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Tax Policy (tax + policy)
Selected AbstractsEarnings Management to Influence Tax Policy: Evidence from Large Malaysian FirmsJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2005Ajay Adhikari This study investigates the link between effective tax rates (ETR) and earnings management in a non-Western context. It examines the use of accounting choice by Malaysian firms in response to an anticipated change in tax policy. We predict and find that large Malaysian firms with low effective tax rates decrease book income prior to a reduction in corporate tax in order to influence tax policy. Our empirical results are consistent with prior evidence in the US, that firms use accounting choice to realize economic objectives. The Malaysian evidence suggests that the result of a positive association between ETR and earnings management can be generalized outside the US context. [source] Personal Income Tax Policy in China and the United States: A Comparative AnalysisPUBLIC ADMINISTRATION REVIEW, Issue 2009Hua Xu Personal income tax has grown in importance in China's revenue system. Revenue from personal income tax was more than 2 trillion RMB yuan for the first half of 2008, a 27 percent increase from the previous year. And while similarities exist between China and the United States, distinctive features separate the two. Hua Xu of Auburn University at Montgomery and Huiyu Cui of Dongbei University of Finance and Economics underscore the need for equitable personal income tax reform in China. Using lessons from the United States, an agenda for future research on tax policy is outlined. [source] Tax Expenditure Budgets, Budget Policy, and Tax Policy: Confusion in the StatesPUBLIC BUDGETING AND FINANCE, Issue 4 2002John L. Mikesell A tax expenditure budget should contribute to efficient and effective public decisions by quantifying the division in the tax structure between provisions that represent revenue policy (distribute the cost of government according to the legislated tax base) and parts that represent budget policy (substitute for direct spending). For this transparency to have the desired impact, however, the tax expenditure budget process and the direct expenditure process must be properly integrated and the tax expenditure budget must make an accurate division between the parts of the tax structure. A review of the 33 states with tax expenditure systems shows many weaknesses in application of the concept and poor linkage to the direct spending budget system. Their most significant flaw is in dividing the tax structure into normal and preference elements; states need greater attention to defining their basic tax structure if they are to have a meaningful tax expenditure budget. [source] Environmental Tax Policy and Long-Run Economic GrowthTHE JAPANESE ECONOMIC REVIEW, Issue 2 2003Tetsuo Ono This paper focuses on two competing effects of environmental taxation on long-run economic growth. One is a negative force, which hampers production; the other is a positive force, which increases the level of environmental quality bequeathed to future generations. The analysis shows that there exists a critical level of the tax that balances one force with the other. If the tax is initially set below (or above) the critical level, then raising the tax rate is beneficial (or harmful) to economic growth. JEL Classification Numbers: D62, D91, H26, O11, O30, Q20 [source] Fiscal Transfers and Distributive Conflict in a Simple Endogenous Growth Model with UnemploymentGERMAN ECONOMIC REVIEW, Issue 1 2007Luigi Bonatti Capital,labor conflict; endogenous growth; politico-economic models; tax burden; welfare reforms Abstract. In the simplified formal treatment proposed in this paper, a decrease in a policy parameter , the ratio of total tax revenues to GDP , can monotonically increase long-term growth rate and may lead to a higher employment level. This notwithstanding, the paper shows that the redistributive implications of such a decrease may induce the wage earners to oppose it. As a consequence, policy-makers reflecting social preferences may undertake redistributive transfers generating persistent unemployment and lowering growth even if commitment technologies allowing them to follow preannounced tax policies were feasible. [source] Robust Methods for the Analysis of Income Distribution, Inequality and PovertyINTERNATIONAL STATISTICAL REVIEW, Issue 3 2000Maria-Pia Victoria-Feser Summary Income distribution embeds a large field of research subjects in economics. It is important to study how incomes are distributed among the members of a population in order for example to determine tax policies for redistribution to decrease inequality, or to implement social policies to reduce poverty. The available data come mostly from surveys (and not censuses as it is often believed) and often subject to long debates about their reliability because the sources of errors are numerous. Moreover