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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 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]

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]

The article evaluates the relationship between the tax burden on labor and magic quadrangle indicators in the Czech Republic in the years 1993 through 2020. The article examines whether indicators such as the effective rate or tax rate on labor affect the macro-economic indicators of the magic quadrangle. The originality of this study lies in the fact that it deals with the influence of political factors. The analysis shows the strongest correlation between the growth of gross domestic product and the implicit tax rate on labor. Moreover, the study finds that the factor with the most significant – and surprising – bearing on the findings is that fact that right-wing Parliament behaved like left-wing parties. The conclusions reached by this study further underline the significance of the tax burden on labor on the selected magic quadrangle indicators. [ABSTRACT FROM AUTHOR]

The informal economy has started to become the center of attention of the whole world since the 1960s. Therefore, the informal economy emerges differently in each country and is called with different terms. Defining and measuring the informal economy is difficult and it is an undesirable situation due to the negative effects it creates. For this reason, determining the causes of the informal economy is of great importance in the fight against informality. There are many reasons for the informal economy. Although these reasons differ between countries, the most widely accepted reason is that the tax burden is heavy. So, taxes become an issue that needs to be emphasized in the fight against the informal economy. Although there are studies in the literature that deal with the relationship between informality and tax, most of the studies are on the effect of the informal economy on tax revenues. In this study, the practices that are within the scope of income tax and that can negatively affect informality are discussed. In this direction, the study aims to explain how practices in the Income Tax Law negatively affect informality. [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]

Inflation, which has many costs to the economy, also has extremely important costs on the tax system and financial system. Inflation is known to have an impact on real income levels and tax burden, as well as influencing economic decisions. On the other hand, the tax practices of the government also play a role in the formation of cost inflation. In this framework, the multifaceted nature of the relationship between inflation and taxes is important for all components of the economy. In our study, in order to empirically examine the direction and nature of the relationship between indirect tax revenues and inflation, the relationship between indirect tax revenues and consumer price index (CPI) in Turkey is investigated within the framework of cointegration and causality analysis. According to the findings obtained from the study, although CPI is the cause of tax revenues for Turkey, the existence of a causality from tax revenues to CPI could not be determined. [ABSTRACT FROM AUTHOR]

Investments, primarily in manufacturing, are a guarantee that enterprises will be able to update their production assets in a timely manner and maintain or even strengthen their position in markets of goods and services. However, the issue of defining factors that affect the volume and dynamics of investments is quite problematic, which makes it difficult to create appropriate economic and mathematical models. Foreign and Ukrainian scientists have long been engaged in determining such factors. Usually, they include: GDP per capita of the country; the rate of economic growth; national savings; currency exchange rate; inflation; discount rate; the level of tax burden (primarily -- corporate income tax); the price index for industrial products; the level of income on invested capital (return on investment coefficient); wages; labor productivity, etc. But in each country, the strength of influence of different factors may vary. The process of modeling investments is also complicated by the fact that some factors (for example, GDP per capita) are complex in themselves and depend on other factors. Therefore, the objective of this paper is to define the factors influencing investment in Ukraine and to develop appropriate economic and mathematical models, which are supposed to be used in the future to build a comprehensive system-dynamic model of the impact of digitalization on ensuring sustainable development of Ukraine. Such a comprehensive model can become not only a convenient tool for determining the consequences for industry of changes in investment volumes under the influence of various factors, but also the level of Labor morbidity and environmental pollution. According to results of the study, it was found that the volume of investment in the Ukrainian industry is most affected by the NBU discount rate. The paper suggests an appropriate investment model and justifies its adequacy. Investments in industrial digital capital are influenced by the factors of the US dollar index and tax burden, and investments in environmental digital capital are affected by factor of tax burden. However, due to the very approximate statistics on which the calculations were performed, the corresponding models are not reliable. Taking into account the results of the study, recommendations for the development of a methodology for collecting and presenting statistical information related to investments in digital equipment and technologies by enterprises of the country and digital capital for environmental and industrial purposes (by structure) are made. Their implementation will make it possible to make more accurate calculations in the future and create more reliable economic and mathematical models that can become a convenient tool for defining the directions of development of the country's economy. [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]

