Download or read book Capital Taxation Under Political Constraints written by Florian Scheuer and published by . This book was released on 2014 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies optimal dynamic tax policy under the threat of political reform. A policy will be reformed ex post if a large enough political coalition supports reform; thus, sustainable policies are those that will continue to attract enough political support in the future. We find that optimal marginal capital taxes are either progressive or U-shaped, so that savings are subsidized for the poor and/or the middle class but are taxed for the rich. U-shaped capital taxes always emerge when the salient reform threat consists of radically redistributing capital and individuals' political behavior is purely determined by economic motives.
Download or read book The Political Economy of Tax Reform written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2007-12-01 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid emergence of East Asia as an important geopolitical-economic entity has been one of the most visible and striking changes in the international economy in recent years. With that emergence has come an increased need for understanding the problems of interdependence. As a step toward meeting this need, the National Bureau of Economic Research joined with the Korea Development Institute to sponsor this volume, which focuses on the complexities of tax reform in a global economy. Experts from Taiwan, Korea, the Philippines, Japan, and Thailand, as well as the United States, Canada, and Israel examine the major tax programs of the 1980s and their domestic and international economic effects. The analyses reveal similarities between the United States and countries in East Asia in political constraints on policy making, and taken together they show how growing interdependence interacts with domestic economic and political concerns to affect issues as politically vital as tax reform. Economists, policymakers, and members of the business community will benefit from these studies.
Download or read book Should Capital be Taxed written by Yunmin Chen and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Second Best Theory of Differential Capital Taxation written by Martin S. Feldstein and published by . This book was released on 1985 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: An important proposition in the theory of efficient taxation is that, if capital income is taxed, all types of capital income should be taxed at the same rate. This conclusion has motivated extensive empirical analysis of the tax rates on different types of capital income. It has also been the basis for a variety of proposals to revise actual tax rules.The present paper emphasizes that the comventional view must be modified in the very common situation in which some capital tax rate is politically constrained to something other than its optimal value, e.g., the zero rates on the imputed income on owner-occupied housing. The formal analysis of the paper examines the case in which there are three types of capital income and one of the tax rates is arbitrarily constrained to be zero.Three general "rule of thumb" results emerge from the specific analysis: First, if the several types of capital can be regarded as independent in production, the optimal tax rates on the taxable types of capital income should depart from equality in the direction of an inverse elasticity rule. Second, in comparison to these rates, capital that is a complement to the untaxed capital should generally be taxed more heavily while capital that is a substitute for the untaxed capital should be taxed less heavily. Third, variations in the degree of complementarity or substitutability between the two types of capital should alter the two tax rates in a way that maintains a constant difference in the total taxes on each type of capital. Although these rule-of-thumb results help to modify the conventional equal-tax-rates rule in an appropriate way, the most important implication of the present analysis is that any departure from optimal taxation makes it very difficult to set other capital tax rates optimally
Download or read book Capital Taxation written by Martin S. Feldstein and published by . This book was released on 1983 with total page 512 pages. Available in PDF, EPUB and Kindle. Book excerpt: Feldstein shows how systems of taxation influence the rate and nature of capital formation--key to the development of any economy. His identification of important economic and policy questions, adroit use of modeling and new data, and careful attention to dynamics make this book a powerful addition to the literature.
Download or read book The New Dynamic Public Finance written by Narayana R. Kocherlakota and published by Princeton University Press. This book was released on 2010-07-01 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research.
Download or read book Macroeconomic Policy Credibility and Politics written by T. Persson and published by Routledge. This book was released on 2012-11-12 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: Uses a game theoretic approach to explore which economic policies are 'credible' and 'politically feasible', questions that had eluded traditional macroeconomic approaches.
