranteed Basic Income (GBI) in Manitoba and Ontario, and a recent study of the feasibility of a GBI in British Columbia, indicate that provinces are not in an ideal position to successfully implement an affordable and effective GBI. However, a GBI implemented by the federal government, financed by eliminating the GST credit and lowering personal tax exemptions, could be both effective and affordable. It could also do so without requiring the elimination of those provincial social assistance programs that are more deeply targeted toward people’s needs. By using its revenue powers, the federal government could create more fiscal capacity for the provinces to provide other cash and in-kind social supports, allowing for greater provincial benefit targeting. The federal government’s centrality in designing and implementing tax structures and collecting tax revenue make it singularly suitable for administering and delivering a GBI. Financing the GBI by eliminating the modest GST credit and lowering the current basic personal income tax exemption could provide a significant reduction in the rate, depth and intensity of poverty in Canada, without imposing an excessive tax burden on Canadians. If provinces use the GBI as a replacement for certain less-targeted provincial social assistance income transfers, the freed-up payments and reduced caseloads could also allow provinces to target more effectively those needs not addressed by the GBI. The recent COVID-19 pandemic exposed longstanding gaps in Canada’s incomesupport frameworks, with lower-income workers facing exceptional economic vulnerability. At the same time, the Canadian Emergency Response Benefit proved edifying in terms of how to best design a basic-income program. In addition, the federal government’s experiences with the poverty-reducing impacts of the Canada Child Benefit, the Old Age Supplement and the Guaranteed Income Supplement have moved Canada closer than ever to a workable GBI. While it comes with additional costs, those costs will be less burdensome than many GBI skeptics might believe. They must also be put into perspective, by comparing them against the costs of current and, in many cases ineffective income transfers and, just as importantly, against the human cost of leaving more Canadians living in poverty. [ABSTRACT FROM AUTHOR]

The Federal Income Tax Code has become increasingly complex over time with the implication that many taxpayers no longer understand the connection between their life decisions and their taxes. Some commentators have suggested that increasing computational complexity may be attributable in part to the proliferation of tax preparation software that renders such complexity manageable at filing time, but otherwise does nothing to mitigate the "black box" nature of the tax system. While such complexity and opacity undercut explicit incentives embedded in the Code, make planning more difficult, and undermine political accountability for taxes, they may also reduce the inefficient distortion or deadweight loss of the income tax, particularly with respect to higher-income taxpayers. This Article argues that technology represents a potential response to tax complexity and opacity as well as a contributing factor. It argues that tax planning software can and likely will be used to restore "functional transparency" to the Code, for good or bad, alerting taxpayers to explicit incentives, allowing taxpayers to easily determine the tax consequences of their life decisions, and providing a means for improving fiscal citizenship, but also highlighting tax burdens in such a way as to increase deadweight loss. This Article also makes the case for government provision or subsidization of planning software targeted at lower-income taxpayers. Such a targeted approach will help level the tax planning playing field and improve the take-up of tax incentives by this population, while avoiding facilitating social welfare reducing tax planning by higher-income taxpayers. [ABSTRACT FROM AUTHOR]

Background: Bacterial infections are one of the most common causes of morbidity and mortality in community and hospital settings. The acceptance of the treatment imposes heavy economic burden on the patients. Due to improper drug policy, different costly preparations of the same brand are ordered and tendered, which pose a sheer wastage of money, ultimately causing burden on tax payers. Aims and Objectives: The present study was planned to evaluate and compare the costs of different brands of various generations of cephalosporin which may be generic or commercial in nature. Materials and Methods: We selected commonly used drugs from different generations of cephalosporins. Cost of drugs (may be generic or commercial or of different formulations) was obtained from latest periodic manuals of Indian Drug Review (INR) and drug today and was analyzed for cost ratio, cost range, and percentage difference among brands from different pharmaceutical companies for oral and parental forms. Correlation among price variations between them was observed by data comparison. Results: Cephalosporins were analyzed for the differences in prices. We not only found wide variation between the cost of generic and commercial preparations but also very wide price range and ratio among the same products from reputed to medium companies. Conclusions: Our study has indicated about the wide differences in the cost of different cephalosporins which are the most commonly prescribed group of antimicrobials. If hospitals across India adopt uniform policy of prescribing cost-effective preparations (brands/generic) only, then the unnecessary economic burden can be significantly reduced. [ABSTRACT FROM AUTHOR]