This article addresses the burden of tax revenue in Canada with particular attention to income taxes at the top of the income distribution. Theory, methodology, and measurement are central to the discussion. I find that the Canadian personal income tax is progressive and satisfies the Buffett rule comparing the top of the income distribution with the middle. In the bottom half of the distribution, issues of measurement are pivotal to characterizing the tax burden. At the top of the distribution, incidence assumptions based on different theories of capital mobility are paramount and have a large impact on measured progressivity. [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 purpose of this article is to better understand the architecture of social protection as a complex and evolving system in contemporary societies. To achieve that goal, we establish an inventory of 65 socio‐fiscal expenditures or social tax expenditures (STEs) of Quebec's (Canada) personal income tax system. These include tax expenditures related to social protection insofar as they contribute in one way or another to the protection against major social risks, the improvement of living conditions and to the fight against exclusion and social inequalities. STEs were selected taking into account the objective pursued (supporting income, promoting pensions, helping employment, recognising family responsibilities, encouraging education, pursuing a specific social objective, and promoting tax equity) and the type of tax break (tax credits, exemptions, etc.). The classification reveals the extent of recourse to taxation as a complementary tool for public intervention in the field of social protection. [ABSTRACT FROM AUTHOR]

The relationship between environmental taxes and income distribution has become an important topic of discussion in recent years. These discussions began in the 1990s, with a series of tax reforms in many countries both to reduce environmental pollution and to increase employment. With these tax reforms, the tax burden on labor and capital has been shifted onto products that cause environmental pollution. This radical changes in the tax system of countries has led to an increase in the price of many products. It is fairly hard to say that all segments of society are equally affected by the increase in prices. In this context, the aim of the article is to empirically determine effects on the income distribution of energy, transportation and other environmental taxes applied in 25 OECD member countries and give suggestions for reducing the negative effects of these taxes. In this study, the long-term effects of energy, transportation and other environmental taxes on income distribution were examined by panel data method between 2000 and 2015. As a result of the analysis, it was determined that while energy and other environmental taxes distort income distribution, transportation taxes improved the distribution of income. [ABSTRACT FROM AUTHOR]

This study aims to measure the optimal tax burden of the Jordanian economy using time series data from 1980 to 2020. Laffer curve was utilized to measure the optimal size of tax revenues in Jordan, the optimal size of income tax and the current tax burden compared to the optimal size of tax. To this end, a standard model was used to estimate Laffer curve and a fully modified ordinary least squared model (FMOLS) was used to estimate the parameters. The results indicated that the current tax rates are lower than their optimal size. Income tax levels in Jordan are also lower than international levels, whereas the tax burden is relatively higher. The study recommended that the government can increase its income from income tax and profits by increasing the actual rates to be closer to the optimal rates. The study also recommended that the actual rates have to be increased differently across sectors, since decision-makers in Jordan are increasingly paying more attention to industrial sectors. [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]

Gambling markets have grown rapidly for the last few decades. As a result, gambling is also a very important and common source of tax income for many governments these days. This raises a question about the overall fairness of the gambling taxation systems. In this paper, we aim to study the tax incidence of gambling in Finland. First, we analyse who are the expected payers of the gambling taxes and second, who are expected to be the receivers of the gambling-tax based contributions. In the first part of the study, we analyse the demographic incidence of gambling taxation by using the Finnish gambling 2015 population survey combined with registry based variables. Our data contains 3776 individuals. In the second part of the study, we use data of county level gambling-taxation based contributions to different organisations to analyse how the gambling expenditures are distributed back to citizens in a form of public spending. This study shows that different socio-demographic factors have diverse association with the decisions whether or how much to gamble. The results also suggest that more disadvantaged, i.e. lower income, less educated and rural area living, individuals are expected to be the "losers" of the Finnish gambling taxation system. In other words, the Finnish gambling system is found to be regressive by nature. [ABSTRACT FROM AUTHOR]

Our research aims to analyze the evolution in time and space of taxation rates and the impact of legislative changes on the microeconomic and macroeconomic environments, as well as the impact of legislative changes, the analysis of different models of tax systems based on the flat tax rate, used in Romania, or progressive tax rates, preferred in countries like France, Belgium and Luxembourg. Attempts at comparing personal income taxes are relatively rare and difficult to achieve precisely because of the tax legislation that is significantly different from one country to another in terms of tax base, tax rates or method of calculation of the various taxes and fees. Identifying the best taxation approach is the main goal of our paper. Our research is aimed at identifying the best taxation system, at determining the correlation between tax burden and tax income, thus analyzing the distributive effects of flat rates or progressive rates, and the effects of preferring one to the other, in other words determining whether they encouraged the formation of a middle class or on the contrary, they have deepened the inequity among the population, the effects that these systems have had on the social, economic and political environments in Romania and in the French-speaking countries included in our research: France, Belgium and Luxembourg. [ABSTRACT FROM AUTHOR]

