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This paper examines the short- and medium-run effects of U.S. federal personal income and corporate income tax cuts on a wide array of economic policy variables in a data-rich environment. Using a panel of U.S. macroeconomic data set, made up of 132 quarterly macroeconomic series for 1959–2018, we estimate factor-augmented vector autoregression (FAVARs) models where an extended narrative tax changes dataset combined with unobserved factors. The narrative approach classifies if tax changes are exogenous or endogenous. This paper identifies narrative tax shocks in the vector autoregression model using the sign restrictions with the Uhlig's (J Monet Econ 52(2):381–419, 2005. https://doi.org/10.1016/j.jmoneco.2004.05.007) penalty function. Empirical findings show a significant expansionary effect of tax cuts on the macroeconomic variables. Cuts in personal and corporate income taxes cause a rise in output, investment, employment, and consumption; however, the effects of corporate tax cuts have relatively smaller effects on output and consumption but show immediate and higher effects on fixed investment and price levels. We validate the model's specification and the identification of tax shocks through a reliability test based on the Median-Target method. Additionally, sensitivity analysis employing the local projection vector autoregression model, number of iterations of the algorithm, and incorporating diverse factor specifications reaffirms tax cuts' persistent and expansionary effects. Our contribution to the narrative tax literature lies in providing empirical evidence that aligns with the notion that reductions in personal taxes demonstrate a higher efficacy as a fiscal policy tool when compared to reductions in corporate income taxes. [ABSTRACT FROM AUTHOR]

Low-income individuals who do not file Canadian personal income tax returns miss out on several important benefits delivered through the tax system and may have challenges in verifying eligibility for other income-tested public goods and services. The Canada Revenue Agency (CRA) could complete simple returns for many low-income families, subject to filer correction. Using the Longitudinal Administrative Databank, we estimate that this approach could be successful for more than half of families in the lowest four ventiles of the population and between 60 and 88 percent of families who rely on provincial income assistance programs. We also estimate that as many as 4.6 million returns for those with income less than $25,000 and that are classified by the CRA as simple have likely involved a commercial tax preparer or software, emphasizing the potential advantage of the CRA providing completed returns in such cases. [ABSTRACT FROM AUTHOR]

The article discusses the additional adjustment of the tax system carried out in the Russian Federation in 2024, primarily in terms of changes in the rates of corporate income tax and personal income tax. Based on the analysis, a conclusion is made about the comparability of the levels of these taxes in Russia and in some countries of the Organization for Economic Cooperation and Development. It is shown that the centralization of additional revenues arising from the ongoing improvement of the tax system is more effective than the potential redistribution of these revenues to regional budgets due to the high concentration of corporate income tax and personal income tax in the wealthiest regions of Russia.

Wide definition of “employment income” set out in Polish Personal Income Act of 26 July 1991 makes it challenging for the tax authorities and administrative courts to qualify remuneration items as taxable income. A special attention is focused on benefits in-kind which can include expenditure on travel, board and lodging for posted workers. So far the well-rooted line of case law, based on domestic tax and labor law regulations in Poland, inclined treatment of such benefits in-kind as employment income of posted workers. The analyzed judgment by the Supreme Administrative Court is of ground- breaking nature, considering the obligations of posting employer lined in the Directive 96/71/EC and Directive (EU) 2018/957 amending Directive 96/71/EC – both concerning the posting of workers in the framework of the provision of services

This paper characterises the Laffer curve of each individual taxpayer in a schedular multi-rate income tax with income shifting. Analytical expressions for the revenue-maximising tax rate and the revenue-maximising elasticity are provided for the individual taxpayer and the aggregate population, as well as new estimates of the Elasticity of Taxable Income. Applying these to the Spanish income tax demonstrates that 44.72% (58.49%) of the taxpaying population in the non-savings tax base (savings tax base) is on the "normal" side of the Laffer curve. On average, these taxpayers are 6.59 points (24.73 points) above (below) the maximum of the Laffer curve. The fraction of total tax revenue lost through behavioural responses amounts to 53.77%. However, this fraction varies by population subgroup and decreases when we account for income-shifting responses, suggesting the presence of fiscal externalities in the Spanish PIT. [ABSTRACT FROM AUTHOR]

The regional geopolitical tensions, the changes in the regional markets of energy products and food that led to the increase of prices and the stagnation of economic growth at the level of the European Union highlighting the need to review the management of public policies. Thus, under the pressure of growing public and private debts, under the pressure of budget deficits, the fiscal policies of the EU27 states often have the unpleasant task of making substantial reforms of the taxation systems. Therefore, the article proposes the construction of a series of scenarios regarding the possibility of returning to the progressive taxation of the payroll tax in Romania. The article tries to highlight the advantages and where benefits can intervene for the structure of the national budget starting from the analysis of a series of scenarios regarding the progressive taxation of salaries and proposals are outlined in this regard.