After a brief overview of development of the protective role of labour legislation (and the need to protect the content of the work relationship instead of formal category of workers), the authors analyse legal regulation of craft activities and the possibility of paying income tax in a lump-sum. Furthermore, the paper examines positive legal regulation of determining the disguised employment (dependent work) with craft activities subject to lump-sum taxation and, consequently, the collection of income tax and related contributions for compulsory insurance based on (disguised) employment. Finally, the need for legal changes is emphasized, implementing a complementary approach (from the standpoint of financial and labour law), to protect both the fiscal interests of the state and the rights of the disguised worker. [ABSTRACT FROM AUTHOR]

The article researches the development state of transport and transport infrastructure in Ukraine over last years. The research findings specify the topicality of the issue solution concerning the enhancement of transport and transport infrastructure in the conditions of structural, energy and financial crises, as well as considering a destructive influence of COVID-19 pandemic, occupation of Crimea, an anti-terrorist operation in East of Ukraine and a full-scale intervention of the Russian Federation started on February 24, 2022. Such methods of improving transport and transport infrastructure development in Ukraine have been offered under the research findings: the increase of public administration level with regard to all aspects of transport infrastructure; the use of proactive management; activation of searches and implementation of investment projects; introduction of an institute of public- private partnership on transport; partial and temporary decrease of tax burden; the development of complex solutions for transport services consumers under the infrastructure areas; optimization of transport pricing, etc. [ABSTRACT FROM AUTHOR]

The objective of the paper is to study how the tax burden arising from an exogenous stream of public expenditures and transfers should be distributed between labor and capital in a scale‐less endogenous growth model, where the engine of growth are successful innovations. Our laboratory is a prototypical quality ladder model with a labor/leisure choice where research and development productivity is decreasing in the size of the economy. Our contribution is to show that even when labor supply has no effects on growth in the long run, it will still be optimal to tax capital for reasonable parametrizations of the model. [ABSTRACT FROM AUTHOR]

Carbon pricing, such as a carbon tax, is an invisible hand that leads to the construction of a sustainable low-carbon society, and precise analysis of the impact of carbon pricing on each sector of the economy is indispensable for its design. In this study, an equilibrium price model based on the 2015 input-output table was used for the analysis of next-generation energy systems (2015 IONGES) and the effect of the introduction of a carbon tax on the price of the industrial sector was assessed. Based on the existing energy-related tax system in Japan, the introduction of a carbon tax is regarded as an increase in the tax for global-warming countermeasures (TGWC) in the petroleum and coal tax (PCT). While existing energy-related taxes are designed to place a relatively heavy burden on the transportation sector, tax reform of the petroleum and coal tax has a relatively large effect on raising prices in energy-conversion and energy-intensive sectors. As a result, the reform of the energy-related tax may promote the introduction of energy-saving technology and decarbonization technology, both in the transportation sector and in a wider range of sectors, and may work to correct the unfairness of the tax burden between sectors. [ABSTRACT FROM AUTHOR]

Corporate taxes play an important role in a firm’s decision-making as they are part of the cost of capital. Thus, understanding the effect of taxes on the performance of firms in the context of frequent tax reforms, as is the case of Colombia, is of great relevance. We used the meta-frontier stochastic techniques, which allow us to estimate in two steps the technical efficiency of firms within each economic sector and between economic sectors in relation to the set of firms in the country. Then, using quantile regression analysis, we estimate both the effect of corporate taxation on firm performance as well as the effect of efficiency on firms’ tax payments. Results indicate that firms in some economic sectors could be benefiting from better production conditions, and that the most efficient firms within each sector paid more taxes as a share of assets. However, when compared to the meta-frontier, firms with higher efficiency paid less taxes, suggesting differences in the firms’ tax burden across economic sectors. [ABSTRACT FROM AUTHOR]

The line between legitimate tax planning and abusive tax positions, while clear in many instances, produces a significant amount of controversy. Judicial scrutiny of close cases has led to the development of a body of loosely related anti-abuse doctrines designed to separate the wheat from the chaff. However, textualist judges have increasingly rejected or limited the use of anti-abuse doctrines out of a concern that such doctrines undermine taxpayer reliance on the law. Critics contend that by rejecting anti-abuse doctrines, these textualist judges legitimate abusive tax shelters and deprive the judiciary of essential tools for curbing abuse. This Note responds to textualists and their critics alike by arguing that textualism is not incompatible with judicial anti-abuse doctrines. After surveying major landmarks in the historical development of the legal system's treatment of tax abuse and considering the Sixth Circuit's approach to the issue, this Note develops an account of judicial anti-abuse doctrines as textually sensitive aids to statutory interpretation. [ABSTRACT FROM AUTHOR]

