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This paper investigates the influence of regional tax autonomy, firm size, and business group affiliation on corporate tax burden in a large sample of Spanish firms, including non-listed firms, from 2007 to 2016. Our findings reveal that firms located in tax-autonomous regions exhibit lower effective corporate tax rates (ETR), providing new empirical support for the horizontal tax competition theory. Additionally, we identify a positive relationship between firm size and corporate tax burden, aligning with the political cost theory. Furthermore, we find that group-affiliated firms face a higher ETR than independent firms, and that group affiliation attenuates the differences in the tax burden experienced by large and small firms. [ABSTRACT FROM AUTHOR]

We examine how locked-in CEO equity attributable to large unrealized capital gains tax liabilities influences the cost and restrictiveness of debt contracts. We find that firms enjoy lower loan spreads and are more (less) likely to receive ratings upgrades (downgrades) when their CEO has a large tax burden. Using the capital gains tax rate decrease in the Tax Reform Act of 1997 as an exogenous shock to CEO tax burdens, we find that CEOs with large tax burdens before the tax cut experience a sharp increase in loan spreads afterward. This increase in spreads is larger when the firm has low profitability, high bankruptcy risk, and when loans are unsecured. Further, CEO tax burdens decrease the restrictiveness of nonprice loan terms, increase syndicate size, and decrease issue costs. [ABSTRACT FROM AUTHOR]

Purpose: This research aims to understand the primary challenges encountered by entrepreneurs operating in emerging economies, where entrepreneurship plays a vital role. The study places a particular emphasis on entrepreneurs in Brazil. Design/methodology/approach: The research methodology involved the analysis of data obtained from interviews, using both content analysis and Grey Relational Analysis techniques. Findings: The analysis revealed several prominent difficulties that entrepreneurs face in these domains. These challenges encompassed issues such as grappling with intricate taxation systems and the associated tax burden, navigating government bureaucracy, securing access to essential financing and initial investments, contending with the absence of supportive government programs and addressing the dynamic nature of market conditions. The findings on the most critical barriers reveal potential pathways for entrepreneurs, policymakers and universities to act in developing the entrepreneurial ecosystem in emerging economies. Originality/value: The insights garnered from this research have the potential to inform the formulation of robust public policies aimed at fostering entrepreneurship and innovation in emerging countries. Furthermore, these findings can serve as a valuable resource for planning initiatives designed to train engineers to become successful entrepreneurs. [ABSTRACT FROM AUTHOR]

We study the price effects of a temporary VAT reduction in Germany using a web-scraped dataset of daily prices of more than 60000 supermarket products. For causal identification, we compare the development of German prices to those in Austria. We find that the reduction of VAT rates led to a price decrease of 1.3%, implying that 70% of the tax cut were passed on to consumers. Moreover, the pass-through is higher for vertically integrated products (private label) than for independent brands. This is consistent with menu cost theories and theories predicting that price markups act as a buffer for cost shocks. [ABSTRACT FROM AUTHOR]

In this paper, we study the relationship between corporate culture and tax planning. Using the competing values framework and natural language processing techniques, we document that firms with collaboration-oriented (control-oriented) corporate cultures are associated with lower (higher) effective tax rates. We further find that firms with collaboration-oriented corporate cultures achieve these tax savings by engaging in tax-sheltering activities and that such savings positively affect firm value. While firms with salient control-oriented characteristics have previously been recognized to benefit from small tax burdens, we contribute with new evidence suggesting that intra-organizational reciprocity also promote tax savings that ultimately benefit shareholders. [ABSTRACT FROM AUTHOR]

Background: The production and consumption of sugar-sweetened beverages (SSBs) have been increasing over the past years, globally. However, there is overwhelming evidence linking SSBs to the rising prevalence in obesity and its comorbidities. In South Africa, the prevalence of overweight and obesity is high and is among the highest in Sub-Saharan Africa. In response to rising prevalence in obesity and its comorbidities, on 1 April 2018 the South African government introduced an SSB tax, known as the Health Promotion Levy (HPL). However, the levy has been opposed by the sugar industry, claiming that it leads to jobs losses. Against this backdrop, this study seeks to investigate the association between the HPL and employment in the sugar industry. Methods: We employed single-group interrupted time series analyses using the Quarterly Labour Force Survey data from Statistics South Africa. Results: Our results show that the HPL has not been associated with job losses (or generation) in the sugar-related industries in South Africa. These findings are consistent with the findings on the effects of SSB taxes on employment in other jurisdictions. Conclusions: Considering that the HPL does not impede employment, and the overwhelming evidence on the effectiveness of SSB taxes, together with the relatively low tax burden, it is imperative that the government raises the HPL from the current 8% of the retail price to the WHO-recommended 20% threshold. The government should also consider expanding the HPL to fruit juices. Such strategies are important in encouraging people to reduce the intake of SSBs, while enabling the government to raise additional revenue for the fiscus. [ABSTRACT FROM AUTHOR]