The priority direction of tax policy of the Russian Federation (hereinafter referred to as RF, Russia) is its focus on building a social state in the country and developing mechanisms for implementation of effective social policy. This article explores possibilities of considering а taxpayer’s family status in determination of tax burden on personal income tax. The purpose of the article is to conduct the author’s research of the results of applying existing approaches and the potential and expe diency of introducing family taxation in Russia with consideration to foreign experience and its adaptation to modern Russian realities. With the help of the method of system analysis, the author uses sociological and economic approaches to study the family as a social institution and economic association of close relatives, and regards implementation of the principle of fairness of taxation from the point of view of a socially-oriented approach. Based on the research of the foreign experience and provisions of the Russian tax legislation, the expediency of applying in Russia income taxation of family as a consolidated group of taxpayers with joint liability for the fulfilment of tax obligations is substantiated. The author’s definition of the family as an object of tax relations is given. The order of taxation of the aggregate family income in the calculation of personal income tax is proposed. The mechanism of using family taxation is described, the introduction of which meets the realisation of priority goals of the tax policy of Russia, development of the social state. The conducted analysis has shown that in the tax legislation, when providing privileges, the family status of the payer is considered. The development of this approach will further create conditions for strengthening the family as a source of morality, patriotism, culture of the younger generation.

This study seeks to undertake a comprehensive analysis and comparison of the corporate income tax systems across select European Union nations, with a specific focus on discerning disparities between the individual income tax (IIT) and corporate income tax (CIT) frameworks prevalent in Portugal, Holland, Belgium, Luxembourg, and Germany. With an institutional theory lens, we applied document analysis to describe the distinctive attributes characterizing each tax regime within the purview of competitive dynamics and fiscal competitiveness. Despite inherent limitations stemming from challenges in accessing tax-related information and potential oversights regarding socio-political determinants, this study underscores the imperative of grasping the intricate interplay between tax imposition levels and broader economic development trajectories. By furnishing valuable insights into prospective reforms pertaining to Portugal's corporate income tax architecture, this scholarly inquiry significantly enriches our comprehension of tax competitiveness within the overarching framework of the global economic environment. [ABSTRACT FROM AUTHOR]

Copyright of Crónica Tributaria is the property of Instituto de Estudios Fiscales, Ministerio de Hacienda y Funcion Publica and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper studies discussion issues of the simplified procedure for obtaining tax deductions for personal income tax (hereinafter referred to as PIT). The objectives of the study are the following: to review the changes in tax legislation from January 1, 2024 in the field of proactive mode of granting tax deductions for PIT, to justify the increasing role of this interaction between individuals and tax authorities, to identify current problems and to search for ways of solving them. The authors analysed the practice of application of the simplified procedure for obtaining property and investment tax deductions; statistical data of the Federal Tax Service of Russia on the provision of tax deductions in a simplified manner (1-DDK statistical form “On the declaration of personal income”). The analysis of key changes in the provision of deductions entering into force on January 1, 20124 was also conducted. The main problems that individuals may have when receiving deductions or that tax authorities may face in the course of tax control are highlighted, and possible ways to solve them are identified. The authors concluded, firstly, that it is necessary to form prefilled applications not only while receiving tax deductions, but also when paying PIT, for example, when a person sells real estate, cars. Secondly, it is required to enshrine in tax legislation the order of priority of providing tax deductions if a taxpayer has the right for several types of them. The obtained results can be used in developing solutions to taxation of personal income and provision of tax deductions, in legislative drafting on improvement of provisions of the state tax policy.

