|
on Public Finance |
| By: | Kristoffer Berg |
| Abstract: | As corporate income tax rates have fallen across the world, other capital taxes become more important. This paper studies the choice between income taxation at the corporate and shareholder level. I develop a sufficient-statistics framework to determine optimal tax reforms. The main result is that when the incidence of the corporate income tax on workers is higher than that of shareholder income taxes, lowering the former and reducing the latter is typically optimal. In a policy application, I derive optimal reform directions for corporate and shareholder income taxes for a large and a small economy. |
| Keywords: | corporate income tax, dividend taxes, optimal capital taxation |
| JEL: | F21 H21 H22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12149 |
| By: | Silvia Domit; Yomna Gaafar; Duncan MacDonald; Ms. Carolina Osorio-Buitron |
| Abstract: | Despite recent progress, Türkiye’s low labor force participation (LFP) rate is macrocritical and stands out internationally. This paper examines two channels through which fiscal policy can affect LFP. First, we estimate the impact of Türkiye’s 2022 Minimum Living Allowance reform, which removed tax disadvantages faced by secondary earners. Second, we simulate the impact of conditional subsidies on Türkiye’s LFP. The analysis was based on four empirical models estimated for Türkiye using labor force survey micro data. The results confirmed that: (i) Turkish secondary earners increased their labor supply by more than primary earners following the removal of tax disadvantages in the 2022 reform; (ii) conditional childcare subsidies lead to a large increase in LFP at relatively low fiscal costs; (iii) conditional subsidies can achieve better labor market outcomes and further reduce fiscal costs compared to direct transfers. |
| Keywords: | Türkiye; Tax Reform; Labor Force Participation; Childcare Subsidies; Employment; Personal Income Tax; TaxFit |
| Date: | 2025–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/187 |
| By: | Karri Vuoristo |
| Abstract: | The paper examines the effects of a value-added tax (VAT) withholding regime implemented in Uganda using administrative data from the Uganda Revenue Authority. By using modern two-way fixed effects models, the research estimates the dynamic effects and finds that firms increase their reported outputs by approximately 17.8 per cent and that the estimated value added increases by around 35 per cent. The study finds no effect on reported inputs and offers suggestive evidence that the positive effect found in outputs and value added might not be persistent across time. |
| Keywords: | Taxation, Tax compliance, withholding VAT, Uganda |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-63 |