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

The present contribution deals with the digital tax, which was proposed in 2018 by the European Commission as EU-wide solution for the digital economy. This levy would target tech giants' profits from their EU activities by increasing the effective income tax burden placed on the digital economy. Unfortunately, the digital tax proposal of the European Commission failed due to the lack of consensus within the Member States. This paper tries to explore whether and to what extent the digital tax impasse in the EU would push more countries to apply the levy in their national tax systems, whilst the outline of the international income taxation is on its way within the OECD multilateral setting. [ABSTRACT FROM AUTHOR]

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

Income tax tarif provides some advantages in terms of tax policies due to progressive structure. In addition, accepted the quite a significant disadvantage of this progressive structure, distort the tax burden distribution by created the fiscal drag effect in economy that growing with an inflation. Fiscal policy authorities take political measures to eliminate this impact so that it does not adversely affect growth in the long run. One of these measures is to increase the tariff levels to a certain extent for each new taxation period. However, there is no clear opinion on the amount of this increase. In this study, in order to prevent the effect of fiscal drag by using two different indexes have been calculated to determine the rate of income tax tariff steps. In this direction; Turkey's economy has grown with inflation in recent years, the fiscal drag effect to prevent the occurrence of income tax tariff's bracket is concluded that every year a certain amount of readjustment. [ABSTRACT FROM AUTHOR]

Enactment of the TCJA was followed by a mad dash to understand its effects. The speed and process of enactment left no time for serious attempts to analyze whether the TCJA transforms the income tax system in any fundamental way. This Essay is a first step in that analysis. Although some of the most important changes I discuss are set to expire or phase out after 2025, understanding their policy implications is important, not only because they are the law now but also because Congress may extend them, perhaps indefinitely. The TCJA has changed the way the tax system operationalizes the principles of horizontal equity and ability to pay, has brought the base of the regular tax closer to the base of the AMT, and has increased the number of tax provisions that have been promulgated in the form of standards, which will require the deployment of significant administrative and judicial resources before they can be implemented effectively. By removing consideration of taxpayers' support obligations from the tax base (except as relevant to the determination of filing status in the case of taxpayers who might qualify for the statuses of head of household or surviving spouse), the TCJA has jettisoned the value of ability to pay. It has unmoored the tax base zero bracket from the poverty level and created a system in which two taxpayers with very different ability to pay as a result of support obligations will be taxed the same, and in which two taxpayers with the same ability to pay will be taxed differently. The TCJA has turned the concept of horizontal equity on its head. In some cases the tax base will even be the taxpayer's gross income in its entirety, subjecting to taxation even the amount needed for minimal subsistence. Under the TCJA the income tax will tax income from labor differently depending on the form in which the labor is performed. Labor income earned in the form of wages--by the performance of services as an employee--will be fully taxed at ordinary income rates. But some income earned by the performance of labor in any other way--as an independent contractor, for example--will be taxed at only 80 percent of the rate that would otherwise apply. Ability to pay is irrelevant. Although the foregoing fundamental changes to the tax system were not clearly identified and debated by scholars and tax professionals prior to enactment, the idea of shifting to a territorial system was. The TCJA rejects the principle of capital export neutrality, thereby creating a dramatic difference in the tax burden placed on income as a result of its source: henceforth, much foreign source income received by some U.S. persons, in the U.S., will not be subject to U.S. income tax, ever. But the shift to territorial is incomplete. The TCJA distinguishes between the taxation of foreign and domestic source income only for some taxpayers. It lacks a comprehensive policy foundation either domestically, or internationally. [ABSTRACT FROM AUTHOR]

Author's Synopsis: In 2017 Congress repealed the provisions that allowed divorced or legally separated couples to shift the income tax burden of alimony payments from the payor spouse to the payee spouse. The stated purposes for the change were to simplify the tax code and to eliminate an unwarranted tax preference favoring divorced couples over married couples. On closer scrutiny, it appears that Congress may have been less interested in simplification or equity than in scoring revenue gains to offset the cost of unrelated tax cuts for high-income individuals, business owners, and corporations. In addition to reallocating the tax burden of direct alimony payments, the 2017 changes increase the likelihood that the grantor of a trust will remain taxable after divorce or legal separation on trust income distributed to a former spouse. In the absence of a statutory exception, the grantor trust rules will apply to the extent that trust income might be used to satisfy the grantor's continuing alimony obligation, no matter how contingent. Furthermore, even if the grantor has no continuing alimony obligation, any trust income distributable to the former spouse will be attributed to the grantor if the trust was created during marriage. Unfortunately, given the budget considerations that facilitated the 2017 changes, it will be politically difficult to alleviate their undesirable consequences. [ABSTRACT FROM AUTHOR]