In response to the high prevalence of overweight and obesity, Mexico implemented a volumetric tax of one Mexican peso (MP) per liter of sugar-sweetened beverage (SSB) in 2014. In contrast to Mexico's volumetric tax design, the United Kingdom (UK) and South Africa (ZA) implemented SSB taxes based on sugar density. This kind of tax is likely to yield larger health benefits than volumetric taxes by imposing a larger tax burden on high-sugar SSB and/or encouraging reformulation. However, sugar-density taxes might yield lower tax revenues. This study aims to simulate the effect of sugar-density taxes as those in the UK and ZA on SSB purchases (in terms of volume and sugar), SSB prices, and tax revenue in Mexico and compare this effect to its counterpart under the current volumetric SSB tax. Additionally, we simulate the effect of sugar-density taxes under different scenarios of reformulation. We conducted all these simulations based on a structural model of demand and supply using household purchase data for 2012–2015 in urban Mexico. We found that the current volumetric one-MP tax led to an SSB purchase reduction of 19% for both volume and sugar and an SSB price increases by MP $1.24. We simulated similar effects under the UK and ZA sugar-density taxes when these taxes were equivalent to the volumetric one-MP tax, and there was no reformulation. When assuming reformulation, the sugar reduction under the sugar-density taxes was up to twice larger than the volumetric one-MP tax. However, we found that the volumetric one-MP tax yielded the largest tax revenue across all tax designs. From a public health perspective, sugar-density taxes are likely to be more effective in tackling the overweight and obesity prevalence in Mexico; however, tax revenue might be lower under these taxes. [ABSTRACT FROM AUTHOR]

Purpose: The present study sought to investigate whether tax management influences the equity cost of Brazilian companies listed in Brazil, Bolsa e Balcão (B3) from 2014 to 2018. Methodology: The study included the analysis of Proxie Book-Tax Differences (BTD) as a tool for identifying tax management, as suggested in the work of Moreira e Silva (2019), as well as the control variables, which are the return on equity (ROE), market value (QTOBIN), company size (LNAT) and company financial leverage (ALV). For data collection, the Bloomberg® database and the Reference Form available on the B3 website were used. For that, it was used the Multiple Linear Regression of the data type in balanced panel, resulting in a final sample formed by 630 observations. Results: Through BTD proxie, referring to the difference between accounting profit and tax profit, and used to capture tax management in this research, it was not possible to identify any relationship with the equity cost. Thus, for the purposes of this research, the theoretical adequacy and the statistical models used did not show that good tax management practices have a positive or negative effect on the equity cost. Contributions of the Study: It is observed that Brazilian studies did not analyze the effect of tax management on the equity cost in Brazilian companies using the Book-Tax Differences (BTD) indicator as a tool for identifying tax management and its influence on the cost of capital. So, this research followed the recommendation suggested by Moreira e Silva (2019), to analyze this cost with another indicator, in this case, Book-Tax Differences (BTD). According to the results, it was not possible to identify any relationship with the equity cost, thus contributing to the consolidation of the findings by Goh et al. (2016) and Moreira e Silva (2019) who present CashETR as the best metric for tax management, given that the results presented using the variables ETR and BTD, demonstrated that the cost of capital required by investors was unrelated to the fiscal aggressiveness of companies. [ABSTRACT FROM AUTHOR]

The article presents the implementation of the results of supporting sectoral entrepreneurship in rural areas as a multifunctional and multi-channel process of formation, attraction, and use of financial resources provided by the rules of the institutional environment of state policy. A methodical approach to the integrated assessment of indicators of the target direction of the involved financial resources of the state and their impact on the development of sectoral entrepreneurship in rural areas is presented. It is proved that the specific criteria that determine the scenarios of consolidation of tax revenues to local rural budgets are minimization of discretion, compensation, and compromise, budget adequacy, complementarities, as well as the sequence of changes in parameters and flexibility of the tax system which allows responding quickly to changes in the institutional environment of state support of sectoral entrepreneurship. Indicators of state support for risk insurance of sectoral entrepreneurship, volumes of accumulated revenues of local budgets in decentralized rural areas of Ukraine are analyzed. A cognitive model is proposed. It determines the hypothetical ability of the multifactorial system of the institutional environment of state policy to influence the level of financial capacity of sectoral enterprises, taking into account the tax burden and targeted use of state financial resources for production, processing, and storage of agricultural products as well as to update the technological process. [ABSTRACT FROM AUTHOR]

