Business Commons^™

Vat Treatment Of The Financial Services: Implications For The Real Economy, Ismail Baydur, Fatih Yilmaz

Research Collection School Of Economics

Financial institutions are exempt from the value-added tax (VAT) in most countries. We develop a general equilibrium model with endogenous firm entry and a banking sector to accommodate three key distortions related to exempt treatment: (i) self-supply bias in the banking sector, (ii) under-taxation of payment services, and (iii) input distortions in the business sector and tax cascading. We calibrate our model to the average of Germany, France, and the UK data. Our results show that repealing exempt treatment always increases tax revenues. However, welfare gains occur only at low VAT rates due to the hump-shaped VAT Laffer curve.

Making Money From Cryptocurrency? The Taxman May Call On You, Hern Kuan Liu, Vincent Ooi

Research Collection Yong Pung How School Of Law

Miners, forgers, hobbyists, traders – different rules apply. Just don’t assume crypto investment is somehow immune to taxation.

Small Fishes, Sharp Hooks: Obstacles To Economic Freedom Affecting Micro Small, And Medium Enterprises (Msmes) In Southeast Asian Countries, Blaise Kent Calpito, Jocef Fernand Ocampo, Chyna Tomas, Mary June Valenzuela, Rens Adrian T. Calub, Mitzie Irene P. Conchada, Arlene B. Inocencio, Alellie B. Sobreviñas, Marites Tiongco

Angelo King Institute for Economic and Business Studies (AKI)

Obstacles to economic freedom such as trade obstacles, finance obstacles, taxes, and corruption affect the ability of micro, small, and medium enterprises (MSMEs) to maximize firm performance. This policy brief is based on the observations made regarding the relationship of these obstacles to economic freedom in Southeast Asian countries Indonesia, Vietnam, the Philippines, and Malaysia. This will take into account the recent economic environment of each country.

An Evaluation Of Churchill Downs’ Tax Increment Financing District, Thomas E. Lambert

Faculty Scholarship

Tax increment financing districts (TIFs) have become important local government tools in the USA over the last several decades as ways to help bring public and/or private investment dollars into inner city areas and/or older neighbourhoods which are deemed to need revitalisation. Within the last ten years, the concept has become popular in Canada, and it has been used as a component piece of enterprise zone programmes in other nations.

This paper evaluates one of the first Kentucky USA TIFs started approximately 20 years ago with a pre-eminent Kentucky horse racing track, Churchill Downs, as the target for investment spending. …

Effects Of A Tax Reform In The Dominican Republic (Dr) During A Pandemic, Sofia Moquete

English Language Institute

The COVID-19 pandemic and the change of government produced negative effects in the DR. However the possibility of a tax reform during these times triggers future economic and social instability.

How Did The Youth’S Demand For Cigarette Products Respond To The Sin Tax Reform Act Of 2012?, Francis Ignatius L. Nieva

Angelo King Institute for Economic and Business Studies (AKI)

The excise tax on tobacco products in the Philippines has been historically low making the product very accessible even for the youth. In 2012, a Sin Tax Reform Law was passed which increased the excise tax on tobacco products by almost five times its previous value. This price increase is projected to reduce alchohol and tobacco products consumption for all demographic classifications, especially the youth. This study estimated the price elasticity of cigarette demand of the Filipino youth using regression analyses on the pooled Global Youth Tobacco Survey conducted in the Philippines for the years 2004 and 2015. Price elasticity …

What Do Americans Think About Federal Tax Options To Support Transportation? Results From Year Twelve Of A National Survey, Asha Weinstein Agrawal, Hilary Nixon

Mineta Transportation Institute

This report summarizes the results from the twelfth year of a national public opinion survey asking U.S. adults questions related to their views on federal transportation taxes. A nationally-representative sample of 2,516 respondents completed the online survey from February 5 to 23, 2021.

The questions test public opinions about raising the federal gas tax rate, replacing the federal gas tax with a new mileage fee, and imposing a mileage fee just on commercial travel. In addition to asking directly about support for these tax options, the survey collected data on respondents’ views on the quality of their local transportation system, …

Taxes And The Incentive To Work Under Flat And Progressive Tax Systems In Slovakia, Orkhan Nadirov, Bruce Dehning, Drahomira Pavelkova

Accounting Faculty Articles and Research

This study examines the impact of taxes on the incentive to work under flat and progressive tax systems. Of particular interest are the changes from progressive-to-flat and flat-to-progressive tax conditions. To measure the impact of taxes on the incentive to work under both scenarios, we relate hours worked with the effective marginal tax rates. Using national accounts data and the Prescott’s (2004) labor market model, Slovakian work hours were examined at points in time around the adoption of a flat tax system in 2004 and a progressive tax system in 2013. In Slovakia, there was a transition from a progressive …

2021 Business Tax Climate In The Mountain West, Katie M. Gilbertson, Peter Grema, Saha Salahi, Caitlin J. Saladino, William E. Brown Jr.