Personal income tax (PIT) is one of the budget-forming taxes in the Russian Federation, therefore, an important direction of tax planning is the assessment of risks arising from both tax agents (at the micro level) and the state represented by tax authorities (at the macro level). The subject of the study is tax risks on personal income tax, and the purpose is to develop proposals for their assessment and reduction. Objectives: to classify tax risks according to personal income tax; to clarify the quantitative characteristics of tax risks; to identify directions of their decline. The relevance of the study is dictated by the need to study theoretical issues and practical aspects of the emergence of tax risks on personal income tax. The main methods of study are systemic, logical, theoretical cognition, scientific abstraction. The results of the study include the following: identification of the main types of tax risks for personal income tax and the development of a tax risks matrix for their assessment depending on residence, type of contract, amount of payment, court decisions, taking into account the possibility of identification, determination of amount of risk (arrears and penalties as well as intention). Conclusions: in the paper developed proposals for the assessment and reduction of tax risks under personal income tax: on the basis of the classification of tax risk (by subject, by basis of occurrence, by elements of taxation, by connection with tax checks, by types of risks, by the time of identification of tax risk, as well as taking into account the regional specifics) the amount of possible tax risk is calculated on the example of specific income (premium, financial assistance, gift) a tax risk matrix has been developed for practical application, which will enable to assess and rank tax schemes aimed at reducing tax obligations under personal income tax.

The Oracle Cloud Machine Learning toolkit was used in the work to study time series forecasting methods. The choice of tools was dictated by conducting research at the State Tax University (Irpin) for further use of the results in the work of regional and central divisions of the state tax service, whose information systems are developed on the Oracle platform. Holt-Winters exponential smoothing algorithms, currently represented by the functions of the application programming interface for machine learning models of the PL/SQL package DBMS_DATA_MINING, were investigated. The research used personal income tax data for 2015-2023, obtained from the tax office in the Ivano-Frankivsk region. Higher accuracy (MAE=3.57%) was shown by the algorithm of the Holt-Winters multiplicative exponential smoothing model with a fading multiplicative trend and multiplicative seasonality. Oracle Machine Learning for SQL implements exponential smoothing using a state of the art state space method that incorporates a single source of error (SSOE) assumption which provides theoretical and performance advantages. Access to research results is organized using the APEX web application creation tool. The considered toolkit will help in making decisions when assessing the base of the tax potential of the region and planning tax revenues. The results of the Holt-Winters exponential smoothing model algorithms research are presented and the losses of personal income tax in Ivano-Frankivsk region in 2022 are estimated

The aim of this paper is to study whether politicians manipulate tax policy to extract private rents. We focus on the local personal income tax in the setting of Italian cities, which is a progressive instrument that allows mayors to set different rates to distinct wage groups. We exploit discontinuities in mayors' salaries, that are based on population thresholds, to study whether mayors apply lower rates to their own tax bracket, thereby distorting tax policy. The main results document large rent-seeking activity in tax policy. First, we show that when mayors's salary is exogenously located in the following tax bracket it receives a significantly lower tax rate than the previous one, compared to the control group. Second, we show that this rent-seeking activity is highly detrimental for the public treasury, with a considerable reduction in fiscal revenues. And finally, we document that the individual gain for rent-seeker politicians is rather limited and that there is no evidence of voters' punishment in the next elections. These results suggest that when tax policy is prone to be manipulated politicians do not hesitate to engage in rent-seeking activities even in case of little returns. [ABSTRACT FROM AUTHOR]

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

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

This article highlights the complexity of taxation surrounding cryptocurrency transactions due to the lack of uniform regulation, creating uncertainty for both taxpayers and tax authorities. After determining the tax obligations of individuals in taxation, a survey has been conducted to assess the level of knowledge and compliance with tax obligations related to cryptocurrencies. The survey, in which 103 people participated, reveals the confusion and errors that prevail in perceptions of the tax obligations for cryptocurrencies, particularly in transactions such as swapping and staking in personal income tax. This results in almost half of the respondents (49.5%) not declaring any of their operations with cryptocurrencies. The reasons for this include the fact that the majority of respondents (66%) find the regulation of cryptocurrencies in Spain confusing and difficult to understand. Additionally, 87.4% believe that tax agencies should provide more information and resources on the taxation of cryptocurrencies and digital assets, and that there should be clearer and more comprehensive regulation. However, it should be noted that 41.7% also consider that tax regulation discourages investment in cryptocurrencies. [ABSTRACT FROM AUTHOR]

