Business Commons^™

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 …

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.

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 …

The Rich, Lucas A. Santos

English Department: Research for Change - Wicked Problems in Our World

The rise of the super rich dramatically rose in the 1980’s. The once dominant oil and gas sector was taken over by finance and technology overall. We are able to see a rise of these super rich, or the one percent, and even how quickly they were able to recover from the 2008 Recession. Now, the one percent are making continuous substantial gains in a current world, where a pandemic has struck and many are struggling. I talk about the use of public policy in order to regain this economic gap between the one percent and the rest of the …

Will Create Resolve The Philippines’ Unemployment Woes Amidst The Covid-19 Pandemic?, Krista Danielle Yu, Marites Tiongco

Angelo King Institute for Economic and Business Studies (AKI)

In response to the COVID-19 pandemic, there is a proposal to amend the Corporate Income Tax and Incentives Reform Act (CITIRA) into the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Act. The proposed amendments are as follows: (a) An immediate five percentage point cut into the corporate income tax (CIT) rate starting July 2020; (b) Maintaining for up to nine years the status quo for registered business activities enjoying the 5% tax on gross income earned (GIE) incentive; and (c) More flexibility for the President to grant a combination of fiscal and non-fiscal incentives, which will be critical …

Tax Considerations For Funds Structuring In Asia, Vincent Ooi

Research Collection Yong Pung How School Of Law

Tax considerations play a major role in the decisions of fund managers of where to base their funds. The highly mobile nature of capital has resulted in tax competition, leading to several host jurisdictions for funds in Asia (Hong Kong, Singapore, Labuan, and the BVI) having very similar tax characteristics in terms of low effective corporate income tax rates; no capital gains taxes; no exit taxes; a single tier of taxation; and generally no withholding taxes. Other ways in which jurisdictions have attempted to distinguish themselves include a strong Double Tax Agreement network, certainty on the taxation of the carried …

A Taxonomy Of Non-Dictatorial Domains, Shurojit Chatterji, Huaxia Zeng

Research Collection School Of Economics

We provide an exhaustive classification of all preference domains that allow the design of unanimous social choice functions (henceforth, rules) that are non-dictatorial and strategy-proof. This taxonomy is based on a richness assumption and employs a simple property of two-voter rules called invariance. The preference domains that form the classification are semi-single-peaked domains (introduced by Chatterji et al. (2013)) and semi-hybrid domains (introduced here) which are two appropriate weakenings of the single-peaked domains, and which, more importantly, are shown to allow strategy-proof rules to depend on non-peak information of voters’ preferences. As a refinement of the classification, single-peaked domains and …

Carbon Taxes And The Composition Of New Passenger Car Sales In Europe, Orkhan Nadirov, Jana Vychytilová, Bruce Dehning

Accounting Faculty Articles and Research

This paper examines the effectiveness of implementing carbon taxes to reduce carbon dioxide emissions from transport. Using the system Generalized Method of Moments estimator, we utilize cross-country analysis for the first time to study the impact of carbon taxes on the composition of petrol versus diesel passenger cars sold in 17 countries over the period 2013–2017. The results suggest that increasing carbon taxes affects consumer behavior, causing a significant shift from petrol to diesel fuel vehicles, controlling for factors such as the price of passenger cars, fuel price, interest rates, income level, population density, inflation, and vehicle stock.

Assessing The Potential Impacts Of Reducing Philippine Corporate Income Tax And Reforming Sectoral Incentives On Poverty And Employment, Caesar Cororaton, Marites Tiongco

Angelo King Institute for Economic and Business Studies (AKI)

The Philippines needs to re-align its corporate income tax rates to its neighboring ASEAN countries to be competitive. Thus, the reduction in the corporate income tax rate, which is 30% at present to 20% in 2029 under the tax reform, is critical. However, because corporate income tax is a major source of government revenue, corporate incentives have to be reduced as well to finance/compensate for the reduction in the corporate tax. Also, to realize the full economic benefit of the reform, the government has to ensure that the resulting higher corporate income is reinvested back to the economy.

Tax Progressivity And Entrepreneurial Dynamics, Orkhan Nadirov, Bruce Dehning

Accounting Faculty Articles and Research

This study examines how tax progressivity affects entrepreneurial dynamics in 18 countries. The results show that increased downside progressivity has a positive influence on the transition rate from nascent entrepreneurship to established business ownership. In addition, only downside progressivity calculated using marginal tax rates is related to the transition ratio, implying that it is marginal tax rates, and not average tax rates, that are used in the entrepreneurial decision-making process. This paper contributes to our understanding of entrepreneurial dynamics and the effect of tax progressivity on the transition from nascent entrepreneurship to established business ownership.

Portland Parks & Recreation: Funding And Financial Impact Analysis, Peter Hulseman, Katelyn Kelley, Hoang Nguyen, Emma Brophy, Northwest Economic Research Center

Northwest Economic Research Center Publications and Reports

For this report, the Northwest Economic Research Center (NERC) investigated six potential revenue generating measures, as requested by Portland Parks and Recreation (PP&R). This research includes an analysis of the revenue potential for each tax, the impacts of compression in property taxes, and an assessment of tax incidence.