Economic Development & Workforce

This Fact Sheet summarizes a report by Jared Walczak and Janelle Cammenga of The Tax Foundation titled “2021 State Business Tax Climate Index.” The index compares how states structure tax systems to bolster state business activity and investments, and possible routes for future improvement. Scores and rankings are offered for the Mountain West states of Arizona, Colorado, Nevada, New Mexico, and Utah.

South Dakota V. Wayfair Inc. And Streamlined Sales And Use Tax Agreement: Effects On State Sales Tax Collections, S. Keith Lowe, Julie Staples, Cassandra L. Ward

Research, Publications & Creative Work

In South Dakota v. Wayfair Inc., the U.S. Supreme Court reversed precedent cases addressing collection standards and regulations for sales taxes. These two precedent cases held that an out-of-state retailer's liability to collect and remit sales tax to the consumer's respective state was contingent on whether the seller had a physical nexus in that state. Additionally, a collaboration among states led to the creation of the Streamlined Sales and Use Tax Agreement (SSUTA), which offered voluntary guidelines and policies to assist states in not only modernizing but maximizing sales tax collection amounts. This research paper utilizes quantitative analyses to examine …

Decentralization And Welfare: Theory And An Empirical Analysis Using Philippine Data, Tristan A. Canare

Economics Department Faculty Publications

This study theoretically and empirically analyzes the relationship between decentralization and welfare. The model identifies conditions in which a decentralized government is utility-maximizing compared to a centralized one. The empirical analysis utilized data from Philippine provinces to study the relationship between several decentralization indicators and welfare, as measured by per capita income, human development index, and poverty. Results suggest that fiscal independence, or the ability of local governments to generate their own revenues to finance their own expenditures rather than relying on central government transfers, is positively associated with per capita income and HDI. Moreover, this relationship is stronger when …

Do Equity And Accountability Get Lost In Losts? An Analysis Of Local Return Funding Provisions In California’S Local Option Sales Tax Measures For Transportation, Jaimee Lederman, Peter Haas, Stephanie Kellogg, Martin Wachs, Asha Weinstein Agrawal

Mineta Transportation Institute

This study explores how local return provisions of local option sales taxes (LOSTs) for transportation are allocated and spent to meet local and regional transportation needs. Local return refers to the component of county LOST measures that provides funding directly to municipalities in the county to be used to meet local needs. Local return has become a fixture in LOSTs; 58 LOST measures placed on the ballot in California (as of 2019) that have included local return in their expenditure plan have an average of 35% of revenues dedicated to local return. Local return provisions in the ballot measures often …

Regulatory Competition And State Capacity, Martin W. Sybblis

Faculty Articles

This Article explores an underlying tension in the regulatory competition literature regarding why some jurisdictions are more attractive to firms than others. It pays special attention to offshore financial centers (OFCs). OFCs court the business of nonresidents, offer business friendly regulatory environments, and provide for minimal, if any, taxation on their customers. On the one extreme, OFCs are theorized as merely products of legislative capture— thereby lacking any meaningful agency of their own. On the other hand, OFCs are conceptualized as well-governed jurisdictions that attract investment because of the high quality of their laws and legal institutions—indicating some ability to …

Pandemics, Paid Sick Leaves, And Tax Institutions, Alex Zhang

Faculty Articles

The COVID-19 pandemic is currently ravaging the world, and the United States has been largely unsuccessful at containing the coronavirus. One long-standing policy failure stands out as having exacerbated the pandemic in our country: the lack of a national mandate of paid sick leaves, without which workers face financial and workplace-cultural pressures to attend work while sick, thus spreading the virus to their fellow employees and the public at large.

This Article provides the blueprint for a national, subsidized mandate of paid sick leaves and two additional insights about our tax institutions as mechanisms of effectuating broader societal goals. It …

Dark Money Darker? Irs Shutters Collection Of Donor Data, Philip Hackney

Articles

The IRS ended a long-time practice of requiring most nonprofits to disclose substantial donor names and addresses on the nonprofit annual tax return. It is largely seen as a battle over campaign finance rather than tax enforcement. Two of the nonprofits involved, social welfare organizations and business leagues, are referred to as “dark money” organizations because they allow individuals to influence elections while maintaining donor anonymity. Many in the campaign finance community are concerned that this change means wealthy donors can avoid campaign finance laws and have no reason to fear being discovered. In this Article, I focus on whether …

Certain Effects Of Random Taxes, James R. Hines Jr., Michael J. Keen

Articles

This paper explores the implications of tax rate randomness, identifying circumstances in which revenue-neutral rate variability increases profitability, economic activity, and the efficiency of resource allocation. Furthermore, with heterogeneous taxpayers, tax rate variability is shown to perform an efficiency-enhancing screening function, imposing heavier expected tax burdens on less responsive taxpayers. And while efficient tax randomness enables governments to reduce average costs of taxation, it necessarily increases the marginal cost of taxation over some ranges of expected revenue, so may reduce efficient levels of government spending.