This paper discusses the distributive effects of indirect taxes on produced commodities in a Sraffian conflict inflation framework, in which we make use of a simple ‘Corn Model’ to generalize some results from Okishio ([1958]1977) and apply them to the question of real tax incidence. We show that real tax incidence depends on whether the tax rate is levied on basic or non-basic goods and that in the case of a tax imposed on basic goods, different results in terms of real tax incidence depend on different assumptions about how firms increase prices and workers increase bargained money wages. Within this framework, income distribution, real tax incidence and cost-push inflation are jointly determined by the distributive conflict and the relative bargaining power of workers and firms, expressed objectively in terms of the size and frequency of price and money wage increases. From these results, we argue that a reduction in indirect taxes on basic goods could be a desirable anti-inflation policy, as such reduction, even if accompanied by revenue compensating increases in the taxation of non-basics, would increase both the real wage and the real rate of profits, while permanently lowering the rate of inflation. [ABSTRACT FROM AUTHOR]

This paper investigates the impacts of two taxation programs, the Forestland (FL) program, based on a site value tax, and the Small Tract Forestland (STF) program, based on a combination of a site value tax and a severance tax, on the optimal management of Douglas-fir in Western Oregon amidst timber price uncertainty. The study reveals that the optimal reservation prices are lower under the STF program, making it more advantageous for forest landowners in terms of tax liabilities. Specifically, the STF program leads to significantly lower tax payments ($185.8–$277.4 per acre) and tax burdens (6.0%–5.9%) compared to those of the FL program ($709.2–$1092.5 per acre; 22.9%–23.2%). When factoring in the harvest age, the STF program results in an increased harvest age, whereas the FL program remains fiscally neutral. The FL program exhibits a slightly progressive taxation system, while the SFT program displays a slightly regressive taxation system. Although our findings suggest that the STF program is a better option for landowners, a more detailed analysis regarding the impacts of these taxation programs on the overall welfare of the state's economy is required. [ABSTRACT FROM AUTHOR]

Previous research suggests that the shadow economy can affect the level and the quality of human life. Due to the important role of this economic sector, we aim touncover the linkage between happiness and the size of this economic sector in ASEAN countries during 2002-2017. Data is obtained from different sources such as World Development Indicators, New Economics Foundation, Heritage Foundation, and World Governance Indicators to accomplish this objective. We apply the Bayesian approach to evaluate the impact of happiness on the shadow economy and use a normal distribution for a priori information. Besides the main explanatory variable, we investigate other determinants, including GDP per capita, governance, trade openness, and tax burden. The paper's main finding is that happiness harms the size of informality in ASEAN nations over the period 2002-2017. Likewise, GDP per capita and trade openness adversely affectthe shadow economy. Another factor that can impede the informal economy is governance, though the detrimental effectprobability of this variable is low. In contrast, tax burden is positively related to this economic sector in ASEAN. Based on these findings, we suggest recommendations for the management of informal activities. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Vertical integration involves expanding a firm's business activities across multiple interconnected sectors, serving as a crucial strategy for securing scarce resources and strengthening core competitiveness. This study uses a difference-in-differences approach to examine whether and how tax reform that reduces value-added tax (VAT) rates affects corporate vertical integration. Using a sample comprising 21,356 firm-year observations from Chinese firms, the results reveal that VAT tax reform significantly enhances corporate vertical integration primarily by mitigating internal and external financing constraints. The effects of the tax reform are more pronounced among enterprises that are state-owned, in the manufacturing industry, that have high tax burdens or elevated debt levels, and those exposed to Sino-US trade conflicts. These results highlight that targeted tax strategies can effectively promote industrial development and reinforce supply chain resilience, especially during periods of deglobalization. These findings deepen our understanding of how fiscal policy shapes corporate behaviour and industrial structures. [ABSTRACT FROM AUTHOR]

Land taxation, mainly the Land and Building Tax (LBT), is a critical revenue source for local governments in Indonesia, yet its contribution remains suboptimal due to inefficiencies in assessment and administration. This study focuses on the Lebak Regency to optimize the Sales Value of Taxable Objects (SVTO) assessment, a key determinant of LBT revenue. Using spatial analysis, Land Value Zones (LVZ), and socio-economic data, the research evaluates assessment ratios to identify discrepancies between SVTO and market values. Adjustments to SVTO are proposed based on spatial patterns, such as land use and infrastructure, and the Index of Developing Villages (IDV). Findings reveal significant disparities between assessed and market values, with assessment ratios ranging from 1% to 267%. Simulations indicate potential LBT revenue of IDR 224.7 billion under full compliance, compared to IDR 44.22 billion, the 2024 target. Adjustments based on spatial patterns from land use planning and village development indices enhance equity and accuracy in tax assessments, optimizing local revenues. Despite these improvements, the study's limitations lie in the lack of community validation for the proposed methodology, which is essential to confirm its practicality and acceptance. Future research should address this gap and explore household-level dynamics, including tax affordability and spending patterns, to enhance policy inclusivity and align taxation systems with local socio-economic realities. [ABSTRACT FROM AUTHOR]