This paper deals with the comparison of the tax burden of selected US States within the framework of two taxes - income tax and sales tax. When drawing up this issue, the authors were led by the idea that there may be significant differences among particular states, so they chose as the objective to identify fiscally attractive areas. The quantification research of tax burden on model farms in 12 US states -- Corn Belt was carried out in order to meet the objective. To the three groups of taxpayers (single, married and head of household) were applied federal and state taxation on natural persons income, social security and health insurance contributions, and sales tax. The cross-sectional analysis is focused on 2012. The results of the comparative analysis led to the identification of fiscally attractive areas of agribusiness (South and North Dakota - regardless of the taxpayer status, Ohio) and to the confirmation of the assumption that there are significant differences between the states surveyed -- particularly as regards the sales tax where a deviation of tax liability from the lowest tax burden of 74.99% was identified. [ABSTRACT FROM AUTHOR]

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

Agricultural sector has its own specificities that are a prerequisite for lower and unstable incomes compared to other sectors of the economy The taxation of the agricultural incomes has a specificity for Bulgaria as well as for other European countries. This article analyzes the two different approaches in the tax policies of selected European countries and Bulgaria for reducing tax burden of the farmers. The aim of the current investigation is to compare taxation and to outline the common features and differences in the taxation of the farmer natural person in the different countries. The tax legislation in most European countries including Bulgaria provides specific regulation of agriculture income in order to relieve the tax burden or bookkeeping. We conclude that the tax instruments and reliefs are an effective prerequisite for reducing the huge gap in income levels from agriculture compared to those of other sectors of the economy. [ABSTRACT FROM AUTHOR]

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

The article focuses on principal focuses of U.S. international tax planning generally are minimizing or eliminating current U.S. federal income tax on income earned offshore. It mentions the U.S. Internal Revenue Code in the cross-border setting that permit what would otherwise be taxable income to be exempted from U.S. federal income tax. It also mentions federal income tax burdens imposed on U.S. persons who participate in foreign pensions can be severe.

We explore the implications of four natural axioms in taxation: continuity (small changes in the data of a taxation problem should not lead to large changes in the tax allocation), equal treatment of equals (agents with the same pre-tax incomes pay equal taxes), consistency (the way in which a group allocates a tax burden is immune to secessions of taxpayers) and composition down (an increase in the tax burden is handled according to agents' current post-tax incomes). The combination of the four axioms characterizes a large family of rules, which we call generalized equal-sacrifice rules, encompassing the so-called equal-sacrifice rules (such as the flat tax), as well as constrained equal-sacrifice rules (such as the head tax), and exogenous poverty-line rules (such as the leveling tax, and some of its possible compromises with the previous ones). [ABSTRACT FROM AUTHOR]

Taxes are an integral part of human society, regardless of the economic, cultural and political disparities between the countries. Income taxes of legal entities represent significant part of the budget, what is the reason for their timeliness and public discussion. The aim of the paper is a classification of the EU countries into economic groups and an assessment of the grouping these EU member states based on common characteristics in the area of corporate income taxes. Common features are determined by the structure of selected macroeconomic indicators: public debt, government budget balance, the overall tax burden, economic performance, nominal and effective tax rate. The analysis compares a range of methodological approaches of hierarchical (Ward linkage and median linkage), and non-hierarchical clustering (k-means clustering and fuzzy cluster analysis). The results of cluster analysis grouped the monitored countries into five clusters based on common characteristics as the corporate income tax rate, economics performance and the level of public debt. The result of the analysis shows that despite of ongoing there are still differences present, which are present in the ratios of countries' development as well as in the economic policies of the particular countries. [ABSTRACT FROM AUTHOR]

