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on Accounting and Auditing |
| By: | Sokolovska, Olena; Sokolovskyi, Dmytro |
| Abstract: | The paper examines the tax-tariff reform, recommended for Ukraine by donor organization (IMF and the World Bank), which consists in trade liberalization by way of trade tax cuts with simultaneous compensation of state tax revenue losses by VAT base broadening. We developed the mathematical model of evaluation of crossborder taxation influence on commodity flows, on economic agents’ profits and on state tax revenues, which can be considered as extension of “Devarajan” and “Emran–Stiglitz” models, with regard to possibility of tax evasion and receiving the illegally compensated VAT. The evaluation of model using data bases, prepared by Ukrainian State Statistic Committee and Customs administration of Ukraine, revealed that the expediency to reform a tax-tariff system, according to the IMF recommendations, is not clearly obvious and it depends on tax rates elasticity of size of informal sector. We find that providing the trade liberalization by way of substitution of trade tax revenues by enlarged VAT is expedient in those branches of economy, which are characterized by monopoly and oligopoly situation. |
| Keywords: | trade tax; tax-tariff reform; VAT; informal sector |
| JEL: | F13 C30 H26 |
| Date: | 2011–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42643&r=acc |
| By: | Akay, Alpaslan (IZA); Bargain, Olivier (University of Aix-Marseille II); Dolls, Mathias (IZA); Neumann, Dirk (IZA); Peichl, Andreas (IZA); Siegloch, Sebastian (IZA) |
| Abstract: | This paper offers a first empirical investigation of how labor taxation (income and payroll taxes) affects individuals' well-being. For identification, we exploit exogenous variation in tax rules over time and across demographic groups using 26 years of German panel data. We find that the tax effect on subjective well-being is significant and positive when controlling for income net of taxes. This interesting result is robust to numerous specification checks. It is consistent with several possible channels through which taxes affect welfare including public goods, insurance, redistributive taste and tax morale. |
| Keywords: | subjective well-being, taxation, public goods |
| JEL: | H21 H41 I38 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6999&r=acc |
| By: | Cici, Gjergji; Kempf, Alexander; Sorhage, Christoph |
| Abstract: | This study shows that financial advisors provide useful tax advice to their clients, being the first to provide evidence of tangible benefits delivered by financial advisors in the U.S. We find that investors who purchase mutual fund shares through financial advisors exhibit a stronger tendency of avoiding taxable distributions than investors who buy shares directly. This differential is more pronounced for distributions that have large tax implications and are hard-to-predict. Furthermore, the differential gets stronger in December but only when investors face large capital losses, consistent with financial advisors helping the former investors engage in tax-loss selling. -- |
| Keywords: | mutual funds,taxable fund distributions,financial advisors,after-tax returns |
| JEL: | G11 G24 H24 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfrwps:1209&r=acc |
| By: | Yang, Helen |
| Abstract: | A conventional theme of the literature on customary land tenure is that multiple ownership and complex tenure systems are obstacles to agricultural development. By studying the persistence of dual landownership in preindustrial China, I hypothesize that complex property norms could be the endogenous outcome of collective choice under institutional constraints, thus may not be inefficient per se. Dual ownership acted as a tax shelter for heavily taxed peasants who colluded with lightly taxed gentry to maximize the value of land. I show empirically that as gentry's tax privilege declined after the tax reform, peasants started to consolidate landownership.The dual owner system provided a solution to the land-use- inefficiency problem emphasized by David Ricardo: Under unequal taxation, land would end up owned by those with stronger political influence and preferential tax rates rather than by those best able to use it. |
| Keywords: | Economic History; Dual Ownership; Tax Shelter; Tax Inequality; Double Cropping; Preindustrial China; Customary Tenure |
| JEL: | N45 P48 |
| Date: | 2012–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42689&r=acc |
| By: | Ackermann, Hagen; Fochmann, Martin; Mihm, Benedikt |
| Abstract: | We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant differences after intervention, even though the net income is identical in all our treatments and thus the decision pattern of investors should be constant. In particular, we observe that the willingness to invest in the risky asset decreases markedly when an income tax has to be paid or when a subsidy is paid. If we combine both a tax and a subsidy, this effect intensifies. -- |
| Keywords: | tax perception,risk-taking behavior,portfolio choice,distorting taxation,tax,subsidy,behavioral economics |
| JEL: | C91 D14 H24 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:arqudp:138&r=acc |
| By: | Bartels, Charlotte |
| Abstract: | Generous income support programs as provided by European welfare states have often been blamed to reduce work incentives for lower income classes and to increase durations of unemployment. Standard studies measure work incentives based on annual income concepts. This paper analyzes how work incentives inherent in the German tax-benefit system evolve when extending the time horizon to three years (long-term). Participation tax rates are computed for 3-year periods 1995-1997 and 2005-2007 to reveal potential effects of the labor market reforms between 2003 and 2005. Results show that long-term work incentives increased even more than short-term work incentives. Particularly for middle-income individuals, this is largely explained by the abolition of earnings-related unemployment assistance. -- |
| Keywords: | welfare,work incentives,unemployment,unemployment insurance |
| JEL: | H31 J65 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201220&r=acc |
| By: | Agnès Bénassy-Quéré (Centre d'Economie de la Sorbonne - Paris School of Economics); Guillaume Roussellet (CREST-ENSAE) |
| Abstract: | We provide a first attempt to include off-balance sheet, implicit insurance to SIFIs into a consistent assessment of fiscal sustainability, for 27 countries of the European Union. We first calculate tax gaps à la Blanchard (1990) and Blanchard et al. (1990). We then introduce two alternative measures of implicit off-balance sheet liabilities related to the risk of a systemic bank crisis. The first one relies of microeconomic data at the bank level. The second one relies on econometric estimations of the probability and the cost of a systemic banking crisis, based on historical data. The former approach provides an upper evaluation of the fiscal cost of systemic banking crises, whereas the latter one provides a lower one. Hence, we believe that the combined use of these two methodologies helps to gauge the range of fiscal risk. |
| Keywords: | Fiscal sustainability, tax gap, systemic banking risk, off-balance sheet liabilities. |
| JEL: | H21 H23 J41 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:12077&r=acc |