This paper focuses on asymmetric tax treaties and investigates from an empirical perspective the impact of OECD member states' double tax relief method and of treaty tax-sparing provisions on investments in developing countries, while considering network effects. Our results suggest that having a treaty between the OECD member state and the developing country, which improves the investor's conditions in terms of tax burden, by changing the unilateral tax relief method, increases FDI to the developing country. The positive effect prevails when investigated within investments made through the direct route from residence to source. Results suggest that OECD member states offer tax-sparing provisions mostly to less-developed economies, which already receive very low FDI. Finally, we extend the investigation to an analysis of the impact of residence countries' tax relief methods on source countries' domestic tax policy. Our results suggest that developing countries set higher CIT rates when the OECD member state relieves double taxation through the exemption method, as compared to when it offers a foreign tax credit. [ABSTRACT FROM AUTHOR]

We present an economic rationale to explain why countries resort to foreign influence to export their ideology to other nations. Our model incorporates two fundamental elements: redistribution of tax burden between capital owners and workers, and international capital mobility. The model highlights the role of ideology in shaping both the taxes implemented by governments and the cross-border externalities of these policy choices. Pro-capital governments want to maximize returns to capital. Hence, they set lower capital taxes than pro-labor governments and benefit from other countries setting low capital taxes. In contrast, pro-labor governments' efforts to shift the tax burden onto domestic capital owners are facilitated by higher capital taxes abroad. These cross-border externalities create strong incentives to engage in foreign influence activities. We solve for a political equilibrium in which incumbent governments have the option to meddle in elections in other countries. In equilibrium, pro-capital parties exert influence aimed at promoting pro-capital parties and policies worldwide, while pro-labor governments carry out foreign influence activities aimed at boosting pro-labor parties and policies in other countries. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Over 140 countries agreed on a fundamental corporate tax reform in 2021 to be implemented in 2023 and beyond. To measure its potential effects, we study asset price changes within minutes of the reform announcements. We construct proxies for the reform's costs regarding U.S. companies' tax burdens and countries' public finances. Likely exposed companies exhibit significant negative stock returns. Our lower-bound estimates indicate total shareholder value losses of $112.6 billion one day after the reform announcements. Further, likely exposed countries experience increases in sovereign debt credit risk. Our findings inform the cost-benefit analysis of a historical international tax reform. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Tax planning is crucial for the operational strategy of companies, allowing them to minimize the tax burden within legal frameworks. However, third-category companies in Peru, especially medium and small ones, face significant challenges due to a limited understanding of tax regulations. This qualitative study, with a phenomenological approach, explored the effectiveness of tax planning strategies in these companies. Semi-structured interviews were conducted with three tax specialists, selected for their experience and knowledge. The interviews addressed four key dimensions: absence of tax planning, characteristics of planning, modification of tax regulations, and business learning. The analysis of the responses, carried out using content and hermeneutic analysis methods with Python, revealed that insufficient training and a deficient tax culture are the main causes of the lack of tax planning, increasing susceptibility to tax sanctions and fines. Additionally, optimizing expenses and implementing control mechanisms proved fundamental for effective planning. Strategic tax management was highlighted as essential for maintaining financial stability and regulatory compliance, especially amid regulatory changes. Continuous training and the modernization of tax processes emerged as critical factors to improve operational efficiency and reduce errors. The integration of the results with state regulations showed the positive influence of the Income Tax Law and Tax Education on tax planning and business management. In conclusion, the study underscores the need for effective tax planning supported by solid tax training and a stable regulatory framework, recommending the strengthening of training and advisory programs, as well as the digitization and simplification of tax processes to improve tax compliance and business competitiveness in the long term. [ABSTRACT FROM AUTHOR]

In this paper, we address the confidence of the agricultural producers in their prosperity as a driver of development. The agricultural sector development is highly dependent on short term investment decisions for sowing area, breeding, among others, which in turn is mediated by confidence. Agricultural producer confidence is continually measured in Argentina by CREA, a non-profit organisation composed of groups of producers spread across the country striving for innovation and best practices diffusion. We leverage this measurement methodology to propose a structural equation model to explain confidence by an exhaustive collection of factors affecting the business at company, sector or economy level, providing critical insight about the range of policies that would enable agriculture to grow. High regulation and tax burdens prevailing in the market during the past decades have been identified as relevant hindrance factors to confidence. On the enablers side are the respect for property rights and the organisation effectiveness actively fostered by CREA. [ABSTRACT FROM AUTHOR]