This study introduces a new version of the adjusted present value (APV) method and ensures its consistent valuation with the cost of capital (CoC) method at the highest level of generalization. The newly developed APV version and equivalent formulae consider stochastic debt and the trade-off between corporate income taxes (CIT) and personal income taxes (PIT), as well as tax benefits and financial distress costs. The value of expected bankruptcy costs aligns with the valuation aspect, enabling practical application of the formulae by valuers. The equivalence also reflects the differing perspectives of tax shields between stockholders and debt holders when PITs are introduced. Ultimately, the results demonstrate that the equivalence in this study aligns with, and can reduce to, previous standard formulae, under their stringent assumptions. [ABSTRACT FROM AUTHOR]

Copyright of Revista Jurídica de Castilla y León is the property of Junta de Castilla y Leon, Direccion de Servicios Juridicos and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of the study was to quantify the total tax compliance costs (TCC) of individual taxpayers in South Africa for the 2017 and 2018 years of assessment as no studies were found that comprehensively quantified these costs in South Africa. A quantitative research design was followed using an online questionnaire to collect the data. Different sampling and data collection methods were used: for 2017 snowball sampling was employed providing 752 useable responses, whereas for 2018, a random sample was made possible with the assistance of the South African Revenue Service (SARS) resulting in 10 260 useable responses. The TCC for each year was calculated in three steps. First, the number of hours spent by the respondents on each tax-related activity was ascertained. Second, this time was then multiplied by an hourly rate using various methods and lastly the time value was added to the respondents' out-of-pocket costs (arising from payments to tax practitioners for assistance and from sundry expenditure). The average total TCC for 2017 was estimated at between R4 604 and R12 661 while for 2018 it was between R2 544 and R3 742. The TCC calculations provide a baseline that will assist in measuring the impact of subsequent reforms, such as the 2021 auto-assessments introduced by SARS, on TCC. [ABSTRACT FROM AUTHOR]

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

Copyright of Acta Iuris Stetinensis is the property of University of Szczecin Press / Wydawnictwo Naukowe Uniwersytetu Szczecinskiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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

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

The article analyzes the main trends in the financial capacity of development of territorial communities under the influence of the war with Russia. The dynamics of own revenues of local budgets of territorial communities across the regions of Ukraine were analyzed, taking into account the inflation index, the rate of growth of personal income tax from the financial support of military personnel, local taxes, and inter-budgetary transfers. New, war-induced, financial challenges to the development of territorial communities are highlighted, namely: unforeseeable and numerous changes in the legal field, which required LGUs to constantly monitor them and change current plans; strengthening of the asymmetry of the development of territorial communities and the dependence of the level of financial capacity of the territorial community on the presence of a registered military unit on its territory; a decrease in the revenue part of local budgets due to a decrease in the amount of local taxes, the largest fee for land, a single tax, etc.; organizational problems of local tax collection that arose during the war; a decrease in capital investments due to government-imposed restrictions on special fund expenditures, a decrease in transfers from the state budget to local budgets, in particular, the amount of educational subventions and the need to increase expenditures on general secondary education from the own revenues of local budgets of territorial communities, and others. At the same time, in the conditions of the war, the communities had new opportunities for local development, in particular, the budgets of the territorial communities were replenished at a faster rate due to income tax on the income of individuals (PIT) from the financial support of military personnel. The «big bonus» of the most financially capable communities was the reverse subsidy, which for the most part remained at the disposal of local self-government bodies, which in turn increased the asymmetry of the financial capacity of the development of territorial communities and developed undesirable effects of procrastination. [ABSTRACT FROM AUTHOR]

The regional geopolitical tensions, the changes in the regional markets of energy products and food that led to the increase of prices and the stagnation of economic growth at the level of the European Union highlighting the need to review the management of public policies. Thus, under the pressure of growing public and private debts, under the pressure of budget deficits, the fiscal policies of the EU27 states often have the unpleasant task of making substantial reforms of the taxation systems. Therefore, the article proposes the construction of a series of scenarios regarding the possibility of returning to the progressive taxation of the payroll tax in Romania. The article tries to highlight the advantages and where benefits can intervene for the structure of the national budget starting from the analysis of a series of scenarios regarding the progressive taxation of salaries and proposals are outlined in this regard. [ABSTRACT FROM AUTHOR]

