Taxation Commons^™

Competition For Fdi With Vintage Investment And Agglomeration Advantages, Kai A. Konrad, Dan Kovenock

Economics Faculty Articles and Research

Countries compete for new FDI investment, whereas stocks of FDI generate agglomeration benefits and are potentially subject to extortionary taxation. We study the interaction between these aspects in a simple vintage capital framework with discrete time and an infinite horizon, focussing on Markov perfect equilibrium. We show that the equilibrium taxation destabilizes agglomeration advantages. The agglomeration advantage is valuable, but is exploited in the short run. The tax revenue in the equilibrium is substantial, and higher on “old” FDI than on “new” FDI, even though countries are not allowed to use discriminatory taxation. If countries can provide fiscal incentives for …

Gubernatorial Reputation And Vertical Tax Externalities: All Smoke, No Fire?, Per G. Fredriksson, Khawaja Mamun

WCBT Working Papers

This paper investigates whether reputation-building strategies guide U.S. governors’ responses to changes in federal cigarette taxes (i.e. vertical tax interactions). Using 1975-2000 state cigarette tax data, we find that reputation-building strategies affect the nature of vertical tax externalities. Lame duck governors exhibit a more negative response to changes in the federal cigarette tax. Thus, by reducing the state tax base and by causing a decline in the state tax, an increase in the federal tax rate reduces state tax revenues in states headed by lame ducks.

Tobacco Politics And Electoral Accountability In The United States, Per G. Fredriksson, Khawaja Mamun

WCBT Working Papers

This paper investigates whether reputation-building strategies guide U.S. governors’ state cigarette tax choices, and whether the federal cigarette tax influences such behavior. Using 1975-2000 data, we find evidence that governors in states with relatively important agricultural tobacco production and tobacco manufacturing, and which are densely populated by smokers, appear prone to reputation-building. Moreover, lame ducks are more prone to raise the state cigarette tax the lower the federal tax.

Corporate Tax, Capital Structure, And The Accessibility Of Bank Loans: Evidence From China, Liansheng Wu, Heng Yue

Research Collection School Of Accountancy

In this paper, we investigate whether listed firms in China adjust their capital structure in response to an increase in the corporate taxrate. Although theories of capital structure suggest that corporate tax is an important determinant of capital structure, how exogenouschanges of the tax rate affect firms’ leverage decisions has not been fully explored. We examine a unique circumstance in which the Chinesegovernment increased the corporate tax rate of firms that had previously received local government tax rebates. The evidence indicatesthat these firms increased their leverage when the corporate tax rate increased. Further investigation suggests that the adjustment ofleverage was …

The Lt. Governor Encourages Lawyers To Take Advantage Of State Resources To Aid Ohio's Economic Development, Lee Fisher

Law Faculty Articles and Essays

For the last several months, my colleagues and I at the Ohio Department of Development have been focused on the formation of a statewide economic development strategy that will establish our priorities and guide our future decisions. Ultimately this strategy will serve as an economic development plan for Ohio that will be led primarily by the Ohio Department of Development, along with the Governor's office and other state agencies and departments. With full implementation, our strategic plan will not only guide Ohio's long-term investments, but will also help guide our daily decisions.

Tax Treatment Encourages Residential Investment, Thomas Power

Articles

The economic survey on Ireland by the OECD (issue 5 2008) proposed phasing out policies that distort the housing market, which in turn could help to dampen future housing cycles and maintain competitiveness in the economy.

Specifically it suggests that tax breaks favouring owner occupation contributes to making housing expensive and that these effects could be reduced either by “limiting mortgage tax relief… or by implementing a property tax”.

Property Tax Revenue Decline In The State Of California And The Implications: An Examination Of Selected Local Governments In The State Of California, Ryan M. Mauldin

MPA/MPP/MPFM Capstone Projects

The Center for Responsible Lending projects California local governments to experience a $107 billion dollar decrease in home values and taxable property rolls as a result of subprime mortgage related foreclosures [Lending, 2008]. Due to Proposition 13, property taxes do not account for a substantial portion of local government revenue. They do, however, constitute 53% of statewide K-14 funding, as stipulated by Proposition 98 (Education Revenue Augmentation Fund or ERAF). As a result of ERAF, local governments (defined as counties, cities, schools, and special districts) receive less money through a complex fund shifting process that offsets statewide general fund spending. …

State Corporate Tax Policy: Is Tax Competition The Main Determinant?, Gabriel Ramón Serna