This paper argues that the state's capacity to tax corporations in order to fund itself is reaching crisis proportions. Following decades of trade liberalization, deregulation, and globalization, large multinational companies have been able to take advantage of tax competition between states in order to avoid taxation and offset their obligations. This crisis, arguably, has been facilitated by state actors and exacerbated by non-state actors: we explore the ways in which multi-national corporations (MNCs) manipulate their capital, assets, and supply chains to minimize their tax burdens; and we further consider the ways in which media narratives construct this issue and whether they challenge the practice or intensify it. Discourse surrounding taxation plays a huge part in what is considered acceptable. While the old adage that "death and taxes" cannot be avoided, it has become clear that large companies, helped by a tax avoidance industry do indeed manage to do just that. Discourse analysis reveals the ways in which ideology can be used to manage consensus around this potentially controversial subject and this paper seeks to explicate that by examining the frames, presuppositions and discursive formations present within the discourse structure. The argument is developed through a comparative case study research design demonstrating the different policy-based, economic and historical contexts of the two jurisdictions which offer some insight and explanation of the distinctive ideological discursive formations that are present within the discourses. [ABSTRACT FROM AUTHOR]

The paper investigates the bond betwixt the sub-indicators that constitute the Economic Freedom Index and the shadow economy in Romania, during the period 2017-2023. By employing the Principal Component Analysis (PCA) method, the research highlights the intricate interplaybetween fiscal policies, integrity of institutions and informal economic activities. The period under scrutinywas chosen as a result of the updates of the Economic Freedom Index methodology in 2017. The set of sub-indicators was expanded in that year, incorporating independent dimensions of Judicial Effectiveness and Fiscal Health. The results show a robust connection betwixt great fiscal strain and the expansion of the shadow economy, with Tax Burden and Shadow Economy (% GDP) having significant positive loadings on the first principal component. In opposition, subindicators such as monetary and trade freedom showed negative correlations, suggesting that high taxation limits economic openness. The year 2020 is identified as an unstable equilibrium point. The pandemic crisis then accentuated economic pressures and disrupted the relationships between the indicators. The temporal analysis reveals a distinct shift from a more indulgent economic environment in 2017-2018 to a more regulated and more fiscally governed state in 2022-2023. The conclusions emphasize the importance of public policies that balance taxation and economic freedoms, reduce informality, and increase institutional transparency. The study contributes to the understanding of the shadow economy and economic freedom in the context of emerging economies, providing a solid basis for the formulation of effective public policies. [ABSTRACT FROM AUTHOR]

Based on the analysis of current legislation, available scientific, journalistic and methodological sources, the article reveals the specifics of using tax benefits with a view to optimizing taxation. It is established that among the legal methods of tax optimization, the key ones are as follows: selection of the most optimal taxation system for doing business, which should be carefully analyzed taking into account the specifics of the business entity's activities, its scale and structure; building a business model with integration of individual entrepreneurs under the simplified taxation system into the organizational process of a business entity - a legal entity; use of tax benefits provided for in the legislation by a business entity. The benefits may include both full exemption from certain taxes and reduction of tax rates, which contributes to a significant reduction in the tax burden of the business entity. Among the most effective schemes of tax optimization through privileges are the following: 1. Employment of persons with disabilities in order to use benefits. The scheme involves reducing the tax burden and obtaining financial benefits from the employment of persons with disabilities. It can be implemented in two ways, simple and complex. At the same time, the essence of both options is that the taxpayer receives a number of benefits provided by tax and labor legislation aimed at stimulating the employment of people with disabilities and at the same time reducing the tax burden on employers; 2. Use of the simplified taxation system. There are two ways to take advantage of the simplified taxation system to optimize taxation: simple and complex. In the simple version, an existing business entity, trying to optimize taxation, decides to switch to the simplified taxation system. In essence, the transition of a business entity to the simplified taxation system is itself a tax optimization, as it gives micro and small businesses the opportunity to use more lenient tax conditions compared to the general taxation system. As for the complicated option, it is much more attractive in terms of optimization results, but at the same time it is associated, in some cases, with certain risks. The essence of the scheme is to take advantage of the system by "splitting the business" into several individual entrepreneurs - single tax payers of the second group. However, the central control over the business is retained in the hands of a single managing entity - a legal entity, most often a legal entity - a single tax payer of the third g roup. [ABSTRACT FROM AUTHOR]

The indicators of the effective tax burden on corporations present effective tax rates, taking into account the impact of all the design features mentioned in the legislation. The paper addresses the issue of effective taxation through the method of calculating EMTR and EATR with a focus on intangible assets in 2004, 2015 and 2023. The analysis determined the tax depreciated shield, which tracked the amount of tax savings on capital investment and the economic rent of the project with taxation, focusing on the magnitude of the financial benefit of the project with an aspect on taxation. The analysis showed that a 3% increase in the statutory rate over the study period, increased the effective average corporate rate on intangible assets by 13.56%. The annual tax saving achieved for 2023 on intangible assets was at 17.17% with a payback period of five years. [ABSTRACT FROM AUTHOR]