the forms in which the data are availabe is not always as one would expect, i.e. complete and continuous (microdata) but one also can only have data in a grouped form (in income classes) and/or truncated data where a portion of the original data has been omitted from the sample or simply not recorded. Because of these data features, it is important to complement classical statistical procedures with robust ones. In tis paper such methods are presented, especially for model selection, model fitting with several types of data, inequality and poverty analysis and ordering tools. The approach is based on the Influence Function (IF) developed by Hampel (1974) and further developed by Hampel, Ronchetti, Rousseeuw & Stahel (1986). It is also shown through the analysis of real UK and Tunisian data, that robust techniques can give another picture of income distribution, inequality or poverty when compared to classical ones. [source] The Globalization of Taxation?INTERNATIONAL STUDIES QUARTERLY, Issue 2 2003Electronic Commerce, the Transformation of the State The anticipated growth of new communications technologies, including the Internet and other digital networks, will make it increasingly difficult for states to tax global commerce effectively. Greater harmonization and coordination of national tax policies will likely be required in the coming years in order to address this problem. Given that the history of the state is inseparable from the history of taxation, this "globalization of taxation" could have far-reaching political implications. The modern state itself emerged out of a fiscal crisis of medieval European feudalism, which by the 14th and 15th centuries was increasingly incapable of raising sufficient revenues to support the mounting expenses of warfare. If new developments in the technology of commerce are now undermining the efficiency of the state as an autonomous taxing entity, fiscal pressures may produce a similar shift in de facto political authority away from the state and toward whatever international mechanisms are created to expedite the taxation of these new forms of commerce. [source] Bonus of rebate?: the impact of income framing on spending and savingJOURNAL OF BEHAVIORAL DECISION MAKING, Issue 3 2006Nicholas Epley Abstract All income increases a person's absolute wealth, but consumption decisions may be based more heavily on perceived changes in wealth. Change is computed by comparing a current state with a former state, and we predicted that people would be more likely to spend income framed as a gain from a current wealth state than income framed as a return to a prior state. Four experiments confirmed this prediction on people's memory for spending of a government tax rebate (Experiment 1), on unobtrusive self-report measures of spending an unexpected windfall (Experiments 2 and 3), and on actual spending on items for sale in a laboratory experiment (Experiment 4). These results can be explained, at least in part, by the reference points implied in the framing of income (follow-ups to Experiments 1 and 4). Discussion focuses on implications for the consumption of other commodities, assessments of risk, and government tax policies. Copyright © 2006 John Wiley & Sons, Ltd. [source] Electoral Systems, Legislative Process, and Income TaxationJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 1 2000Yan Chen We characterize the equilibrium income tax schedules and the optimality conditions under two types of political institutions, a two-party plurality system with a single district, and one with multiple districts where tax policies are determined through a legislature. It is shown that the exogenous social welfare functions in the optimal taxation literature can be endogenously determined by explicitly modeling the political institutions, which put different welfare weights on different subsets of the population. This paper also extends the Coughlin probabilistic voting model and the Baron,Ferejohn legislative bargaining model to a function space. [source] When States Discriminate: The Non-uniform Tax Treatment of Municipal Bond InterestPUBLIC ADMINISTRATION REVIEW, Issue 3 2009Dwight V. Denison There is a long history of states using tax systems to encourage residents to invest in bonds issued by jurisdictions within their state. This preferential or discriminatory tax treatment was ruled unconstitutional in 2006 by the Kentucky Court of Appeals. The Kentucky court decision, which sets the stage for this essay, was overturned by the U.S. Supreme Court in 2008. This essay addresses the possible implications of this and similar discriminatory tax policies. Such discriminatory policies are the foundation of the municipal bond market, and altering the practice would have significant implications for revenue collections and borrowing costs in most states and localities. While the Supreme Court's position has been rendered, the case has caused policy makers and administrators to