Taxes are one of the things all companies have to pay. However, taxation is a big issue for many people in today's uncertain times. The paper aims to compare taxes in Central European countries (the Czech Republic, Slovakia, Poland, Hungary, Austria, and Germany) in the years 2016-2020 and to make predictions for next years. The data used were obtained from publicly available resources - Eurostat and OECD. The situation in the individual states is compared using time series analysis, i.e. by observing the data. Based on the observation, the results are obtained using Excel. The results show that Central European countries are doing better when compared to the other EU countries in terms of taxation (i.e. lower taxes). The results also show the existence of differences between the states of the former Eastern and Western blocs in terms of taxation. According to the estimates of the taxation for the next years, taxation in Central Europe will increase slightly or remain the same in the coming years. The paper also proposes further research including a larger number of countries. [ABSTRACT FROM AUTHOR]

Background: Since 2004, Brazil has had a national policy for occupational health and safety. This policy means companies' tax burden is altered according to the numbers of work-related accidents and ill-health amongst their workers. In 2010, a multiplication factor was introduced to this policy, called the Accident Prevention Factor. The idea of this new multiplication factor is to encourage individual employers to take initiatives to prevent accidents and ill health in the workplace. This study was designed to investigate the incidence of work-related accidents and ill-health in Brazil according to their causes, their severity, and the economic activity in which they occur, and to compare the data before and after the introduction of the Accident Prevention Factor.Methods: An ecological study was conducted by analyzing the time series of work-related accidents/ill-health between 2008 and 2014 from the Brazilian social security system (Previdência Social) statistical yearbooks. Incidences were calculated per cause, economic activity, and severity of the accident/ill-health. Data from before and after the introduction of the Accident Prevention Factor were compared using the Mann-Whitney test per cause and per economic activity. Statistical analyses were made using the SPSS software, with significance set at 5%.Results: A reduction in the incidence of work-related accidents/ill-health was found across all the groups of causes analyzed, except for the groups "external causes of morbidity and mortality" and "factors influencing health status and contact with health services." Greater reductions were found for diseases of the musculoskeletal system and connective tissue and diseases of the nervous system. Reductions in work-related accidents/ill-health were found in the different economic activities and in the different severity groups. The highest reduction after the introduction of the Accident Prevention Factor was in manufacturing and production (p < 0.05).Conclusions: Overall, the incidence of accidents/ill-health was found to be on decline, except those with external causes of morbidity and mortality and those involving factors influencing health status and contact with health services. The biggest reduction was found in manufacturing and production. However, generally speaking progress still needs to be made in accident prevention and occupational health across a whole range of work environments. [ABSTRACT FROM AUTHOR]

This paper provides a methodology to decompose the redistributive effect of fiscal policy for individual income units that belong to groups. This methodology is useful to identify how much of redistributive effect and also progressive/regressive effects apply within groups, between groups and among overlapping units, and whether there are tensions between different effects. A case study with an application of fiscal policy in Argentina for year 2010 is provided. [ABSTRACT FROM AUTHOR]

The article is devoted to the empirical study of the indicators of value added and logistics costs in the chain of grain and bread products of Ukraine. The interlink ratios of the main efficiency indicators and reproduction disproportions in the development of the market chain have been determined. It has been established that as the degree of processing of products in the chain «wheat – flour – bread» increases, its level of profitability decreases with a simultaneous increase in the tax burden and changes in the structure of value added in the direction of increasing the share of wages and reducing specific gravity of profits. It has been proved that the link of bakery products production, playing an important social and tax role in the market system, lacks added value, which inhibits its reproduction development on an innovative basis. It has been emphasized that the unresolved problem of structural disparities in the chain of grain and bread products is gradually transforming this chain in the direction of reducing the completed processing cycle and migration of value added in the «shadow» spheres of processing units. The diagnostics of logistics costs in the unit dimension has been carried out, the logistics component of value added has been calculated for the first time, its greatest value and the growing trend in the raw material link have been established. Based on the inter- link balance of market chain efficiency indicators, their comparative analysis has been carried out and a number of inter-link inequalities have been identified as a basis for the introduction of adaptive mechanisms and measures to overcome reproduction imbalances in the value chain. Directions and measures of continuation of the market value chain in the context of achieving the goals of the National Economic Strategy until 2030 have been defined, namely: approval of effective technical regulation and market surveillance, gradual «de-shadowing» of the market chain links, stimulating flour exports, supporting domestic exporters in foreign markets. [ABSTRACT FROM AUTHOR]