Copyright of Critique of Law: Independent Legal Studies / Krytyka Prawa: Niezalezne Studia nad Prawem is the property of Akademia Leona Kozminskiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

On 23 December 2022, Law 28/2022 on start-ups entered into force introducing, among other things, some developments in the special tax framework for workers who relocate to Spain. This article compares the main features of that tax framework with those of analogous frameworks in Italy and Portugal, two countries that, due to their geographical position and economic and political context, are probably Spain's main competitors in attracting international talent. This comparative legal analysis hopes to draw principles and ideas that will help cast a critical eye on the legislator's bid to update the Spanish special tax framework. [ABSTRACT FROM AUTHOR]

The child tax credit is a tax relief under the Polish Personal Income Tax system. The purpose of this paper is to present this tax preference. Authors try to reach this objective by a detailed analysis of relevant legal provisions and jurisprudence. The main thesis of the article is that the child tax credit could have a positive impact on the birth rate in Poland provided that certain changes are introduced. In our conclusions we identify four shortcomings of the child tax credit: 1) the child tax credit is available only for taxpayers who pay PIT on general terms; 2) the child tax credit for only one child depends on the income criterion which has not been indexed since 2013; 3) the value of the child tax credit is negligible and its amount has not changed since 2015; 4) taxpayers who care for unrelated, disabled and adult persons do not have the right to the child tax credit because of the tax authorities’ narrow understanding of the maintenance obligation. Authors formulate proposals for solutions of the said shortcomings. An analysis of legal acts, relevant literature and court decisions is the primary research method employed in this paper.

The issues of choosing between proportional and progressive taxation of personal income and assessment of the principle of fair taxation in relation to these methods accompany the centuries-old history of world tax policy, which is the relevance of the research, being the subject of discussions of Russian and foreign scientists. The purpose of the study is to develop the idea of taxation of income of the population in Russia, taking into account the principle of fair taxation. The theoretical objectives of the study include an analysis of the validity of the method of taxation chosen, as well as an analysis of the progressive method of taxation, which allows for a fair redistribution of income through the progression of rates and an adequate system of tax deductions. The practical objectives of the study are to study the influence of income taxation methods on the formation of budget revenues and incomes of the population, to assess the “shadow” fiscal potential of income, to determine the level of demand and significance of tax deductions. As a result of the research, it has been scientifically proven that proportional taxation and weak progression discredit the principle of vertical equity, lead to a hidden progression in the withdrawal of income, have no obvious positive effect on capital outflow and, in combination with insurance premiums, affect the size of the potential tax base. The practical significance of the study is to develop concrete proposals for the methodological development of personal income tax through differentiated tax deductions, tax mechanisms for strengthening the institution of family and marriage, and the expansion of the tax base.

The aim of the article is a comprehensive analysis of the fiscal efficiency of personal income tax in the revenues of consolidated local budgets of both the regions of Ukraine and the city of Kyiv; identification of factors and trends that cause changes in its volume and structure. The article analyzes the tendencies of changes in the receipt of the personal income tax and military fee on the income of individuals to the budgets of different levels, determines the change in their structure; an analysis of the receipt of the personal income tax and military fee on personal income to the local budget is carried out by the components – both in general and in relation to the local budgets of the regions and the city of Kyiv; tendencies of changes in the volume and share of personal income tax paid by tax agents from the taxpayer’s income in the form of wages and financial provision of military personnel in the regional context to local budgets are analyzed; structural changes in personal income tax as a fiscally significant tax in the formation of local budget revenues have been identified. The factors influencing the change in the volume and structure of personal income tax revenues are substantiated, among which the key one is the turbulent environment in Ukraine caused by a full-scale war, relocation, destruction of the material and technical base of business or temporary loss of business activity. This led to job losses, a decrease in wages, migration of the able-bodied population to other countries and, accordingly, affected the amount of personal income tax paid by tax agents from taxpayers’ salaries. The increase in personal income tax revenues in 2022 was due to an increase in the rate of enrollment in local budgets from 60.0% to 64.0% and an increase in personal income tax on financial provision of military personnel. Other components that form the personal income tax are insignificant and occupy less than 10%, while there is no increase, due to the weakening of tax control and the ongoing tax evasion by both taxpayers and tax agents, as well as partial shadowing of business.