With an emphasis on resolving alleged injustices in the individual taxation system, particularly for married couples, this study investigates the possibility of tax reform in Cyprus. Since each person in Cyprus is currently subject to separate taxes, married couples may be unfairly burdened by having larger overall tax obligations. The principal aim of the study is to investigate the viability and consequences of instituting a married couples allowance for individuals who are lawfully married. Additionally, the study intends to evaluate public perceptions of the benefits of such an allowance and the fairness of the current system. To achieve these objectives, a mixed-methods approach was employed, combining qualitative interviews with tax experts and quantitative surveys conducted with a representative sample of Cypriot citizens. Data on government revenue and potential costs associated with the reform were analyzed to evaluate the financial impact of the proposed change. Results indicate strong public support for a married couple's allowance, with many respondents perceiving it as a fairer approach to taxation. However, the financial implications for the government would require careful consideration, particularly regarding potential revenue shortfalls. The study concludes by discussing policy recommendations and the balance between tax equity and fiscal responsibility. [ABSTRACT FROM AUTHOR]

US multinational firms typically invert either through a pure form or by merging with foreign entities. Our research documents that pure inversions increase inverting firms' cost of equity, while merger inversions decrease it. These results remain robust across different measures of the cost of equity. We also demonstrate that the 2004 tax reform is ineffective in reducing US multinational firms' tendency to invert. Instead, it prompts firms to shift from pure inversions to merger inversions, which are less value‐enhancing due to their lower tax benefits. It is unlikely that the legislators had foreseen these outcomes. [ABSTRACT FROM AUTHOR]

Owing to pressing fiscal challenges, local fiscal sustainability has garnered increasing attention among scholars worldwide. This paper critically examines key conceptual and methodological challenges present in the existing literature. Our aim is to offer critiques and recommendations that could guide future research endeavours on this important topic. [ABSTRACT FROM AUTHOR]

Salient features of major economies around the world, specifically in high‐income countries, are graying population and declining fertility. Incorporating the quantity–quality tradeoff of children into an overlapping generations model, this paper presents an analysis of the effects of formal old‐age support on fertility and economic growth. Because of health risks during old age, which might be too severe to be covered privately, some economically developed countries have public old‐age support programs. Formal old‐age support provision is regarded as involving management costs, for instance, caused by X‐inefficiency in addition to labor costs. Findings demonstrate that when management costs are sufficiently small, formal old‐age support raises the balanced economic growth rate, involving a smaller tax burden and freeing individual time from family old‐age support, but it lowers fertility. Effects on the lifetime utility of individuals are indeterminate. By contrast, when management costs are high, the increased formal old‐age support deters economic growth through a negative income effect. However, it also lowers the fertility rate. In this case, lifetime utility becomes lower. Our major finding is that, when the cost inefficiency of public support is not high, formal old‐age support might increase long‐term lifetime welfare of individuals, but it lowers fertility. [ABSTRACT FROM AUTHOR]

An important change to the indirect tax system was made in 2017 when India introduced the Goods and Services Tax (GST). This study examines the advantages and disadvantages of implementing the GST as it relates to retailers. The study looks at changes in tax burden, compliance practices, and operational efficiency through a survey of retailers and secondary data analysis. The results show that the GST has simplified the tax code, lessened cascading effects, and made interstate transactions simpler. But there are drawbacks as well, like the difficulty of initial compliance, the expense of adopting new technology, and possible disruptions for smaller retailers. The study comes to the conclusion that the effects of GST on retailers are complex, presenting both immediate challenges and long-term advantages. [ABSTRACT FROM AUTHOR]

Using a sample of 3,770 commercial banks in 167 countries over the years 2002–2021, we examine the effects of corporate taxation on loan prices. We find that banks perceive increased corporate taxation as a significant risk to borrowers and increase the cost of bank loans in response to increased corporate taxation. This is more pronounced for smaller banks, banks in low- and middle-income countries, and unlisted banks. Our findings indicate that policymakers should be aware of the adverse effects of increased corporate taxation on corporate external financing costs. [ABSTRACT FROM AUTHOR]

Copyright of Revista Foco (Interdisciplinary Studies Journal) is the property of Revista Foco and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper provides a non‐technical exposition of what homestead exemptions accomplish. When homestead exemptions are not capitalized, they may result in increased tax rates. It is possible that the tax rate increases so much that eliminating exemptions could even lower the tax payment of a taxpayer who previously claimed an exemption. When we allow for full capitalization of both exemptions and tax rate changes, those who get the exemptions have no gain because the appreciation of their parcels increases their tax bill enough so that their tax payment is the same as it would have been without the exemption. Key Takeaways: Homestead exemptions intended to lower the property tax burden of homeowners may be offset if local governments compensate by raising tax rates.Homestead exemptions may be "capitalized" (i.e., incorporated) into home values if they raise the amount potential buyers are willing to bid for a home.When homestead exemptions are not capitalized, tax rate increases to offset tax base lost to local governments can be substantial. It is possible that the tax rate increases so much that eliminating exemptions could even lower the tax payment of a taxpayer who previously claimed an exemption.When we allow for full capitalization of both exemptions and tax rate changes, those who get the exemptions have no gain because the appreciation of their parcels increases their tax bill enough so that their tax payment is the same as it would have been without the exemption. [ABSTRACT FROM AUTHOR]