scrutinize discriminatory tax policies and their impact on budgets and borrowing costs. [source] Wage differentials and state-private sector employment choice in Yugoslavia*THE ECONOMICS OF TRANSITION, Issue 3 2003Michael M. Lokshin Abstract In this study we use the newly available Yugoslavian Labor Force Survey data to investigate wage differentials and employment decisions in the state and private sectors in Yugoslavia. For the analysis we use three empirical models that rely on different statistical assumptions. We extend the standard switching regression model to allow non-normality in the joint distribution of the error terms. After correcting for the sector selection bias and controlling for workers' characteristics we find a private sector wage advantage. The wage premium is largest for workers with low education levels and declining for workers with higher educational levels. Given the regulatory and tax policies that pushed the private sector into the informal sphere of the economy during the period covered by our data, we argue that the state/private wage gap is likely to grow in the future. This will make it increasingly difficult for the state sector to attract and retain highly skilled employees. [source] TWO TAXATION AGENDAS: THE GALLOP GOVERNMENT'S FIRST TERMECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 1 2005Michael McLure This essay reviews state taxation policy in Western Australia over the Gallop Government's first term of office. Two tax agendas emerged, one concerning reform of the State's tax system and the other concerning measures to increase the tax yield in response to mid-term fiscal stress from unanticipated growth in expenditure. It is suggested that the lack of integration of these two agendas represented a lost policy opportunity, as integration would have provided the potential to implement a much more ambitious tax reform program than that realised by the Government. The lack of integration is partly attributed to the unrealistically low forward estimates of public expenditure outlined in the Government's first budget, as this served to mask the need for additional taxation revenue (and the consequent desirability of an integrated whole-of-term taxation policy) at the very time that reform measures were being actively contemplated. As a consequence, the dominant feature of the Government's first-term tax policy was not reform, but the introduction of large mid-term revenue-raising measures, especially increases in the State's highly inefficient conveyance duty. [source] Policy Transfer in the European Union: Institutional Isomorphism as a Source of LegitimacyGOVERNANCE, Issue 1 2000Claudio M. RadaelliArticle first published online: 17 DEC 200 This article examines public policy in the European Union (EU) by drawing upon the framework of policy transfer, which has been recently refined by comparativists, and the concept of isomorphism developed within organizational theory. Three case studies,namely, the single currency, tax policy and media ownership policy,are discussed and compared with the aim of assessing the potential of isomorphism for the analysis of policy dif-fusion. The author argues that European institutions, which have a serious limitation in terms of legitimacy, stimulate policy transfer by catalyzing isomorphic processes. Policy transfer, however, is constrained when there are no national cases to be imitated. Yet European institutions, most notably the European Commission, can overcome the problem by "inseminating" solutions into national political systems. [source] Consumer sensitivity to changes in tax policy on consumption of alcoholINTERNATIONAL JOURNAL OF CONSUMER STUDIES, Issue 3 2006David E. Smith Abstract Marketers and economists have followed the consumption patterns of alcoholic beverages for many years. Public officials have studied the negative effects of consuming alcohol and have advocated a variety of measures to curtail consumption. Previous studies have also measured the price elasticity. This comparative study is based on a 40-year analysis, and compares the consumption patterns for beer, spirits and wine in three Nordic countries. Although the cultural context of Denmark, Norway and Sweden are similar, nevertheless significant differences in the patterns of consumption and prices for alcoholic beverages have been evidenced overtime. A comparison of the per capita drinking patterns and the taxation effectiveness are presented. Even though the elasticities varied, the data indicate relative sensitivity to price changes and a decline in spirits consumption as well as switching effects to lower alcohol-content beverages. [source] Government,Business Strategies in EU,US Economic Relations:JCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 3 2002The Lessons of the Foreign Sales Corporations Issue The increasingly complex character of the US,EU economic relationship is well understood. Within this relationship, trade politics is an