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on Public Finance |
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Issue of 2023‒08‒14
five papers chosen by |
| By: | Priyaranjan Jha; Rahul Mukherjee |
| Abstract: | This paper studies the effects of globalization on the ability of governments to generate tax revenues for the financing of national welfare states. In this context, it summarizes the theoretical predictions of various economic models of tax competition between countries and discusses the role of factor mobility and country-specific characteristics such as size and factor abundance. It then draws on existing empirical evidence to outline the effects of globalization on capital, labor and consumption taxes. It touches on recent trends in income tax incentives for highly skilled workers, the challenges related to digital platforms, and ends with a discussion of recent attempts at international tax coordination among countries, including the OECD BEPS initiative. |
| Keywords: | globalization, welfare state, tax competition, corporate taxation, income taxation, global tax coordination |
| JEL: | F21 F22 F23 F62 F68 H11 H21 H25 H71 J61 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10522&r=pub |
| By: | Ms. Katherine Baer; Ruud A. de Mooij; Mr. Shafik Hebous; Mr. Michael Keen |
| Abstract: | Policymakers are struggling to accommodate cryptocurrencies within tax systems not designed to handle them; this paper reviews the issues that arise. The greatest challenges are for implementation: crypto’s quasi-anonymity is an inherent obstacle to third-party reporting. Design problems arise from cryptocurrencies’ dual nature as investment assets and means of payment: more straightforward is a compelling case for corrective taxation of carbon-intensive mining. Ownership is highly concentrated at the top, but many crypto investors have only moderate incomes. The capital gains tax revenue at stake worldwide may be in the tens of billions of dollars, but the more profound risks may ultimately be for VAT/sales taxes. |
| Keywords: | Cryptocurrency; virtual assets; tax evasion; tax compliance; Bitcoin |
| Date: | 2023–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/144&r=pub |
| By: | Congressional Budget Office |
| Abstract: | In CBO’s most recent extended baseline projections, federal debt held by the public rises from 98 percent of GDP in 2023 to 181 percent of GDP in 2053—exceeding any previously recorded level and on track to increase further. |
| JEL: | E20 E60 E61 E62 E66 H50 H55 H60 H61 H62 H63 H68 |
| Date: | 2023–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:59233&r=pub |
| By: | Mr. Antonio David; Can Sever |
| Abstract: | Unanticipated changes in tax policy are likely to have different macroeconomic effects compared to anticipated changes due to several mechanisms, including fiscal foresight and policy uncertainty. It is therefore important to understand what drives such policy surprises. We explore the nature of unanticipated tax policy changes by focusing on a political economy determinant of those events, namely the timing of elections. Using monthly data for 22 advanced economies and emerging markets over the period 1990-2018, we show that implementation lags tend to be significantly longer for tax policy change announcements that are made during the pre-election periods, thereby leading to a lower likelihood of “tax news shocks”. We also find that implementation lags become much shorter for tax policy changes that are announced in the aftermath of elections, generating more frequent tax news shocks. This pattern remains similar for different tax measures or types of taxes. The findings are robust to a number of checks, including alternative definitions of tax news shocks, or to controlling for various economic and institutional factors. |
| Keywords: | Tax Shocks; Electoral Cycles; Political Economy |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/139&r=pub |
| By: | Emily Y. Lin; Joel Slemrod; Evelyn A. Smith; Alexander Yuskavage |
| Abstract: | Married couples filing a joint return put the male name first 88.1% of the time in tax year 2020, down from 97.3% in 1996. The man’s name is more likely to go first the larger is the fraction of the couple’s allocable income that goes to him, and the older is the couple. Based on state averages, putting the man’s name first is strongly associated with conservative political attitudes, religiosity, and a survey-based measure of sexist attitudes. Risk-taking and tax noncompliance are both associated with the man’s name going first. |
| JEL: | H20 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31404&r=pub |