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on Accounting and Auditing |
| By: | Erlend E. Bø, Peter J. Lambert, and Thor O. Thoresen (Statistics Norway) |
| Abstract: | Tax systems with separate taxation of wage and capital income, also called dual income tax systems, have gained relevance through the Mirrlees Review. Obviously, such tax systems are exposed to horizontal equity (HE) failures, or horizontal inequity (HI). HE and HI have a firm grip on assessment of fair tax policies, both from an academic point of view and in general public debate. The dual income tax system of Norway was modified by the tax reform of 2006 precisely because the previous schedule failed to deliver equal tax treatment of equals. This paper discusses the meaning and measurement of HI effects of dual income tax systems, and evaluates the development of HI for Norway over the time period 2000–2008 using micro data. A copula-based identification strategy efficiently establishes a framework for evaluations of HI over time. The dual income tax system and the early announcement of its impending revision during the period under examination created measurement problems which we had to account for by defining a new income concept for the empirical strategy. As expected, we find less HI in Norway after the reform of 2006. |
| Keywords: | Dual income tax; Horizontal inequity; Reranking; Copula estimation |
| JEL: | D31 D63 H31 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:647&r=acc |
| By: | Thor O. Thoresen Erlend E. Bø, Erik Fjærli, and Elin Halvorsen (Statistics Norway) |
| Abstract: | An evaluation strategy is presented for answering the question is the tax schedule more redistributive after a reform than prior to a reform? The proposed procedure builds upon addressing measures of tax redistribution, utilizing micro data from periods before and after the reform. Tax redistributional effects are measured in terms of a “common base” approach, which means that a benchmark is established to identify how the “redistributional efforts” of policy-makers develop over time. When applying this method for evaluation of the 2006 Norwegian tax reform, the results suggest that the modification of the dual income tax system of the 2006 reform has improved the redistributional effect of the schedule. This conclusion is qualified by addressing measurement challenges brought up by the |
| Keywords: | Redistributional effects; Income tax; Measurement problems; Common base |
| JEL: | D31 D63 H24 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:648&r=acc |
| By: | Guner, Nezih (Universitat Autònoma de Barcelona); Kaygusuz, Remzi (Sabanci University); Ventura, Gustavo (University of Iowa) |
| Abstract: | We use micro data from the U.S. Internal Revenue Service to document how households' tax liabilities vary with income, marital status and the number of dependents. We report facts on the distributions of average and marginal taxes, properties of the joint distributions of taxes paid and income, and discuss how taxes are affected by marital status and the number of children. The data reveals a large dispersion in tax rates and taxes paid. Ranking households according to the average tax rates they face, those at top 1% face taxes in excess of 27.5%, while the median tax rate is about 8%. About 14.5% of married and 31.8% of unmarried households do not pay any taxes. Given the progressivity in the system, tax liabilities are more unequally distributed than income. The top 5% (1%) of households account for 54% (34.8%) of total tax liabilities, while top 5% (1%) of households have 34.8% (20.3%) of total income. We also provide parametric estimates of tax functions for use in applied work in macroeconomics and public finance. |
| Keywords: | taxation, tax progressivity, households |
| JEL: | E62 H31 J12 J22 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5549&r=acc |
| By: | Hansson, Åsa (Department of Economics, Lund University); Olofsdotter, Karin (Department of Economics, Lund University) |
| Abstract: | This paper uses panel data on bilateral FDI flows in the European Union to empirically analyze the impact of labor and corporate taxations on FDI decisions. While the effect of corporate taxes on FDI is well documented, the impact of labor taxes on FDI has been neglected. This is surprising since labor taxation may influence FDI as well. The reason for this is that taxation of labor affects the production cost and the ability to attract and retain productive labor and ultimately the investment return. By employing a Heckman two-step estimation model, which controls for possible sample selection bias due to many zero bilateral observations, it is found that labor taxes do influence FDI decisions. The effect is significant both statistically and economically, although the magnitude is smaller than for corporate tax. |
| Keywords: | labor taxation; foreign direct investment |
| JEL: | F12 F15 F21 H71 H73 |
| Date: | 2011–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2011_011&r=acc |
| By: | Ignacio Vélez; Ricardo Dávila |
| Abstract: | This is a teaching material for a module of Financial analysis at Universidad Tecnológica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times using the feedback from students and other users. This material is an unpublished one. This chapter one includes the Table of Content of the future book on Financial Analysis and Forecasting. This chapter is a broad presentation of accounting concepts in particular of financial statements including the Income Statement, the Balance Sheet and the Cash Budget (the listing of all the inflows and outflows the firm has). We adopted a graphical approach to explain the relationship between the financial statements. |
| Date: | 2011–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:col:000162:008050&r=acc |