important setting for the interaction of firms, states and civil society. Focusing on a highly significant transatlantic trade dispute relating to a US tax policy (called foreign sales corporations), the article explores the business,government interactions generated. We conclude that such cases illustrate how the integrated character of the transatlantic economy limits the tactical options for all policy players and produces patterns of interaction between public and private actors in which both can come to assume significant roles. [source] Earnings Management to Influence Tax Policy: Evidence from Large Malaysian FirmsJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2005Ajay Adhikari This study investigates the link between effective tax rates (ETR) and earnings management in a non-Western context. It examines the use of accounting choice by Malaysian firms in response to an anticipated change in tax policy. We predict and find that large Malaysian firms with low effective tax rates decrease book income prior to a reduction in corporate tax in order to influence tax policy. Our empirical results are consistent with prior evidence in the US, that firms use accounting choice to realize economic objectives. The Malaysian evidence suggests that the result of a positive association between ETR and earnings management can be generalized outside the US context. [source] Contemporary U.S. tax policyJOURNAL OF POLICY ANALYSIS AND MANAGEMENT, Issue 3 2005James R. Hines Jr. [source] Using Excise Taxes to Finance State Government: Do Neighboring State Taxation Policy and Cross-Border Markets Matter?JOURNAL OF REGIONAL SCIENCE, Issue 4 2002Michael A. Nelson In this paper the excise tax policy of U.S. state governments is analyzed with special attention to how this policy is influenced by the level of excise taxation in neighboring states, "border-tax effects," and the relative size of the market located across state boundaries. Using a panel data set, state policies towards the taxation of cigarettes, all alcoholic beverages, beer, distilled liquor, motor fuel, and insurance are investigated within the context of a vote-maximizing model of collective decision making. The role of the industry in that state whose goods and services are singled out for special taxation is also examined. [source] Personal Income Tax Policy in China and the United States: A Comparative AnalysisPUBLIC ADMINISTRATION REVIEW, Issue 2009Hua Xu Personal income tax has grown in importance in China's revenue system. Revenue from personal income tax was more than 2 trillion RMB yuan for the first half of 2008, a 27 percent increase from the previous year. And while similarities exist between China and the United States, distinctive features separate the two. Hua Xu of Auburn University at Montgomery and Huiyu Cui of Dongbei University of Finance and Economics underscore the need for equitable personal income tax reform in China. Using lessons from the United States, an agenda for future research on tax policy is outlined. [source] PROFIT TAX AND FIRM MOBILITY IN A THREE-COUNTRY MODELAUSTRALIAN ECONOMIC PAPERS, Issue 2 2010WATARU JOHDO We construct a three-country model that incorporates international relocation by imperfectly competitive firms and examine both the effects of each country's profit tax reduction on the consumption and welfare of all countries, and the incentive for the countries to decrease the profit tax. In such a model, both the terms of trade and international relocation of firms offer the key to understanding the impacts of one country's profit tax policy. In particular, we note that the relocation of firms from the other two countries is positively related to the wage incomes of the third country through a shift in labour demand, and the terms-of-trade improvement is not only positively related to the wage incomes, but also negatively related to profit incomes through a shift in world consumption demand. We show that (i) in a three-country world economy, regardless of the reduction's source, the profit tax reduction of each country leads to relocation of firms away from foreign countries toward its own economy and deteriorates the terms of trade of its economy and (ii) this becomes a ,beggar-thy-neighbour' policy in the sense that it lowers the welfare of the other foreign countries. [source] Taxation and Investment Decisions: A Real Options ApproachAUSTRALIAN ECONOMIC PAPERS, Issue 1 2001Elettra Agliardi The purpose of the paper is to analyse the impact of the tax system on the firm's incentives to invest and disinvest in an uncertain environment. This paper follows the real options approach, which allows us to investigate the value to a firm of waiting to invest and/or disinvest, when payoffs are stochastic and investments partially reversible. The implications for the magnitude and directions of the effects of tax policy are studied; also the case of tax policy uncertainty is examined. [source] | |||||||||||||||||||||||||