The article describes and considers the features of tax management at the micro level, the subject and functions of tax management, discloses the concept of tax planning, describes its main stages, the need and efficiency of tax planning. A list of measures and instruments for tax planning has been provided. The purpose of any economic activity, as you know, is to make a profit. Therefore, it is important, to create an enterprise even at the stage of planning, to weigh all possible vectors of its development, to provide for the amount of income and expenses. Tax planning allows, by reducing the cost of paying taxes and mandatory fees to the state and local budgets, to significantly improve the profitability of the business. Such planning must be carried out exclusively with the participation of a specialist (tax consultant, lawyer, financial director, chief accountant, accounting and audit manager) with special knowledge and experience. After all, the main cornerstone here is legality and compliance with current legislation. Tax planning is a system of actions, measures and plans aimed at finding legal ways to reduce the tax burden in today's conditions and in the future. In fact, this is a tool that can significantly reduce the share of the shadow economy in the state. However, unfortunately, in Ukraine, tax planning is used quite rarely and, as a rule, is limited to the calculation of taxes that must be paid after the end of the tax reporting period. But with a correct understanding of the essence of tax planning and the involvement of progressive and experienced specialists, tax amounts can be optimized, freeing up significant amounts for investments in new business areas and new projects. [ABSTRACT FROM AUTHOR]

Presently there is no definite agreement of taxes definition. Most of the statistics include to tax incomes all obligatory fee of the public sector, which is not based on principles of equivalency. In this case, taxes can be defined as obligatory fees of the public sector, to which governments do not provide direct equal consideration. Modern tax systems are based on the taxation of incomes, consumption, and property. The trend in the area of EU countries taxation is a transition of the tax burden from incomes and capital to consumption. Mainly conditions of mining organisations are presented in the contribution when tax rates and trends in the area of income tax of mining organisations are described. The goal of the contribution is to describe the tax burden of business subjects (mining and extraction organisations) in Hungary, Slovakia, Poland, and the Czech Republic. In the contribution, we orientate the research to a detailed analysis of tax rates in chosen countries. The contribution consists of results conclusions, found by analysis, as well as by comparison of the tax burden of V4 business subjects. The result of the problem analysis presents suggestions of the tax mix change and transition to the relatively high tax burden of a job, mainly for low-income employees, to the lower tax burden of high taxes, as for example, environmental taxes. The results are useful for the management of mining organisations, which provide a possibility of financial savings. On the international level, the results serve for the comparing of the financial situation of mining organisations in V4 countries, which is suitable for a determination of raw material states policies. [ABSTRACT FROM AUTHOR]

To mix gustatory metaphors, those following the attempted passage of President Biden's Build Back Better agenda got a front row seat to DC sausage-making and yet left hungry, at the end of the day, with a big nothing-burger. Other incentives are also available for developers and tax equity investors. Rather, it appears that developers and tax equity investors can layer these credits on top of one another. [Extracted from the article]

Purpose - This research was aimed at verifying the influence of the tax burden on the value added produced by publicly traded companies listed in Brazil Bolsa Balcão (B3). Design/methodology/approach - The study had a quantitative approach and the sample period was from 2010 to 2016. Given the complexity of the Brazilian tax burden - characterized by high tax rates and confusing legislation - and the importance of value added as an accounting metric with economic impact, this research relied on the public choice theory and the elasticity of taxable income to analyze the relationship between the level of tax burden and the process of wealth generation in Brazilian companies. Findings - The empirical evidence found in this study corroborates the theoretical understanding that the tax burden in Brazil exerts a negative influence on the value added produced by companies. Practical and Social implications - This conclusion is a relevant assessment for society as a whole, as it is necessary to protect and maximize companies' wealth-adding process, since it is the resources produced by companies that will be shared in the economy with society, whose development depends on the wealth creation process. Originality - The use of the added value produced as a metric of efficiency or saturation of the tax burden borne by companies in the Brazilian market. [ABSTRACT FROM AUTHOR]