MPA/MPP/MPFM Capstone Projects

In the past few decades state corporate income tax policy and coordination/harmonization of corporate income taxes have been regularly discussed in the tax policy literature. The reason for this level of attention is that capital is assumed to be highly mobile across nations or unions with multiple jurisdictions with differential corporate tax rates (Bucovetsky, 1991; Cnossen, 2003; Frey & Eichenberger, 1996; Gordon, 1983; Isard, 1990; Keen & Marchand, 1997). Further, much of the literature focuses on states’ “race to the bottom” in terms of corporate income taxation or incentives to base capital in their jurisdictions, and the tendency for this …

Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 2007, Central Bank Of Nigeria

CBN Annual Report

In 2007, the Central Bank of Nigeria (CBN) faced significant challenges in monetary management due to statutory allocations to government tiers, autonomous foreign exchange inflows, and pre-election spending. These challenges were addressed through Open Market Operations (OMO), issuance of treasury securities, standing facilities, and foreign exchange swaps. The introduction of the monetary policy rate (MPR) in December 2006 moderated inter-bank rates, encouraged trading, and improved the transmission of monetary policy actions. The Bank intensified its non-regular management activities to ensure the Policy Support Instrument (PSI) target was met. The financial system at end-2007 comprised the CBN, the Nigeria Deposit Insurance …

The Perceived Effects Of Increased Fuel Prices, Sean O'Roark

Undergraduate Theses and Capstone Projects

This project, “Perceptions About the Causes and Effects of Increasing Fuel Prices,” seeks to understand the attitudes of major newspaper editorials concerning the increase of fuel prices. A content analysis of various newspaper editorials from the New York Times, Washington Times, Wall Street Journal, and the Washington Post was conducted to gain an understanding of the attitudes and predictions these writers put forth concerning the increase in the price of fuel. Some of the areas this study focused on included what the writer’s attitude was, what were the attributions of and consequences of increased prices, and what was the main …

Capital Gains, Dividends, And Taxes: Market Reactions To Tax Changes, Mark Foster, Larry White, Michael T. Young

All Faculty Scholarship for the College of Business

The purpose of this study is to examine the effect of a capital gains tax reduction on the stock price of firms that have not historically paid a dividend. If markets are semi-strong-form efficient, one would expect that the market price would have already adjusted prior to the day the announcement was made, assuming no new information was included in the announcement. If markets have not already incorporated the information, there would be a possibility for abnormal returns from investing in the stocks on the date of the announcement. This paper studies the returns from companies prior to, and subsequent …

Public Provision Of Service For The Elderly: An Empirical Analysis Of County-Level Senior Service Property Tax Levies, Brigitte Blom Ramsey

MPA/MPP/MPFM Capstone Projects

Last year the baby boom generation began turning 60. Consequently, the number of senior citizens is expected to double by the year 2030. On average, a person reaching the age of 60 can expect to live an additional 22 years. (NCHS, 2003) Along with increased life expectancy comes a greater probability for chronic illness, physical impairment and loss of independence. Of those 85 and older, 55% will need some type of long-term care or personal assistance. (CBO, 2004)

A recent collaborative study, “The Maturing of America: Getting Communities on Track for an Aging Population”, notes that less than half of …

Variations In Dropout Rates Across Virginia, Joshua K. Bowser

Undergraduate Theses and Capstone Projects

Using Ordinary Least Squares (OLS) regression analysis, this study attempts to capture variation in dropout rates across Virginia counties and cities. With the respective dropout rates as the dependent variable, seven independent variables are used accordingly in order to provide as much explanatory power as possible. At the 10 percent significance level, four of seven variables are statistically significant with an adjusted R2 of .374. Important policy implications can be derived from the model and its statistically significant variables. The model finds that the percentage of blacks in the population, university access, the unemployment rate and single female-headed households to …

Offshore Strategies In Global Political Economy: Small Islands And The Case Of The Eu And Oecd Harmful Tax Competition Initiatives, Richard Woodward

Articles

This article investigates how recent attempts by the European Union (EU) and the Organisation for Economic Co-operation and Development (OECD) to clamp down on harmful tax competition will affect small island economies with offshore financial centres (OFCs). It argues that although there are legitimate concerns about the initiatives, the likelihood that small island OFCs will disappear is remote. A confluence of factors have forced the EU and OECD to dilute their original proposals to the extent that while some marginal OFCs may be driven out of existence, more sophisticated OFCs will be unharmed and may even benefit from this supposed …

The Elimination Of The Federal Tax Deductibility Of State And Local Taxes: Possible Effects On State And Local Tax Structures, John M. Foster