Scholars and policymakers have long been interested in measuring the relative property tax burden across cities. Most existing estimates rely on statutory rates and other official metrics to compute the prevailing tax rate in a city. Yet, a crucial feature of the property tax is that it is levied on estimated values rather than transaction prices. Without accounting for the quality of the estimated values it is impossible to know the effective tax rate. In this paper, I compute effective tax rates from micro data on property sales, aligning the tax due in the sale year with the sale price. I compare the observed effective tax rates with the best available estimates based on official sources. Relative to prior estimates, I find that effective tax rates are (a) generally lower, due to lags in estimated values; (b) widely varying even within the same city, due to errors in estimated values; and (c) usually regressive, due to biases in estimated values. I discuss the implications of these findings for taxpayers and policymakers. Key Takeaways: Effective tax rates are lower than nominal tax rates in most cities. The most likely reasons are that market values for tax purposes are estimated with a lag and that caps on assessment increases keep taxable values below market values.There is tremendous variation in effective property tax rates within the same jurisdiction, such that often some owners pay substantially more or substantially less than the prevailing rate. This variation means that comparisons across jurisdictions in terms of their average tax rates should be taken with a grain of salt.Within‐jurisdiction variation in rates is not entirely random. In most cities, lower‐priced homes pay higher effective property tax rates than higher‐priced homes. [ABSTRACT FROM AUTHOR]

Copyright of Cadernos de Dereito Actual is the property of Asociacion Xuristas en Accion and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The attitudes of the general public with regard to social welfare are of crucial importance in determining the efficacy and stability of a nation's welfare system. The manner in which taxation is employed as a means of funding mechanism for welfare policies is of great consequence. Nevertheless, existing research on the subject of welfare attitudes has largely neglected the tax perspective, underscoring the need for investigations that bridge this gap and provide a more comprehensive understanding of the intertwined dynamics between taxation and public perception of social benefits. This study investigates the influence of tax burdens on attitudes towards welfare using an ordered probit model applied to data from the 2019 International Social Survey Program (ISSP 2019 Social Inequality V), encompassing 11 welfare states. Our key findings are as follows: (1) Empirical analysis reveals that a moderate tax burden correlates with a reduction in public expectations regarding governmental responsibility for welfare provision. (2) Heterogeneity analysis elucidates a negative association between tax burdens and welfare attitudes across diverse welfare regimes. (3) The mediating effect test suggests that perceptions of social fairness partially mediate the relationship between tax burdens and welfare attitudes. (4) The moderating effect test indicates that government efficacy negatively moderates the impact of tax burden on welfare attitudes. This study offers insightful perspectives for policymakers aiming to design and implement tax systems that align effectively with societal structures. [ABSTRACT FROM AUTHOR]

Congressional hearings and public reports have drawn attention to problems afflicting Medicare Advantage (MA), the privatized version of Medicare. Private plans became a staple of Medicare through the passage of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). Congress passed this law during a furor of privatization, when think tanks and powerful financial interests emphasized the power of corporations' profit incentive to improve the efficiency and quality of social enterprise. Yet the surging criticism of MA suggests a misalignment between the financial interest of some MA plans and the well-being of their patient populations. The criticisms range from deceptive marketing, ghost networks, and patient cherry-picking to unethical prior authorization denials and defrauding the government. In total, MA plans cost the federal government 22% more per patient than if these patients in question were enrolled in traditional Medicare. Moreover, it is not clear that this additional funding is producing proportional benefits. These developments raise questions about the presence of a profit incentive in Medicare, and perhaps health care more broadly. [ABSTRACT FROM AUTHOR]

The aim of this study is to form a new concept of tax burden calculation—optimal tax trajectory, which meets the needs of economic entities in view of the optimisation of tax payments and state authorities in terms of budget replenishment and subsequent efficient spending of state resources. The presented concept is developed on the basis of mathematical modelling of related economic processes. The model is based on the differential equation. An attempt is made to analyse the impact of building an optimal tax trajectory on the efficiency of the organisation's activity. It shows that it is possible to increase the tax burden on economic entities in order to replenish the revenue part of the budget, which does not affect their financial situation. The proposed approach expands the instrumental apparatus for calculating tax payments from the position of taxpayers and fiscal authorities. The construction of the optimal tax trajectory facilitates the adoption of point decisions concerning the increase or decrease of the tax burden of an economic entity in mutual account with the factors of the macroeconomic conjuncture. This approach allows for managing the revenue part of the budget and redistributing it later to solve social problems or overcome business downturns. [ABSTRACT FROM AUTHOR]

