Download or read book Anticipated Tax Reforms and Temporary Tax Cuts written by Timo Trimborn and published by . This book was released on 2008 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconomic studies of tax policy in dynamic general equilibrium usually assume that reforms hit the economy unexpectedly and last forever. Here, we explore how previous results change when we allow policy changes to be pre-announced and of finite duration and when these facts are anticipated by households and firms. Quantitatively we demonstrate a headstart advantage from pre-announcement that is never caught up by a surprising reform. The welfare gain from announcement of a corporate tax cut, for example, is estimated to be around 10 percent of the total gain from the reform. We show that adjustment dynamics of important variables like firm value, dividend payout, and investment differs qualitatively depending on whether the reform comes expected or not. We are also able to demonstrate a genuine welfare gain from temporary tax cuts. Impulse responses generated by our numerical method can be retraced by phase diagram analysis which facilitates explanation and interpretation of the produced results.
Download or read book Tax Withholding and Estimated Tax written by and published by . This book was released on 1999 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Do Temporary Business Tax Cuts Matter A General Equilibrium Analysis written by William Gbohoui and published by International Monetary Fund. This book was released on 2019-02-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a dynamic general equilibrium model to assess the effects of temporary business tax cuts. First, the analysis extends the Ricardian equivalence result to an environment with production and establishes that a temporary tax cut financed by a future tax-increase has no real effect if the tax is lump-sum and capital markets are perfect. Second, it shows that in the presence of financing frictions which raise the cost of investment, the policy temporarily relaxes the financing constraint thereby reducing the marginal cost of investment. This direct effect implies positive marginal propensities to invest out of tax cuts. Third, when the tax is distortionary, the expectation of high future tax rates reduces the expected marginal return on investment mitigating the direct stimulative effects.
Download or read book Tax Cuts written by James S. Larson and published by Nova Publishers. This book was released on 2003 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: It would be difficult to find a more heated topic in American political circles than tax cuts. Do they help the economy, the rich, or the middle class? Or do they harm the economy? Do the rich benefit the most and should they? Tax cuts are closely tied to the Tax Code which very few people truly understand. The new book tries to make sense out of this impenetrable jungle of issues, projections and actual tax cuts. Contents: Preface; Tax Cut Bills in 2003: A Comparison; Across-the-Board Tax Cuts: Economic Issues; Tax Cuts, the Business Cycle, and Economic Growth: A Macroeconomic Analysis; Using Business Tax Cuts to Stimulate the Economy; Tax Cuts and Economic Stimulus: How Effective Are the Alternatives?; Economic and Revenue Effects of Permanent and Temporary Capital Gains Tax Cuts; The Individual Alternative Minimum Tax: Interaction With Marriage Penalty Relief and Other Tax Cuts; Major Tax Issues; Index.
Download or read book Fairness Or Folly written by Richard A. Lindsey and published by Createspace Independent Publishing Platform. This book was released on 2018-01-23 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fairness or Folly is a "real world" guide to the highlights of the temporary tax reform of the Tax Cuts and Jobs Act. "The hardest thing in the world to understand is the income tax," according to Albert Einstein. Congress passes laws that are effective this year, but not next; laws that are effective the first Tuesday in February, but expire the third Thursday in November. It's maddening! It's impossible for the average person to keep up, much less comprehend all the temporary changes in the Tax Cuts and Jobs Act. This sweeping tax reform law has dramatically changed the tax landscape. It is without a doubt the most comprehensive tax overhaul the U.S. has seen in over three decades. The Republicans bill it as creating fairness among taxpayers, while the Democrats decry it as folly.
Download or read book Make Taxes Great Again written by Patrice Tudor and published by AuthorHouse. This book was released on 2018-12-10 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: WHY IT’S IMPERATIVE THAT YOU OWN THIS BOOK: Find out what is good, bad and ugly about the Tax Cuts & Jobs Act (TCJA) and how it will affect you. Breaks down the complicated tax laws into plain language tax tips that are simple and easy to understand. Brings clarity to the monumental tax reform Find out the importance of why you should conduct a paycheck checkup Discover how tax reform has impacted Unemployment, Employers and Businesses
Download or read book The Budget and Economic Outlook written by and published by . This book was released on 2008 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Phased in Tax Cuts and Economic Activity written by Christopher L. House and published by . This book was released on 2004 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Phased-in tax reductions are a common feature of tax legislation. This paper uses a dynamic general equilibrium model to quantify the effects of delaying tax cuts. According to the analysis of the model, the phased-in tax cuts of the 2001 tax law substantially reduced employment, output, and investment during the phase-in period. In contrast, the immediate tax cuts of the 2003 tax law provided significant incentives for immediate production and investment. The paper argues that the rules and accounting procedures used by Congress for formulating tax policy have a significant impact in shaping the details of tax policy and led to the phase-ins, sunsets, and temporary tax changes in both the 2001 and 2003 tax laws.