The article evaluates the influence of the tax progressivity of the personal income tax on tax revenue in the Czech Republic. The first part of the study deals with the analysis of tax progressivity. In the next part, the indicator of tax progressivity is used as a variable of the regression model examining its effect on tax revenue. The analysis is carried out for the period 1993-2020. For part of the period, the nominal tax rate was progressive, for part of the period, on the contrary, it was linear. This approach to solving the research topic is thus unique and creates added value to the text. This is due to the length of the examined period, the alternative approach to measuring tax progressivity, and the way the tax base from dependent activity was constructed in the Czech Republic for part of the period.

The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in the period 1993–2020. Between 1993 and 2007, the nominal tax rate was progressive, while from 2008 until the end of 2020, the nominal rate was linear.

This study investigates the correlation between state income tax and unemployment rates across the United States. Using panel data in 50 states pertaining to the period from 2006 to 2022 with different regression models, the results suggest that the state corporate and personal income tax rates are positively correlated with the state unemployment rate. Specifically, a 1% decrease in the personal income tax rate may lead to a 0.712% decrease in the state unemployment rate, and a 1% decrease in the corporate income tax rate may cause a drop of 0.328% in the state unemployment rate. In addition, the results show that a personal income tax hike is associated with an increase of 1.532% in the state unemployment rate, and a corporate income tax hike may increase the state unemployment rate by 0.78%. The results of this study are relevant in the context of increasing government spending in the US and the world. Policymakers and government officials may not want to abuse the tax policy to fund the budget deficits.

The spread of the concept of tax expenditures in many countries of the world resulted in the creation of the Global Tax Expenditures Database which included information from Ukraine where regular reporting is conducted on tax benefits which are losses of budget revenues. However, this reporting is incomplete, since it does not include tax expenditures on personal income tax. The introduction of reporting on tax expenditures on this tax puts on the agenda the problem of identifying the elements of its benchmark and tax expenditures. The purpose of this article is to substantiate their main components. The research was carried out using general scientific methods of cognition: critical analysis, combination of normative (conceptual) and positive (legal) approaches, abstract-logical and concrete, comparative analysis. Based on the results of the study, groups of elements that can be attributed to the benchmark of the tax have been identified: incomes provided from sources defined by international treaties of Ukraine; payments that do not increase the taxpayer’s income; incomes whose exemption from taxes ensures the avoidance of double taxation; expenses related to receiving income; incomes that are not included in the taxable amount due to the difficulties of their administration; exclusion from the taxable amount of the revenues that may not qualify as tax expenditures due to small amounts. Tax benefits that can be included in the budget of tax expenditures on the income tax have been identified and classified according to the form of provision and functional orientation. Although only certain provisions of the income tax legislation have been identified, their classification into subgroups may facilitate the determination of the remaining components of the benchmark and tax expenditures.

The study aims to determine the systemic prerequisites for shaping the local budgets’ tax revenue and analyze its impact on the development of municipalities in developed countries. The authors examine the impact of the following factors on the municipal budgets’ tax revenue: the behavioural patterns of economic entities (in particular, in terms of property management), the role of the state in shaping the municipal budgets’ tax revenue, and the comprehension of the nature of the tax. Using the example of defining the economic nature of personal income tax, the article proves (based on the analysis of municipal budgets’ tax revenue in EU countries) that the policy of local governments regarding the accumulation of the tax for their budgets changes as the essential characteristics of the tax change. Based on a comparison of the experience of municipalities in developed countries, the authors identify the factors influencing property taxation systems that shape property tax revenue: differences in the structure of the economy and the effects of its change, behavioural reactions of economic entities and existing traditions of property ownership in different countries, peculiarities of the property market development in various countries, etc. Trends in the structure of the economy and their potential impact on the tax capacity of local budgets are analyzed. The need for diversification of tax revenue sources to provide municipalities with an adequate level of resilience in the face of constant economic changes and permanent crises is emphasized.

