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on Public Economics |
| By: | International Monetary Fund |
| Abstract: | Lebanon’s tax revenue more than halved between 2019 and 2021, in the face of the deepest economic crisis since the end of the civil war. This report identifies tax policy reform options to stop the drain on Lebanon’s tax revenue in the immediate and near-terms and to move toward a more efficient, effective, and inclusive tax system in the medium-term. |
| Keywords: | Tax Reform Crisis and Taxation VAT Efficiency Inequality |
| Date: | 2023–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/008&r=pbe |
| By: | Robert S. Chirinko; Daniel J. Wilson |
| Abstract: | This paper reviews selected fiscal policy initiatives undertaken by US states to encourage job creation and innovation. We begin with a discussion of some general considerations about the design of tax policies summarized in a tax policy design table. Four policies are reviewed: job creation tax credits, research and development tax credits, a set of tax policies targeted to the biotechnology industry, and a broad set of tax policies that attract star scientists. The experiences at the state level are used to evaluate the effectiveness of these employment and knowledge-capital tax incentives in creating jobs and spurring innovation. The paper concludes with four other considerations need to be taken into account in selecting policies. |
| Keywords: | targeted state fiscal policies, employment tax incentives, job creation, knowledge-capital tax incentives, innovation |
| JEL: | H71 H25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10158&r=pbe |
| By: | Ross Hickey (University of British Columbia Okanagan); Brad Minaker (University of Guelph); A. Abigail Payne (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Joanne Roberts (Yale-NUS College); Justin Smith (Wilfrid Laurier University) |
| Abstract: | Using a large administrative dataset from Canada we estimate that the tax price elasticity of charitable donations is -1.9. When we allow for heterogeneity of this parameter across the income distribution, we observe a large elasticity at the bottom of the distribution between -3 and -4, and an elasticity closer to -1 at the top. We find evidence that the response to tax price occurs on both the intensive margin of how much to give, and the extensive margin of whether to give or not. |
| Keywords: | donations, charity, tax price elasticity |
| JEL: | H31 H24 H40 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2023n02&r=pbe |
| By: | Konstantīns Beņkovskis (Latvijas Banka); Oļegs Matvejevs (Latvijas Banka) |
| Abstract: | This paper describes the new version of Latvian CGE model, which is now an integral part of the joint CGE-EUROMOD modelling system. Special attention is devoted to the labour market and consumption blocks of CGE that are substantially improved compared with the previous version. We briefly describe the motivation to link Latvian CGE with Latvian EUROMOD and provide major technical details. We also provide an example of the policy simulation by the joint CGE-EUROMOD system, demonstrating how the introduction of the progressive personal income tax rate affected the Latvian economy at macro, industry and micro level. |
| Keywords: | CGE model, Latvia, labour market, consumption, EUROMOD |
| JEL: | D58 C68 H2 H6 D9 |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:wpaper:202302&r=pbe |
| By: | Mukherjee, Sacchidananda (National Institute of Public Finance and Policy) |
| Abstract: | Assessing the revenue implications of GST on Indian state finances cannot be contained to compare the revenue stream which is subsumed into GST with State GST collection alone. Since GST subsumes many taxes from state tax bases, comparing the revenue performance of taxes which are outside the GST framework would be equally important. Moreover, in federal system revenue implication of shortfall in tax collection of the federal government is also likely to spill-over to sub-national finance in terms of lower tax devolution. Sustaining revenue streams of state governments is important for sustainable Public Finance Management (PFM) and therefore a comprehensive assessment of state finances before and after GST would be important. This paper attempts to fill the gap in exiting literature by assessing the revenue of 18 major states during pre- and post-GST periods. |
| Keywords: | Revenue assessment ; Goods and Services Tax (GST) ; State Finances ; Revenue protection ; GST Compensation ; India |
| JEL: | H20 E62 H26 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:23/388&r=pbe |
| By: | Robert S. Chirinko; Daniel J. Wilson |
| Abstract: | This paper reviews selected fiscal policy initiatives undertaken by US states to encourage job creation and innovation. We begin with a discussion of some general considerations about the design of tax policies summarized in a tax policy design table. Four policies are reviewed: job creation tax credits, research and development tax credits, a set of tax policies targeted to the biotechnology industry, and a broad set of tax policies that attract star scientists. The experiences at the state level are used to evaluate the effectiveness of these employment and knowledge-capital tax incentives in creating jobs and spurring innovation. The paper concludes with four other considerations need to be taken into account in selecting policies. |
