Search results for "Direct tax"
showing 10 items of 29 documents
Difusión y localización industrial en España durante el primer tercio del siglo XX
1999
Editada en la Fundación Empresa Pública El propósito del trabajo es estudiar la difusión de los cambios hacia una estructura industrial manufacturera diversificada en las diferentes regiones españolas durante el primer tercio del siglo XX y la evaluación de los factores que explican el crecimiento de la industria manufacturera de estas regiones. Los factores considerados son las economías de localización (extemalidades inarshallianas) y las economías de urbanización (extemalidades de Jacobs). Como no existe un censo industrial en España, se ha estimado una reconstrucción de los impuestos directos industriales en 1913 y 1929 para 50 provincias y 20 manufacturas. En este período de creación d…
Tax Liability and Tax Evasion in a Competitive Labor Market
2005
In a competitive labor market, a change in the legal incidence of a tax on labor will not alter employment if tax obligations are fulfilled. However, this irrelevance result may no longer apply if taxes can be evaded. In particular, a shift from payroll to income taxes will lower employment. This will be the case if workers exhibit constant absolute risk aversion, have a utility function, which is strongly separable in income and the disutility from working, and the penalty for evasion is not proportional to the amount of taxes evaded. Accordingly, tax evasion opportunities can make the legal incidence of a tax on labor an important determinant of its economic incidence.
Tax authority to the European Parliament?
1995
In this paper we analyze whether countries of the EC community should plead for a decentralized system to finance the European funds rather than using a uniform tax imposed by the European parliament. The analysis is within a multistage game-theoretic framework in which the implication of the financing system of a confederation on the investment behavior in the respective states is considered. The paper is in the tradition of the literature which claims that from a view of global efficiency property-rights structures inducing ex-post efficient allocations may be worse than a system leading to an ex-post inefficient allocation. For this specific economic issue we elucidate the tradeoff betwe…
Perspectives of tax reforms in Croatia: expert opinion survey
2014
In order to shape tax reform it is necessary objectively to assess the current stateof-the- art of and of the outlook for the tax system. After having reviewed all previous reforms in the light of the consumption-based (interest- adjusted) concept of direct taxation, which was almost systematically implemented in Croatia in 1994, we present the results of a broad expert opinion survey about the Croatian tax system. The most interesting results suggest the maintenance/(re)introduction of different tax incentives and reduced VAT rates, rejection of a flat tax as well as decrease of tax brackets, an increase in alcohol and tobacco duties, the introduction of a financial activities tax, a furth…
The Effects of Fiscal Redistribution
2016
Every discussion on income distribution and inequality distinguishes between market income, namely income before tax and without transfers, and disposable, or net income, which is after tax and including transfers. Hence, taxation and transfers create a redistribution of income. This redistribution is usually progressive, as direct taxes and subsidies are progressive, and thus it is supposed to reduce inequality, in the transition from market income to disposable income. This paper focuses on measuring the effect of fiscal policy in income redistribution and in reducing inequality. It also examines which type of fiscal policy is most strongly related to the redistribution of income, are the…
Income distribution in Spain: 2004-2013
2017
Este documento presenta una revisión sobre la evolución de la distribución de la renta en España en el período 2004-2013. El objetivo es examinar el papel que ha jugado el mercado de trabajo en el incremento de las desigualdades, así como el efecto que han tenido las diversas actuaciones públicas a través de transferencias monetarias, impuestos directos y el suministro de servicios públicos en especie. En la metodología se usan índices clásicos de desigualdad aplicados a la Encuesta de Condiciones de Vida. Se concluye que durante este período el incremento en las desigualdades puede atribuirse con nitidez al deterioro del mercado de trabajo tras la crisis de 2007. This paper analyses the ev…
Inequality Effects of Inflation: The 'Bracket Creep' Effect in the Spanish Income Tax System
2005
The aim of this research is to analyse how inflation induced erosions of the nominally defined items of the tax rules of the Spanish income tax system may change distributional and revenue generating properties of income taxes. We further investigate the effects of the tax reform carried out in 2003. Although the Spanish government claimed that this reform would reduce tax liabilities, this is not so clear as many argue that this reform only offset the effects of inflation suffered by the population since 1999. Using the European Community Household Panel (ECHP) data set we aim to shed some light on the above issues through microsimulation techniques. Furthermore, we will also measure the i…
Reforming a complicated income tax system: The political economy perspective
2006
Abstract In this paper we analyze the political economy of revenue-neutral income tax reforms when a government aims at cutting back deduction possibilities in exchange for lower tax rates (“tax-cut-cum-base-broadening”). We show that the individual decision whether to support or reject a reform proposal depends on how strongly the voter is affected by all available exemptions, even if the cut of only one single exemption is at stake. The voting outcome in the society depends on the joint distribution of the deductible characteristics. Due to implicit logrolling there are cases where only symmetrical tax reforms are possible, whereas for other properties of the joint distribution only asymm…
Evasion of Tax on Interest Income in a Two-Country Model
2001
t We consider a model where agents can invest money at home and abroad. Their total income comprises interest income from these investments and labor income. Tax on interest income can be evaded — at the risk of being detected and fined. We analyze the optimal portfolio and tax evading decisions of agents with different incomes. In a second step, we scrutinize the optimal government policy. Using different instruments government tries to maximize total tax receipts and to prevent flight of capital as far as possible.
Penalties in the Theory of Equilibrium Tax Evasion: Solving King John’s Problem
2010
The authors characterize equilibria of an income reporting game with bounded returns and no commitment where detected tax evaders are charged the maximally feasible amount. Introducing partial commitment to punishment relief eliminates multiplicity of equilibria. The authors identify a unique limit equilibrium where the poorest citizens evade, intermediate citizens are honest, and the richest citizens are indifferent between evading and truth telling. For small tax rates and auditing cost, committing to a discretionary punishment relief scheme increases expected tax revenue.