Three of the funding options investigated are forms of property tax: a temporary local option tax, a permanent special district tax, and a general bond obligation. Using 2017 property tax data, NERC built a model that simulates these tax increases for each tax lot in Portland. The growth of Assessed Value (AV) …

What Really Needs To Be Done To Close Tax Haven Loopholes?, Singapore Management University

Perspectives@SMU

While media shaming of corporations which profit-shift to a tax haven is an obvious deterrent of such activity, governments need to change tax laws in order to have a real impact

The Effects Of The Tcja On Missouri Taxpayers, Elouise Hardwrict

2020 Academic Exhibition

The purpose of this presentation is to inform the general public on the effects that recent tax reform or the Tax Cut and Jobs Act has on the state of Missouri and Missouri taxpayers. While some Missourians may not be affected by these changes, others may be experiencing any impact on a more significant scale. There are benefits from this tax reform, as well as some downfalls which is a significant change for some taxpayers.

Legalized Sports Betting, Vlt Gambling, And State Gambling Revenues: Evidence From West Virginia, Brad Humphreys

Economics Faculty Working Papers Series

A Supreme Court decision legalizing sports betting in the US led states to legalize sports betting in order to generate new tax revenues from wagering on sports events. Most states already permit other forms of gambling and receive tax revenues from these sources. The literature analyzing consumer substitution in gambling spending contains some evidence on the impact of expansions in many types of gambling, but no evidence on the impact of expanded sports betting. This paper exploits the legalization of sports betting and timing of sports book openings in West Virginia to analyze the impact of expanded sports betting on …

Mscpa Centennial History: A Century Of Cpas In Mississippi, James W. Davis, Dale L. Flesher, Annette Pridgen, Mississippi Society Of Certified Public Accountants

Publications of Accounting Associations, Societies, and Institutes

No abstract provided.

Behavioral Agent-Based Framework For Interacting Financial Markets, Heba M. Ezzat Dr.

Business Administration

Purpose – This paper aims at developing a behavioral agent-based model for interacting financial markets. Additionally, the effect of imposing Tobin taxes on market dynamics is explored. Design/methodology/approach – The agent-based approach is followed to capture the highly complex, dynamic nature of financial markets. The model represents the interaction between two different financial markets located in two countries. The artificial markets are populated with heterogeneous, boundedly rational agents. There are two types of agents populating the markets; market makers and traders. Each time step, traders decide on which market to participate in and which trading strategy to follow. Traders can …

Spillover Effects Of Clients’ Tax Enforcement On Financial Statement Auditors: Evidence From A Discontinuity Design, Travis K. Chow, Jeffrey Pittman, Muzhi Wang, Le Zhao

Research Collection School Of Accountancy

We examine the impact of clients’ tax enforcement on financial statement auditors. In a regression discontinuity design, we exploit the firm-registration-date-based application of a new rule that assigns firms to two different tax enforcement regimes. Our analysis implies that auditors exert less effort–evident in lower audit fees and shorter audit report lags–when their clients are monitored by the more stringent tax authority. In results supporting that audit quality improves in this situation despite the fall in auditor effort, we report that clients subject to tougher tax enforcement exhibit a lower incidence of accounting restatements and tax-related restatements. Additionally, we find …

The Minimum Wage And Corporate Tax Planning, Xiaoxi Li, Chee Yeow Lim, Yanping Xu

Research Collection School Of Accountancy

This paper investigates the impact of the minimum wage (MW) on corporate tax planning. By exploiting heterogeneity in the MW level across cities and over time in China, we find that increases in the MW are associated with greater tax planning by firms. Our results are robust to the consideration of a sample of contiguous firms in two adjacent cities subject to different MWs, a change specification and a difference-in-differences research design that exploits the enactment of the Labor Contract Law in 2008 as an exogenous shock to the MW. In cross-sectional analyses, we find that the positive impact of …

Mike Seeborg On Illinois Gas Tax, July 9, 2019, Eric Stock

Interviews for WGLT

Professor of Economics Mike Seeborg discusses the July 2019 gas tax increase with Eric Stock from WGLT Radio.

Haskins & Sells Service Classification, John Raymond Wildman

Haskins and Sells Publications

Original typescript from Haskins & Sells;

Part Which Accounting Has Played In The Development Of Modern Industry, John Raymond Wildman

Haskins and Sells Publications

No abstract provided.

Tax Uncertainty And Business Activity, Jungho Lee, Jianhuan Xu

Research Collection School Of Economics

We investigate the extent to which uncertainties about tax policies affect business activities. We develop a statewide tax-uncertainty measure (TU measure) and show that it captures state corporate tax uncertainty. By comparing adjacent counties across state borders, we show that increasing tax uncertainty by one standard deviation (a 30% increase in the TU measure) leads to a 0.17% point per-year decrease in the growth rate of establishments over two years. The result holds after conducting a variety of robustness checks and is not likely to be driven by general state-policy uncertainties.

