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on Public Finance |
| By: | Lindhe, Tobias (Uppsala Center for Fiscal Studies); Södersten, Jan (Uppsala Center for Fiscal Studies) |
| Abstract: | This paper examines how the distortions caused by dividend taxation depend on whether or not shareholders can recover their original equity injections without being subject to the dividend tax. We point out the alternative assumptions in the literature on this, and we compare two different tax regimes, one where it is impossible for the firm to pay cash to its shareholders that is not taxed as dividends, the other where the shareholders are allowed a tax-free return of the original capital contributed through new issues. Our analysis shows that the regimes imply a substantial difference to our perceptions of the distortive effects of dividend taxation. |
| Keywords: | dividend taxation; share repurchases; equity trap; cost of capital; nucleus theory; growth path |
| JEL: | H24 H25 H32 |
| Date: | 2013–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uufswp:2013_009&r=pub |
| By: | Amadeo Piolatto; Matthew Rablen |
| Abstract: | The standard expected utility model of tax evasion predicts that evasion is decreasing in the marginal tax rate (the Yitzhaki Puzzle). The existing literature disagrees on whether prospect theory overturns the puzzle. We disentangle four distinct elements of prospect theory and find loss aversion and probability weighting to be redundant in endogenous specification of the reference level. These classes include, as special cases, the most common specifications in the literature. New specifications of the reference level are needed, we conclude. |
| Keywords: | prospect theory, tax evasion, Yitzhaki puzzle, stigma, diminishing sensitivity, reference dependence, endogenous audit probability, endogenous reference level |
| JEL: | H26 D81 K42 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:13/25&r=pub |
| By: | Osamu Nakamura (International University of University) |
| Abstract: | This paper analyzes the effectiveness of non-traditional monetary policy measures implemented by the Bank of Japan (BOJ) based on the quantity theory of money. The reduced form equation regression results explain that quantity easing policy measures have very limited effects on the economy, especially on inflation under the zero lower bound on interest rates. Therefore, it is worth noting that stimulating the demand-side economy and hence money demand through credit creation is much important rather than the expansion of money stock under the zero percent interest rates policy. In other words, the new phase of monetary easing policy measures by the BOJ will not be effective to overcome the deflationary gap, although around one percent inflation will be observed in the second and third fiscal year, which is expected to be affected by rise in import price through yen depreciation, according to the scenario simulation in this study. |
| Keywords: | non-traditional mone tary policy, money multiplier, quantitative easing (QE), quantity theory of money, inflation target policy |
| JEL: | E43 E52 E58 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2013_11&r=pub |
| By: | Pierre LeBlanc; Stephen Matthews; Kirsti Mellbye |
| Abstract: | The height of the economic and financial crisis is now well past, but its aftermath remains wide-ranging, with many OECD countries still some way from restoring strong and sustainable economic growth. Even before the Great Recession OECD economies faced a range of challenges, most notably from globalisation, but also other challenges such as climates change, growing inequality and population ageing. Against this background, this paper discusses how tax policies have responded to fiscal and macroeconomic developments over the past five years and these longer-term structural economic developments.<P>Le paysage des politiques fiscales, cinq ans après la crise<BR>Le paroxysme de la crise économique et financière est loin derrière nous, mais les séquelles restent multiples, et de nombreux pays de l’OCDE ont encore du chemin à parcourir avant de retrouver une croissance économique forte et durable. Avant même la Grande récession, les économies de l’OCDE se heurtaient déjà à un éventail de problématiques telles que, notamment, les incidences de la mondialisation, mais aussi à des défis comme le changement climatique, le creusement des inégalités et le vieillissement de la population. Dans ce contexte, ce rapport explique comment les politiques fiscales se sont adaptées face aux évolutions budgétaires et macroéconomiques de ces cinq dernières années et face à ces bouleversements économiques structurels de plus long terme. |
| Date: | 2013–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ctpaaa:17-en&r=pub |
| By: | Bert Brys; Stephen Matthews; Richard Herd; Xiao Wang |
| Abstract: | This paper compares the tax system in China with the tax system in OECD countries and the tax reforms China and OECD countries have implemented in the past. The analysis focuses on those taxes and tax issues which are currently on China’s reform agenda, including the consumption taxes (especially the integration of the “business tax” into the VAT), environmentally-related taxes, the personal income tax, fiscal relations between the central and sub-central levels of government and property taxes. The paper provides a (preliminary) analysis of the tax-to-GDP ratio and the tax mix in China as well as the average and marginal tax wedge on labour income, by applying the OECD’s Revenue Statistics and Taxing Wages methodology. Although a country’s culture, traditions and legal system play an important part in shaping its tax regime and how it can be reformed, the paper also reviews the general design issues on how to make the tax system in China more growth-friendly, simple and transparent, less distortive and fairer. The paper contains a detailed discussion and evaluation of each tax and considers possible directions for future tax reform in China.<P>Politique et réformes fiscales en République Populaire de Chine<BR>Ce document compare le système fiscal en Chine avec celui des pays de l’OCDE en tenant compte des réformes que ces pays ont mis en oeuvre par le passé. L’analyse se concentre sur les impôts et les questions fiscales pour lesquels la Chine envisage une réforme, y compris les impôts sur la consommation (notamment l’intégration de « la taxe d’affaires » dans la TVA), les taxes liées à l’environnement, l’impôt sur le revenu des personnes physiques, les relations budgétaires entre l’administration centrale et les administrations infranationales, ainsi que les impôts fonciers. Ce document présente une analyse (préliminaire) du ratio impôts/PIB et de la structure fiscale en Chine, ainsi que du coin fiscal moyen et marginal sur les revenus du travail, en appliquant la méthodologie utilisée dans les publications de l’OCDE Statistiques des recettes publiques et Les impôts sur les salaires. Bien que la culture, les traditions et le système juridique d’un pays jouent un rôle important pour façonner son régime fiscal et influent sur les possibilités de réforme, ce document aborde également des questions générales de conception en vue de déterminer comment faire en sorte que le système fiscal en Chine soit plus favorable à la croissance, simple, transparent et équitable, et induise moins de distorsions. Ce document examine et évalue chaque impôt en détail et réfléchit aux orientations possibles de la future réforme fiscale en Chine. |
| Keywords: | tax reform, tax policy, China, réforme fiscale, politique fiscale, Chine |
| JEL: | H2 H7 |
| Date: | 2013–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ctpaaa:18-en&r=pub |