This paper considers tax evasion with morality and its implication for equity of the tax system. In the standard model of tax evasion without moral costs, higher-income taxpayers evade more, relative to their incomes, than lower-income taxpayers, and evasion makes the tax system regressive. With moral costs, equity of the tax system depends on the degree of morality. As the level of morality in society increases, it increases moral costs of evasion and evasion become inferior. Higher-income taxpayers evade less and pay more taxes, and evasion makes the tax system progressive for a high level of morality. The opposite holds true and evasion makes the tax system regressive for a low level of morality. [ABSTRACT FROM AUTHOR]

Raising taxes can come at a serious cost. Not just to the taxpayer, of course, but to the economy. Every tax hike naturally leads people or companies to reallocate resources in ways that are less productive, resulting in a loss of income-generating opportunities. At a certain point, raising taxes becomes manifestly counterproductive, with the revenue lost due to the negative economic effects outweighing any tax gains. In cases like that, a government would actually raise more money by lowering taxes, broadening the tax base, than it does by increasing taxes. In fact, an analysis of the tax-base elasticities of the provinces, using data from 1972 to 2010, reveals that this very phenomenon is what occurred in Saskatchewan, which raised corporate taxes to a point where it began to backfire, sabotaging the government's goal of raising more revenue. It also occurred in New Brunswick, Newfoundland and Labrador, P.E.I., and Nova Scotia. In all these provinces, tax increases on corporate earnings actually ended up yielding less for the provinces than the provincial governments would have collected had they instead lowered corporate income taxes. In five other provinces, governments undermined their own provincial economies over the same period, raising corporate taxes when they would have been better off actually cutting the corporate income tax, and making up the difference with a revenue-neutral sales tax. Alberta, Ontario, British Columbia, Manitoba and Quebec all paid dearly for the decision to hit corporations with higher taxes, by sacrificing what could have been significant welfare gains had they sought to raise the same amount of revenue through higher sales taxes (or in the case of Alberta, a new sales tax). Quebec, at least, has lower tax-base elasticity than the others, however, possibly due to its unique cultural and linguistic characteristics, which may make it somewhat less likely for people and investors to leave the province. The evidence clearly demonstrates that corporate income taxes are far more sensitive to changes in the provincial tax rate than are personal income taxes or general sales taxes. Of course, it is not hard to see why politicians may feel political pressure to raise taxes on corporations, who do not vote, rather than passing tax increases onto residents, who do. But, while taxing corporations may be popular, preferred both by the voters and the politicians, when creating greater economic opportunities for their residents, provinces would have been far better off, over the measured 38-year period, looking elsewhere for additional revenue. As politically contentious as it may be, that means going easier on corporations and instead raising personal income and sales taxes. [ABSTRACT FROM AUTHOR]

In 2007, the Uruguayan government implemented a tax reform which introduced a new progressive labour income tax and a flat capital income tax, and reduced some indirect taxes, with the objective of improving fiscal balance, income distribution and economic growth. This article evaluates the impact of such tax reform on equity and efficiency on the basis of data derived from the Encuesta Continua de Hogares (ECH) for 2006 and 2009. Using a Difference-in-Differences technique, it shows that the new system reduced inequality by 2 Gini points without producing any discernible disincentive effect, suggesting that suitably designed reforms of direct taxation can simultaneously promote equity and efficiency. [ABSTRACT FROM AUTHOR]

Abstract: Pollution taxes are believed to burden low-income households that spend a greater than average share of income on pollution-intensive goods. Some proposals offset that effect by returning revenue to low-income workers via reduced labor tax. We build analytical general equilibrium models with both high-skilled and low-skilled labor, and we solve for the change in real net wage of each group. Decomposition shows the separate effects of the tax rebate, higher product prices, and the changes in relative wage rates. We also include numerical examples. Even though the pollution tax injures both types of labor, in most cases we find that returning all of the revenue to low-skilled workers is still not enough to offset higher product prices. Changes in relative wage rates may further hurt low-skilled labor. Protecting low-income workers is possible in this model only if they are defined as those below a relatively low wage threshold, but we discuss many possible elaborations of this model that could affect those results. [Copyright &y& Elsevier]

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

This paper analyses the medium-term effects of a carbon tax on growth and CO2emissions in Ireland, a small open economy. We find that a double dividend exists if the carbon tax revenue is recycled through reduced income taxes. If the revenue is recycled by giving a lump-sum transfer to households, a double dividend is unlikely. We also determine that a greater incidence of the carbon tax falls on capital than on labour. When combined with a decrease in income tax, there is a clear shift of the tax burden from labour to capital. Finally, most of the effect on the economy is due to changes in the competitiveness of the manufacturing and market services sectors. [ABSTRACT FROM AUTHOR]