| Keywords: | fiscal policies; job creation; tax policy |
| Date: | 2023–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:95485&r=pbe |
| By: | Hicks, Jeffrey; Simard-Duplain, Gaëlle; Green, David A.; Warburton, William |
| Abstract: | How does welfare affect the prosperity of mothers and their children? We study this question using a Canadian welfare reform and by linking administrative welfare records to tax returns, nearly all medical spending, and children's educational attainment. Eighty percent of mothers in the complier group found employment within a year, and for many, total income rose despite reduced transfers. We find precise zero effects on total health expenditures for both mothers and children. However, composition changes, including fewer family physician visits, indicate that mothers had less time to seek health care. We find precise zero effects on children's test scores and graduation, but modest reductions of intergenerational transmission of welfare. |
| Keywords: | welfare, health, public |
| JEL: | H23 H31 I38 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:clefwp:51&r=pbe |
| By: | Claudia Kettner; Eva Wretschitsch (WIFO) |
| Abstract: | In the "Fit for 55" package of July 2021, the European Commission proposed inter alia a revision of the energy taxation directive with the intent of increasing tax rates for fossil fuels that should contribute to achieving the EU's emission reduction targets for 2030. Since then, climate policy challenges in the EU have been amplified by sharp increases in electricity and gas prices mainly as a result of the war in Ukraine. Energy price spikes have led to the implementation of numerous compensation measures for households and firms in EU member countries. In this article, we provide an overview of the discussion on energy taxation in the EU and analyse compensation measures implemented during the energy crisis. We find that energy cost related compensation measures counter climate policy efforts. A stronger focus on vulnerable groups would have reduced the overall costs of measures and entailed stronger energy efficiency incentives. |
| Keywords: | EU, Energy taxation, Energy cost subsidies, Energy crisis |
| Date: | 2023–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2023:i:656&r=pbe |
| By: | Saccal, Alessandro |
| Abstract: | This note shows that the Italian Mini BOTs proposed in 2019 bore the potential neither to become Italian legal tender nor to practically increase Italian government debt, but to practically cause a mere reduction in taxation and thence in government spending or transfers. Since the Eurozone practically excluded an increase in government debt or a monetisation of that which the Italian treasury owed certain firms the Italian Mini BOTs, precisely because of the probable uncertainty associated with them, would have (i) stimulated expenditure more than a taxation rebate to the said firms and (ii) facilitated Italy’s hypothetical abandonment of the Eurozone, seemingly being the one and only reason for which all of their critics opposed them. This note in fact proposes the direct emission of Italian taxation credit certificates endowed with a further reduction in taxation conditional on their use for consumption, termed “Certificati a Consumo di Compensazione Fiscale”, thereby attaining to the said two ends as well as to that of alleviating the liquidity shortage on the part of firms and the private sector at large without recourse to monetary policy. |
| Keywords: | CCCFs; government budget constraint; government debt; government spending; Italian Mini BOTs; miniature treasury bills; money supply; public finance; taxation; taxation credit certificates; transfers. |
| JEL: | E19 E42 E44 E51 E52 E58 E61 E62 E63 E65 G21 G23 G28 H20 H30 H60 |
| Date: | 2023–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115857&r=pbe |
| By: | Áureo de Paula; Imran Rasul; Pedro CL Souza |
| Abstract: | Social interactions determine many economic behaviors, but information on social ties does not exist in most publicly available and widely used datasets. We present results on the identification of social networks from observational panel data that contains no information on social ties between agents. In the context of a canonical social interactions model, we provide sufficient conditions under which the social interactions matrix, endogenous and exogenous social effect parameters are all globally identified. While this result is relevant across different estimation strategies, we then describe how high-dimensional estimation techniques can be used to estimate the interactions model based on the Adaptive Elastic Net Generalized Method of Moments. We employ the method to study tax competition across US states. We find that the identified social interactions matrix implies tax competition differs markedly from the common assumption of competition between geographically neighbouring states, providing further insights for the long-standing debate on the relative roles of factor mobility and yardstick competition in driving tax setting behavior across states. Most broadly, our identification and application show that the analysis of social interactions can be extended to economic realms where no network data exists. |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:azt:cemmap:02/23&r=pbe |