Download or read book Medical and Dental Expenses written by and published by . This book was released on 1990 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Automatic Fiscal Policies to Combat Recessions written by Laurence S. Seidman and published by Routledge. This book was released on 2015-04-08 with total page 255 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawing on the most prominent research in the field, this timely book offers bold new fiscal policies that can complement current automatic stabilizers and counter-cyclical monetary policy to help combat recessions. Dr. Seidman argues for an independent fiscal policy board or the Federal Reserve to decide changes in the magnitude of Congress's fiscal policy package of stimulus or restraint, with recommendations going into effect immediately, subject only to Congressional override.
Download or read book A Citizen s Guide to the New Tax Reforms written by Joseph A. Pechman and published by . This book was released on 1985 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic and Political Perspectives on Recent Tax Reform in the United States written by Michael J. Boskin and published by . This book was released on 1987 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Short term Tax Cuts Long term Stimulus written by James Cloyne and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the persistent effects of temporary changes in U.S. federal corporate and personal income tax rates using a narrative identification approach. A corporate income tax cut leads to a sustained increase in GDP and productivity, with peak effects between five and eight years. R&D spending and capital investment display hump-shaped responses while hours worked and employment are much less affected. In contrast, personal income tax cuts trigger a short-lived boost to GDP, productivity and hours worked but have no long-term effects. We develop and estimate an endogenous growth model with variable factor utilization and show that these features generate a pro-cyclical response of productivity which is key to account for our empirical findings.
Download or read book Macroeconomic Effects of Tax Rate and Base Changes Evidence from Fiscal Consolidations written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2018-09-28 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.
Download or read book Tax Cuts and Tax Reform written by John Charles Daly and published by . This book was released on 1978 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Tax Reform written by Jane Gravelle and published by Createspace Independent Publishing Platform. This book was released on 2017-10-10 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interest in corporate tax reform that lowers the rate and broadens the base has developed in the past several years. Some discussions by economists in opinion pieces have suggested there is an urgent need to lower the corporate tax rate, but not necessarily to broaden the tax base, an approach that presents some difficulties given current budget pressures. Others see the corporate tax as a potential source of revenue. Arguments for lowering the corporate tax rate include the traditional concerns about economic distortions arising from the corporate tax and newer concerns arising from the increasingly global nature of the economy. Some claims have been made that lowering the corporate tax rate would raise revenue because of the behavioral responses, an effect that is linked to an open economy. Although the corporate tax has generally been viewed as contributing to a more progressive tax system because the burden falls on capital income and thus on higher-income individuals, claims have also been made that the burden falls not on owners of capital, but on labor income. The analysis in this report suggests that many of the concerns expressed about the corporate tax are not supported by empirical evidence. Claims that behavioral responses could cause revenues to rise if rates were cut do not hold up on either a theoretical or an empirical basis. Studies that purport to show a revenue-maximizing corporate tax rate of 30% (a rate lower than the current statutory tax rate) contain econometric errors that lead to biased and inconsistent results; when those problems are corrected the results disappear. Cross-country studies to provide direct evidence showing that the burden of the corporate tax actually falls on labor yield unreasonable results and prove to suffer from econometric flaws that also lead to a disappearance of the results when corrected, in those cases where data were obtained and the results replicated. Many studies that have been cited are not relevant to the United States because they reflect wage bargaining approaches and unions have virtually disappeared from the private sector in the United States. Overall, the evidence suggests that the tax is largely borne by capital. Similarly, claims that high U.S. tax rates will create problems for the United States in a global economy suffer from a misrepresentation of the U.S. tax rate compared with other countries and are less important when capital is imperfectly mobile, as it appears to be. Although these new arguments appear to rely on questionable methods, the traditional concerns about the corporate tax appear valid. While an argument may be made that the tax is still needed as a backstop to individual tax collections, it does result in some economic distortions. These economic distortions, however, have declined substantially over time as corporate rates and shares of output have fallen. Moreover, it is difficult to lower the corporate tax without creating a way of sheltering individual income given the low tax rates on dividends and capital gains. A number of revenue-neutral changes are available that could reduce these distortions, allow for a lower corporate statutory tax rate, and lead to a more efficient corporate tax system. These changes include base broadening, reducing the benefits of debt finance through inflation indexing, taxing large pass-through firms as corporations, and reducing the tax at the firm level offset by an increase at the individual level. Nevertheless, the scope for reducing the tax rate in a revenue-neutral way may be limited.
Download or read book Problems to Keep in Mind when it Comes to Tax Reform written by William Fellner and published by . This book was released on 1977 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
