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on Public Finance |
| By: | Salim Ergene |
| Abstract: | This paper studies optimal government interventions to recapitalize corporations under tight financial conditions. The policymaker can finance the recapitalization program through income taxes and an inflation tax on money holdings. However, households operating the labor-intensive production technology can evade their tax obligations. Growing tax evasion raises the tendency to monetize interventions. Partially monetizing recapitalization yields welfare gains, as an inflation tax reallocates resources from less to more productive sectors. However, financing unproductive government spending through seigniorage revenue becomes an inferior policy, as contemporaneous inflation costs outweigh the expansionary effects of fiscal policy. Pecuniary externalities generate scope for macroprudential policies, mitigating the effects of financial shocks. |
| Keywords: | Tax evasion, Recapitalization, Currency mismatch, Depreciation |
| JEL: | E12 E41 E26 E58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:wpaper:2507 |
| By: | Alves, Cassiano Breno Machado; Costa, Carlos Eugênio da; Lobel, Felipe; Alves, Katia Aiko Nishiyama |
| Abstract: | Starting with an optimal income-splitting household tax schedule we assess the impact of gender-specific subsidies. Motivated by evidence that spouses’ relative earnings influence their power, we let bargaining weights respond to this subsidy, and household labor supply choices vary in turn with weights. Quantitative exploration reveals that a subsidy on women’s earnings is welfare-improving, but that neglecting the empowering effect of subsidies greatly underestimates those gains.In our baseline assessment, 99.6% of all women benefit from the policy. For 78% of women, welfare gains are no smaller than 5%, and for 15%, gains exceed 10%. The optimal subsidy for women is about 16% while the benchmark of models where the power channel is neglected is close to 0% with trivial average gains. We find that it is women in the most productive households who benefit the most from this policy. |
| Date: | 2025–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:fgv:epgewp:848 |
| By: | Giulia Aliprandi (EU Tax Observatory) |
| Abstract: | The Australian government is implementing a new public Country-by-Country Reporting (CbCR) regime to enhance tax transparency for large multinational enterprises. This note analyzes the key aspects of the Australian Public CbCR legislation, how it compares to other reporting standards, its potential impact, and blind spots. The analysis reveals that while the Australian Public CbCR legislation aligns with global trends and initiatives, there are mismatches in the requirements implemented across different countries, which may leave gaps in transparency. To maximize effectiveness, there is a need to align with the best global transparency practices and avoid creating new loopholes. The note estimates that approximately 50% of large US companies and a significant portion of multinationals from countries like China, Japan, and Germany will potentially have to disclose information on their tax haven presence. However, some key tax havens are missing from the draft list of countries required for disaggregated reporting. Australia should not rely on the EU CbCR directive to improve transparency on European tax havens but include them in the list of countries to be disclosed. |
| Keywords: | Public CbCR, tax transparency, multinational enterprises |
| JEL: | H26 F23 M48 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:dbp:plnote:012 |