Download or read book Dimensions of Tax Design written by James A. Mirrlees and published by Oxford University Press. This book was released on 2010-04-29 with total page 1360 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Review was chaired by Nobel Laureate Professor Sir James Mirrlees of the University of Cambridge and the Chinese University of Hong Kong. --
Download or read book Transition Taxation and the State written by Gerald Turley and published by Ashgate Publishing, Ltd.. This book was released on 2006 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: In economic terms three of the most important and controversial issues of our times are transition, taxation and the role of the state. This book examines the core associated problems of tax payment and collection in the context of transition from a centrally planned economy to a market economy and the persistence of the 'soft budget' constraint. While differences between the experiences of transition states vary, the attitude of the state towards the control of the tax discipline, its efficiency and vulnerability to corruption is shown to be a key issue, in particular when political constraints are often more pressing than tax design or economic constraints. This book will prove detailed and enlightening reading for all those concerned with tax administration in transition countries from both economic and political perspectives.
Download or read book Pareto Efficient Taxation and Expenditures written by Joseph E. Stiglitz and published by . This book was released on 2017 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that there is a presumption that Pareto efficient taxation entails a positive tax on capital. When tax and expenditure policies can affect the market distribution of income, those effects need to be taken into account, reducing the burden imposed on distortionary redistribution. The paper extends the 1976 Atkinson-Stiglitz results to a dynamic, overlapping generations model, correcting a misreading of the result on the desirability of a zero capital tax. That result required separability of consumption from labor and that the only unobservable differences among individuals was in (fixed) labor productivities. In a general equilibrium model, one needs to take into account the effects of policy changes on binding self-selection constraints; and with non-separability, capital taxation depends on the complementarity/substitutability of leisure during work with retirement consumption. The final section considers taxation when there are constraints on the imposition of intergenerational transfers (either political constraints or those derived from unobservability.) It constructs a simple two class model, capitalists who maximize dynastic welfare and workers who save for retirement, whose productivity can be enhanced by (publicly provided) education. It derives a simple expression for the optimal capital tax, which is positive, so long as the social welfare function is sufficiently equalitarian and the productivity of educational expenditures are sufficiently high.
Download or read book Taxation written by Martin O'Neill and published by Oxford University Press. This book was released on 2018-07-19 with total page 409 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first book to give a collective treatment of philosophical issues relating to tax. The tax system is central to the operation of states and to the ways in which states interact with individual citizens. Taxes are used by states to fund the provision of public goods and public services, to engage in direct or indirect forms of redistribution, and to mould the behaviour of individual citizens. As the contributors to this volume show, there are a number of pressing and thorny philosophical issues relating to the tax system, and these issues often connect in fascinating ways with foundational questions regarding property rights, public justification, democracy, state neutrality, stability, political psychology, and other moral and political issues. Many of these deep and fascinating philosophical questions about tax have not received as much sustained attention as they clearly merit. The aim of advancing the debate about tax in political philosophy has both general and more specific aspects, ranging across both over-arching issues regarding the tax system as a whole and more specific issues relating to particular forms of tax policy. Thinking clearly about tax is not an easy task, as much that is of central importance is missed if one proceeds at too great a level of abstraction, and issues of conceptual and normative importance often only come sharply into focus when viewed against real-world questions of implementation and feasibility. Serious philosophical work on the tax system will often therefore need to be interdisciplinary, and so the discussion in this book includes a number of scholars whose expertise spans across neighbouring disciplines to philosophy, including political science, economics, public policy, and law.
Download or read book Imposing Standards written by Martin Hearson and published by Cornell University Press. This book was released on 2021-06-15 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Imposing Standards, Martin Hearson shifts the focus of political rhetoric regarding international tax rules from tax havens and the Global North to the damaging impact of this regime on the Global South. Even when not exploited by tax dodgers, international tax standards place severe limits on the ability of developing countries to tax businesses, denying the Global South access to much-needed revenue. The international rules that allow tax avoidance by multinational corporations have dominated political debate about international tax in the United States and Europe, especially since the global financial crisis of 2007–2008. Hearson asks how developing countries willingly gave up their right to tax foreign companies, charting their assimilation into an OECD-led regime from the days of early independence to the present day. Based on interviews with treaty negotiators, policymakers and lobbyists, as well as observation at intergovernmental meetings, archival research, and fieldwork in Africa and Asia, Imposing Standards shows that capacity constraints and imperfect negotiation strategies in developing countries were exploited by capital-exporting states, shielding multinationals from taxation and depriving nations in the Global South of revenue they both need and deserve. Thanks to generous funding from the Gates Foundation, the ebook editions of this book are available as Open Access volumes from Cornell Open (cornellpress.cornell.edu/cornell-open) and other repositories.