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

En este trabajo se estiman los efectos distributivos de la eliminación del tratamiento diferencial de ingresos empresariales respecto de los ingresos individuales en el sistema tributario chileno, así como de eliminar la principal exención vigente en el impuesto al ingreso de las personas: la del ahorro previsional voluntario. En cuanto a esta exención, los resultados muestran que si bien a quienes favorece son mayoritariamente personas de más altos ingresos, su eliminación no aumenta la progresividad del impuesto al ingreso. En el caso de la eliminación del tratamiento tributario favorable a los ingresos corporativos, los efectos distributivos son importantes en magnitud y el impuesto al ingreso se hace significativamente más progresivo. En general, los resultados evidencian que el impuesto al ingreso en Chile es menos progresivo que lo que parece y que hay espacio para que tenga un papel redistributivo relevante en la disminución de la desigualdad en el ingreso. [ABSTRACT FROM AUTHOR]

The article discusses the legislative amendments made to the tax law of Kansas. It describes the revisions that affect the Kansas individual income tax as well as other tax provisions impacted by the new legislation. It highlights several unresolved questions related to taxation provisions and reflects on the fiscal impact of the new legislation on distribution of the Kansas tax burden and related policy issues.

The article analyzes the relationship between economic growth and personal income tax in the 100 largest metropolitan areas in the U.S. since 1980. The author argues that high spending and tax rates in cities such as Detroit, Michigan, Milwaukee, Wisconsin, and Syracuse, New York, impede economic development. He asserts that high-growth areas such as Dallas, Texas, Tampa, Florida, and Austin, Texas, are models that should be emulated. According to the author, the data reveal that economic prosperity and the growth of urban areas will escalate as tax burdens are low as compared to nearby metropolitan areas. The author emphasizes the importance of low tax rates and effective spending by local governments during times of economic difficulty.

OBJECTIVES: To investigate the appropriateness of tax incidence (the percentage of the retail price occupied by taxes) benchmarking in low-income and-middle-income countries (LMICs) with rapidly growing economies and to explore the viability of an alternative tax policy rule based on the affordability of cigarettes. DESIGN: The paper outlines criticisms of tax incidence benchmarking, particularly in the context of LMICs. It then considers an affordability-based benchmark using relative income price (RIP) as a measure of affordability. The RIP measures the percentage of annual per capita GDP required to purchase 100 packs of cigarettes. Using South Africa as a case study of an LMIC, future consumption is simulated using both tax incidence benchmarks and affordability benchmarks. RESULTS: I show that a tax incidence benchmark is not an optimal policy tool in South Africa and that an affordability benchmark could be a more effective means of reducing tobacco consumption in the future. CONCLUSIONS: Although a tax incidence benchmark was successful in increasing prices and reducing tobacco consumption in South Africa in the past, this approach has drawbacks, particularly in the context of a rapidly growing LMIC economy. An affordability benchmark represents an appropriate alternative that would be more effective in reducing future cigarette consumption. [ABSTRACT FROM AUTHOR]

Abstract: Green taxes can internalize environmental externalities and raise revenues. We develop a positive theory that treats both of these aspects as endogenous outcomes of special-interest and electoral politics. We consider the choice among three (endogenous) refunding rules: income tax cuts, extra public spending and tax burden compensation to polluters. We show that a polluter lobby group may lobby for the ecotax revenue to be refunded to voters rather than to its members. The reason is that the “price” that the lobby group must pay for a reduction in the green tax can be reduced by supporting a refunding rule that pleases voters. Our analysis provides insights into recent green tax reforms in Europe. [Copyright &y& Elsevier]

Denmark's income tax burden as the percentage of GDP is larger than the total tax burden of the United States, and it has increased further after 1980. How can this be explained, given increasing tax competition and widespread views that strong reliance on regressive taxes was conducive to building and maintaining large tax and welfare states? The article highlights three factors: First, large income taxes are feasible if the capital tax burden is moderated within the income tax. Second, the effective capital income tax burden that had developed up to the early 1980s was extremely low so that subsequent tax reforms could cut marginal tax rates on mobile types of capital income while increasing tax revenue. Third, drastic changes in the legal structure of the income tax and stability in aggregate tax policy outcomes were facilitated by proportional representation and legislative majority rule. [ABSTRACT FROM AUTHOR]