Asc 606 And Taxable Revenue: The New Revenue Recognition Standard Combined With Tax Code Changes Introduced By The Tax Cuts And Jobs Act Will Impact When Taxable Revenue Is R, Robert Bloom

2019 Faculty Bibliography

The article focuses on the new revenue recognition standard known as Accounting Standards Codification (ASC) 606 or International Financial Reporting Standard (IFRS) 15. Topics covered include the need for tax professionals to learn about the new accounting revenue to comply with the U.S. Tax Cuts and Jobs Act of 2017, the impact of ASC 606 on revenue reporting, and aligning taxable and accounting revenue.

The Tcja And The Questionable Incentive To Incorporate, Part 2, Michael S. Knoll

All Faculty Scholarship

The Tax Cuts and Jobs Act (TCJA) has put the question should a business be organized as a passthrough entity or as a corporation at center stage. The TCJA eliminated much of the tax disadvantage from using the corporate form, but did Congress go so far that it advantaged corporations relative to pass-through entities? Some prominent commentators say yes. They argue that the federal income tax now encourages individual owners of pass-through businesses to restructure their business as subchapter C corporations, and they predict that the TCJA will lead to a cascade of incorporations. The principal driver of the shift …

The Tcja And The Questionable Incentive To Incorporate, Michael S. Knoll

All Faculty Scholarship

The Tax Cuts and Jobs Act (TCJA) has put the question should a business be organized as a passthrough entity or as a corporation at center stage. The TCJA eliminated much of the tax disadvantage from using the corporate form, but did Congress go so far that it advantaged corporations relative to pass-through entities? Some prominent commentators say yes. They argue that the federal income tax now encourages individual owners of pass-through businesses to restructure their business as subchapter C corporations, and they predict that the TCJA will lead to a cascade of incorporations. The principal driver of the shift …

Corporate Tax Aggressiveness And Insider Trading, Sung Gon Chung, Beng Wee Goh, Kiat Bee Jimmy Lee, Terry Shevlin

Research Collection School Of Accountancy

We examine the association between corporate tax aggressiveness and theprofitability of insider trading under the assumption that insider tradingprofits reflect managerial opportunism. We document that insider purchaseprofitability, but not sales profitability, is significantly higher on average inmore tax aggressive firms. We also find that the positive association between taxaggressiveness and insider purchase profitability is attenuated for firms withmore effective monitoring and is accentuated for firms with a more opaqueinformation environment.In addition, we provide empirical evidence that tax aggressiveness issignificantly associated with greater insider sales volume in the fiscal yearprior to a stock price crash. Finally, we find that the association …

How Tax Rates Can Achieve Greater Savings For Married Couples, Teng Aun Khoo, Kai Guan Clement Tan

Research Collection School Of Accountancy

In the second of our two-part guide, Khoo Teng Aun and Clement Tan Kai Guan look at how to use tax rates to achieve greater savings for married couples.

Proposed Reforms To Singapore Goods And Services Taxation In The Digital Economy, Hern Kuan Liu, Vincent Ooi

Research Collection Yong Pung How School Of Law

With the rapid development of the digital economy and the increasing importance of GST as a source of tax revenue, the Singapore Government has proposed several reforms to tighten the collection of tax revenue and tap its tax base more efficiently. The reforms focus on activating the currently dormant “reverse charge” mechanism to collect GST on supplies of services “imported” by businesses; creating an “overseas vendor registration regime” to catch digital products “imported” by individuals; and clarifying the “place of supply” requirement for supplies of digital products. This article considers the reforms from the perspective of a foreign business that …

Abuses And Penalties Of A Corporate Tax Inversion, James G.S. Yang, Leonard J. Lauricella Professor, Frank J. Aquilino

Department of Accounting and Finance Faculty Scholarship and Creative Works

There is a serious problem in international taxation today. Many United States (U.S.) multinational corporations have moved abroad to take advantage of a lower tax rate in a foreign country. As a consequence, the tax base in the U.S. has been seriously eroded. This practice is known as “corporate tax inversion”. This paper discusses the abuses and penalties of this phenomenon. It is rooted in some deficiencies in the U.S. tax law. This paper points out that the U.S. has the highest corporate tax rate in the world. It imposes tax on worldwide income. It permits deferral of tax on …

Visions Of The Future In Budgetary Discourse, Ewan Macdonald, Brendan O'Rourke, John Hogan

Conference papers

Whilst there is ample precedent to argue against the common-sense notion that the ideological leanings of political parties are congruent with their implementation of fiscal policy (Boix, 2000; Garrett & Lange, 1991; Hibbs, 1977; Liargovas & Manolas, 2007), there is a relative dearth of research on the role of discourse in shaping fiscal policy with one notable exception by Maatsch (2014). With this in mind, we approach the issue of examining fiscal policy through a fixed, contested and subverted within particular texts” (Howarth, 2005, p. 341). This paper examines how the future is constructed in Irish budget speeches delivered between …