The institution of a simplified taxation system provided for in the tax system of Ukraine is characterized by permanent variability, which is always aimed at achieving an optimal balance between national interests (reduction of the shadow economy sector; attracting funds to budgets; reducing the level of tax administration costs; preventing the use of simplified taxation system in minimization schemes; etc.) and individual interests of taxpayers (reducing the tax burden; promoting the competitiveness of taxpayers; improving the convenience of paying taxes; minimizing the amount of tax reporting; etc.). Since the introduction of the simplified taxation system, it has been significantly transformed and, compared to 1998, is qualitatively better. Despite this, discussions in political and scientific circles about the need to take steps to further modify this special tax regime, up to its complete abolition, do not stop. The article considers the National Revenue Strategy until 2030 approved by the supreme executive body of Ukraine, which defines a medium-term roadmap for reforming tax policy and tax administration in Ukraine. The article outlines the main principles that should be followed in modernizing the national simplified taxation system and considers the goals that the state seeks to achieve through the practical implementation of the approved strategy. The author describes in detail the key measures envisaged by this national strategy for reforming the simplified taxation system, including in the context of Europeanization of the tax system of Ukraine, and points out the uncertainty of certain elements of these measures, which leads to complications in the tax planning process for entities. The author concludes that the approved national strategy, which is aimed at approximating the national tax policy and tax legislation of Ukraine to the provisions of the European Union legislation, provides for depriving legal entities (including agricultural producers) of the right to tax their income with a single tax, and defines measures to tighten the requirements for single tax payers (individual entrepreneurs) and increase their tax burden. [ABSTRACT FROM AUTHOR]

It is important of tax burden stickiness to reveal the special phenomena that the operating conditions of enterprises are not synchronised with the changes of tax burden, but research on overall tax burden stickiness in emerging markets is relatively scarce. This study aims to investigate the suppressing effect of R&D investment on overall tax avoidance and overall tax burden stickiness of Chinese listed companies. We obtain the following conclusions: (1) Overall tax burden stickiness exists among listed Chinese companies. (2) Chinese listed companies have generally significant overall tax avoidance. (3) Overall tax avoidance has a significant positive direct effect, alleviating overall tax burden stickiness, but R&D investment partially offsets the positive influence of overall tax avoidance on overall tax burden stickiness, and the suppressing effect reaches 0.007. Our results illustrate that the implementation of tax planning for R&D projects can reduce R&D investment, so overall tax avoidance will deteriorate overall tax burden stickiness through R&D investment. Therefore, to improve resource utilisation efficiency and tax burden sensitivity to changes in revenue, tax planning should strike a balance between an effective reduction of R&D investment and alleviating tax burden stickiness as operating conditions fluctuate to achieve maximum tax benefits. [ABSTRACT FROM AUTHOR]

Based on the interprovincial differences in China's environmental protection tax, it is of great practical significance for economic transformation and upgrading, as well as ecological civilization construction, to evaluate whether China's environmental protection fee-to-tax reform (CEPFR) effectively enhances corporate green technology innovation by means of tax burden classification. This study constructed a quasi-natural experiment based on typical facts of the formal implementation of the Environmental Protection Tax Law of the People's Republic of China in 2018. It utilized panel data from Chinese A-share listed companies between 2013 and 2022 and employed the difference-in-differences method to examine the impact of CEPFR on corporate green technology innovation and to evaluate the differential impact of varying degrees of tax burden increases on such innovation. The research results showed that: 1 CEPFR significantly promoted corporate green technology innovation, and this conclusion remained robust after a series of robustness tests. 2 The tax burden classification test found that the green innovation incentive of CEPFR primarily benefited from the tax burden increases at the middle and low levels rather than at the high level. 3 Heterogeneity analyses demonstrated that the foundation established by previous innovation and the pressure from media attention were more conducive to expanding the driving effects of tax burden increases at the middle and low levels on corporate green technology innovation. In addition, the green innovation incentives of tax burden increases primarily targeted substantive innovations such as invention patents, which could promote both the quantity and quality of corporate green technology innovation. Furthermore, tax burden increases could encourage enterprises to actively engage in green innovation cooperation. 4 A high-level environmental tax burden could improve the production efficiency of enterprises, but it could find it difficult to promote corporate green transformation. In contrast, the tax burden increases at the middle and low levels could optimize the green production efficiency of enterprises. From the perspective of tax burden classification, this study provides microevidence on the implementation effects of CEPFR and offers theoretical support and empirical references for local government to formulate appropriate tax regulatory intensity. [ABSTRACT FROM AUTHOR]

There is no doubt that the outbreak of the Coronavirus disease (COVID-19) strikes the world with unparalleled disruption in economic and business activities. The impacts of the COVID-19 pandemic have dealt a serious blow to businesses, households, individuals, and revenue generation by governments across the globe with Nigeria being no exception. As a result, Nigeria introduced certain tax measures through the Emergency Economic Stimulus Bill 2020 to mitigate the impact of the pandemic on taxpayers but these measures are inadequate and in some ways impracticable. The measure includes a temporary relief to companies and individuals to alleviate the adverse financial consequences of a slowdown in economic activities as a result of the COVID-19 pandemic. The article argues that it is clear that the COVID-19 pandemic has drastically reduced business activities and the Bill does nothing to reduce or remove the existing tax burden but simply postpones the same to a later date. This negates section 14(2)(b) of the Nigerian Constitution 1999 as amended which provides that the security and welfare of the people shall be the primary purpose of government. This raises a critical question as to whether revenue generation by the Nigerian government is more important than preventing hardships and reducing the burden of Nigerian taxpayers whose welfare the government has sworn to protect through the Constitution. The implication is that the Nigerian government needs to revise its tax regime encompassing incentives such as tax credits, write-offs, and tax holidays in a bid to provide adequate relief to the taxpayers pending the eradication of the pandemic and a return to economic stability. [ABSTRACT FROM AUTHOR]