The study aims to determine the systemic prerequisites for shaping the local budgets’ tax revenue and analyze its impact on the development of municipalities in developed countries. The authors examine the impact of the following factors on the municipal budgets’ tax revenue: the behavioural patterns of economic entities (in particular, in terms of property management), the role of the state in shaping the municipal budgets’ tax revenue, and the comprehension of the nature of the tax. Using the example of defining the economic nature of personal income tax, the article proves (based on the analysis of municipal budgets’ tax revenue in EU countries) that the policy of local governments regarding the accumulation of the tax for their budgets changes as the essential characteristics of the tax change. Based on a comparison of the experience of municipalities in developed countries, the authors identify the factors influencing property taxation systems that shape property tax revenue: differences in the structure of the economy and the effects of its change, behavioural reactions of economic entities and existing traditions of property ownership in different countries, peculiarities of the property market development in various countries, etc. Trends in the structure of the economy and their potential impact on the tax capacity of local budgets are analyzed. The need for diversification of tax revenue sources to provide municipalities with an adequate level of resilience in the face of constant economic changes and permanent crises is emphasized. [ABSTRACT FROM AUTHOR]

The progressiveness of the fiscal system is achieved by the personal income tax in the majority of developed countries. However, this structure generated a change in the behavior of the taxpayers. Tax inefficiency is measured through taxpayer behavior change; bunching is one of the last ways to measure that inefficiency. In the last decade, articles about bunching in direct taxation have uncovered certain common trends for any taxpayer. With this review of the literature, we have been able to learn what the lessons are and show the points where the state could increase tax efficiency. The taxpayers who opt for the grouping are those who obtain less income, and those who earn income from self-employment and companies. This knowledge makes it possible to establish the limits of what policymakers could do in the taxing subject. [ABSTRACT FROM AUTHOR]

The question of reforming the tax system is becoming increasingly urgent in the conditions of martial law and inevitable. The tax system is the basis of the country's economic development. The level of social development, indicators of GDP growth, the number of working enterprises and investments in the country are a complete reflection of the state of the country's tax system. Martial law requires immediate changes to the tax legislation adapted to the prevail ing conditions. Since the beginning of the war, the first emergency changes to tax legislation have been adopted, but the impact of martial law on the economy is extremely dynamic, which requires flexible tax legislation that provides for the rapid transformation of the tax system to any conditions, that is, a universal and stable system of laws that is able to respond to any changes in the country. But a very big problem arose between balancing the development of the economy and ensuring the country's defense system. The business has significantly reduced economic activity, has problems with working capital, closes and goes into the shadows. The state tried to stimulate business activity, including through taxes. But the low effectiveness of the tax policy of the state under the conditions of war is a problem today. Martial law is a trigger for introducing tax reforms in Ukraine. In August of last year, the project of the "10-10-10" program was presented, which provides for a reduction to 10% of the key tax rates - VAT (now - 20%), on the income of individuals (18%) and on the profit of enterprises (18%). Also, the reform provides for the cancellation of EUV and tax benefits and the establishment of the military levy at the level of 3% (instead of 1.5%). [ABSTRACT FROM AUTHOR]

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The UK Wealth Tax Commission website and the I Fiscal Studies i symposium on the wealth tax provide a fantastic set of evidence papers on wealth tax design in theory and in practice, drawing on the experience of seven different countries. They conclude that the case for the one-off wealth tax is simple to make (because the opportunities for a one-off tax, implemented promptly, to distort economic activity are limited), but the case for an annual wealth tax is more difficult - though not impossible - to make based on economic theory (in part, because of the greater scope for economic distortions in response to a recurrent tax). While wealth taxes in the past had ceiling mechanisms, such that the wealth tax liability could not exceed a fraction of income, Zucman suggests that such mechanisms are not needed if the wealth tax is applied only above a very high exemption threshold. Keywords: personal income tax; corporate income tax; wealth tax; tax avoidance and evasion; automatic exchange of information; global minimum tax; high-net-worth individuals; inequality EN personal income tax corporate income tax wealth tax tax avoidance and evasion automatic exchange of information global minimum tax high-net-worth individuals inequality 237 241 5 09/26/23 20230901 NES 230901 In his paper "Globalisation, taxation and inequality" in this issue, Gabriel Zucman argues that the current tax system is not appropriate for our times. [Extracted from the article]