Download or read book Growth Effects of Income and Consumption Taxes written by Mr.Gian Milesi-Ferretti and published by International Monetary Fund. This book was released on 1995-07-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital. The different channels through which these taxes affect economic growth are discussed, and it is shown that in general the taxation of factor incomes (human and physical capital) is growth-reducing. The effects of consumption taxation on growth depend crucially on the elasticity of labor supply, and therefore on the specification of the leisure activity. The paper also derives some implications for the optimal intertemporal choice of tax instruments.
Download or read book Globalization and the New Politics of Embedded Liberalism written by Jude C. Hays and published by Oxford University Press. This book was released on 2009-08-27 with total page 207 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the world economy slides into the worst recession since the 1930s, there is fear that hard times will ignite a backlash against free trade policies and globalization more generally. This book explores the political and economic institutional foundations of the bargain of embedded liberalism and the ways domestic institutions shape how governments redistribute the risks and benefits of economic globalization. The author identifies the Anglo-American democracies, because of their majoritarian polities combined with decentralized, competitive economies, as uniquely vulnerable to the contemporary challenges of globalization and the most susceptible to a backlash against it.
Download or read book Tax By Design written by Stuart Adam and published by Oxford University Press. This book was released on 2011-09 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on the findings of a commission chaired by James Mirrlees, this volume presents a coherent picture of tax reform whose aim is to identify the characteristics of a good tax system for any open developed economy, assess the extent to which the UK tax system conforms to these ideals, and recommend how it might be reformed in that direction.
Download or read book Manipulating Globalization written by Ling Chen and published by Stanford University Press. This book was released on 2018-06-12 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: The era of globalization saw China emerge as the world's manufacturing titan. However, the "made in China" model—with its reliance on cheap labor and thin profits—has begun to wane. Beginning in the 2000s, the Chinese state shifted from attracting foreign investment to promoting the technological competitiveness of domestic firms. This shift caused tensions between winners and losers, leading local bureaucrats to compete for resources in government budget, funding, and tax breaks. While bureaucrats successfully built coalitions to motivate businesses to upgrade in some cities, in others, vested interests within the government deprived businesses of developmental resources and left them in a desperate race to the bottom. In Manipulating Globalization, Ling Chen argues that the roots of coalitional variation lie in the type of foreign firms with which local governments forged alliances. Cities that initially attracted large global firms with a significant share of exports were more likely to experience manipulation from vested interests down the road compared to those that attracted smaller foreign firms. The book develops the argument with in-depth interviews and tests it with quantitative data across hundreds of Chinese cities and thousands of firms. Chen advances a new theory of economic policies in authoritarian regimes and informs debates about the nature of Chinese capitalism. Her findings shed light on state-led development and coalition formation in other emerging economies that comprise the new "globalized" generation.
Download or read book From Optimal Tax Theory to Tax Policy written by Robin Boadway and published by MIT Press. This book was released on 2012-01-27 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: An economist examines the evolution of optimal tax analysis and its influence on tax policy design. Many things inform a country's choice of tax system, including political considerations, public opinion, bureaucratic complexities, and ideas drawn from theoretical analysis. In this book, Robin Boadway examines the role of optimal tax analysis in informing and influencing tax policy design. Scholars of public economics formulate models of optimal tax-transfer systems based on normative principles that reflect efficiency and equity considerations. They use that analysis to form views about the optimal design or reform of actual tax systems that are much more complicated than their models. Boadway argues that there is an important symbiosis between ideas drawn from normative tax analysis and tax policies actually enacted. Ideas germinated by normative analyses have led to the widespread adoption of the value-added tax, the use of refundable tax credits, and various business tax reforms. Other ideas provide rationales for existing features of tax systems, including the tax treatment of retirement savings and human capital investment. Boadway charts the evolution of optimal tax analysis and discusses the lessons it holds for tax policy. He describes the theoretical challenges posed by recent findings in such fields as behavioral economics and social choice and considers how optimal tax analysis might adapt to these new paradigms. His analysis offers a timely assessment of the role that optimal tax theory has played in establishing the principles that continue to inform tax policy.