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Sprawling land development patterns have exacerbated ecological degradation, social fragmentation, and public health problems. Perverse incentives arise from the ability to privatize collectively created value in land rents and socialize ecological costs. Land value taxation (LVT) has been shown to encourage urban infill development by reducing or eliminating rent-seeking behavior in land markets. However, despite its purported benefits, this tax reform is value monistic in its definition of optimal land use and, therefore, does little to address the lack of non-market information to inform land use decisions. We propose an ecological-impact-weighted land value taxation policy (ELVT) which incorporates the ecological footprint of land use into one's land value tax burden. We test both proposed policies (LVT and ELVT) relative to a "status quo" (SQ) property tax scheme, utilizing a conceptual spatially explicit agent-based model of land use behaviors and housing development. Our findings suggest that both tax interventions can increase the capital intensity and decrease the land intensity of housing development. Furthermore, both tax interventions can lead to a net profit loss for speculators and a decrease in the average housing unit price. The ELVT scheme is shown to significantly increase urban nature provisions and dampen the loss of ecological value across a region. [ABSTRACT FROM AUTHOR]

We evaluate distributional and efficiency consequences of the bulk power clean electricity tax credits authorized by the 2022 Inflation Reduction Act. To do so, we link detailed electricity capacity expansion, computable general equilibrium, microsimulation, and air pollution models to estimate economic welfare and health incidence across demographic groups. We evaluate trade-offs between policy efficiency and income progressivity by comparing the tax credits to cap-and-trade policies. The tax credits encourage increased clean electricity investment, resulting in a reallocation of capital from elsewhere in the economy, higher prices for capital and other goods, lower power prices, and lower emissions. The tax credits yield progressive outcomes for economic welfare at the expense of efficiency while all modeled policies demonstrate progressivity in health impacts. The health benefits, absent climate benefits, exceed total policy costs and provide greater benefits for low-income and historically marginalized households given coincidence of household locations and emissions exposure intensity. [ABSTRACT FROM AUTHOR]

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This paper provides evidence that consumers who disagree with a soda tax decrease their consumption more strongly to avoid the tax burden. Public policies that restrict or intervene in consumer choices are often controversial. We investigate whether consumers' disagreement with a policy affects how they respond to that policy using a natural experiment in Washington state, where a consumption tax on soda was repealed by popular ballot. We use data on precinct-level voting and shoppers' home locations to create a novel measure of grocery store–level tax opposition. We then combine this measure with price and quantity data from grocery stores statewide. Leveraging a difference-in-differences research design in which we instrument for tax opposition, we show that, in response to the short-lived Washington state soda tax, stores frequented by tax opponents experience a 53% greater reduction in quantity sold of taxed beverages compared with stores frequented by tax supporters even though the tax pass-through is generally uniform across all stores. Our mechanism analysis is consistent with an oppositional behavioral response, in which upset consumers decrease consumption more strongly to avoid the tax burden. If this behavioral response is not taken into account, the optimal tax rate may be set too high, resulting in lower tax revenue. History: Catherine Tucker served as the senior editor. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mksc.2022.0230. [ABSTRACT FROM AUTHOR]

In this study, we examine the effects of bribery on the digitization of small and medium enterprises (SMEs) within Latin America. We apply neo‐institutional theory as the overarching theoretical framework to establish that bribery negatively influences digitization. We propose that firm characteristics (i.e., managerial experience and firm size) affect the firm‐level relationship between bribery and digitization. We also examine how the perceived tax burden mediates the effect of bribery on digitization. Our study is both theoretically and practically relevant. Theoretically, we are among the first to explicate the direct relationship between bribery and digitization. This novel perspective extends the information systems literature to explain digitization challenges in Latin America. For managers and policymakers, we present a path towards essential digitization for Latin American SMEs. Our empirical analysis uses secondary data from a World Bank survey of 1549 Latin American SMEs conducted over three years in six countries. Our findings show that bribery negatively influences digitization while SME characteristics positively moderate this relationship. In addition, we show that the perceived tax burden mediates the effects of bribery on digitization. [ABSTRACT FROM AUTHOR]

This article explains the Swiss federal fiscal equalisation scheme. The objectives of financial equalisation have largely been achieved and the system is functioning well. However, the increasing differences between the cantons – whether in terms of financial performance or tax burdens – are cause for concern. [ABSTRACT FROM AUTHOR]