MPA/MPP/MPFM Capstone Projects

Through the use of intermediaries such as elected officials and hired advocates, people choose the level of resources that will be used for public goods and services, as well as the manner in which those resources will be used. They also decide how these goods and services will be financed. The extent to which governments utilize taxes on income, wealth, and consumption is guided by considerations of political factors, equity, administrative costs, revenue adequacy, and the effects of the tax system on allocative efficiency. Incentives that are embedded in the federal tax system may also influence state and local tax …

Tax Reform: What Are The Options?, James Simeone, Ruth Ann Friedberg, Diego Mendez-Carbajo

Roundtables

This roundtable used the claim-objection-rejoinder format to address the strengths and weaknesses of tax policy reforms brought before the public in 2005. Using a liberal arts format, the discussion aimed to help citizens understand the principles, values and tradeoffs at stake in the tax policy debate.

"Offshore” Or “Shorn Off”: The Oecd’S Harmful Tax Competition Initiative And Development In Small Island Economies, Richard Woodward

Books/Book Chapters

The difficulties of developing and executing a sustainable development program in Small Island Economies (SIEs) are well documented. Comparatively small domestic markets, remote export markets, a dearth of natural and human resources, susceptibility to environmental change and natural disasters, plus limitations on the state’s capacity to govern economic activity have narrowed the range of feasible development strategies resulting in a reliance on sectors vulnerable to the vicissitudes of the global economy.

Land Value Taxation: Persuasive Theory But Practically Difficult, Tom Dunne

Articles

While the theoretical case for Land Value Taxation is regarded as being very persuasive, most people looking closely at the idea form the view that the practical difficulties of introducing it into an established modern economy are compelling. Nevertheless, in Europe and America the ideas put forward by George continue to influence many people discussing issues around land use planning, urban development and methods of funding infrastructure and local government.

Development Forecast: The Fiscal Effects On Property Taxes And Occupational License Fees And The Social Costs And Benefits Of Urban Redevelopment In Lexington-Fayette County, Kentucky, Tony J. Stoeppel

MPA/MPP/MPFM Capstone Projects

Real estate development has effects on the publicly recorded property valuation of a parcel. The extent of the relationship in Lexington-Fayette County demands further analysis. Redevelopment also has unintended social costs the public may be forced to bear. This study presents estimates of the fiscal impact a redevelopment project has on the local tax revenues. The study population used for analysis includes redevelopment projects completed within the last six years in the downtown Lexington area. The research attempts to formalize a relationship among the incremental change in the publicly recorded value, the cost of redevelopment, and the distance the project …

Review And Appraisal Of 2003 Budget And Economic Performance., Ige S. Cyril

Bullion

The first set of problems in realizing the benefits of a national budget in Nigeria, the 2003 Federal Government Budget in particular, is the delay in formulation and presentation to the National Assembly. This paper examines various definitions of the national budget as understood by some of the important stakeholder. It discusses budget implementation and management, budget 2003 and the people, strengthening programming as a basis of budgeting for development, and co-ordination of economic management in 2003. Finally, the study concludes that NEEDS is a welcome idea but its goals will prove difficult to achieve because of the flaw in …

Fiscal Policy Thrust Of The 2004 Budget., Odoko F. O

Bullion

The budget is an important tool of economic management. Usually, it presents estimates of Government revenue and expenditure for a fiscal year. The objective of this paper is to provide an overview of the fiscal policy measures in the 2004 Budget. This paper contains the background to the budget, the policy thrust and the key parameters. It highlights the revenue and expenditure estimates and identifies the policy priorities and prospects. Finally, a good monetary policy is expected to achieve macro economic stability and a sound financial sector if effectively implemented and barring fiscal shocks. Overall, socio-political stability and fiscal discipline …

Keynote Address At The Policy Seminar On The 2004 Federal Government Budget., Sanusi J. O Dr.

Bullion

This is a Keynote address delivered at the Policy Seminar on the 2004 Federal Government Budget, jointly organized by the Central Bank of Nigeria (CBN), the National Centre for Economic Management and Administration (NCEMA) and the Nigerian Economic Society (NES). The seminar is the ninth in the series of the inter-agency collaborative effort, aimed at providing a forum for major stake-holders in the economy to critically analyse and evaluate the adequacy, or otherwise of the current fiscal and monetary policy measures, in achieving the central objectives of the Federal Government.

Legislative-Executive Relations And The Budgetary Process In Nigeria: An Evaluation Of The 1999 Constitution., S.C. Rapu

CBN Occasional Papers

Since the transition to civilian rule in May 29, 1999, the country has witnessed conflicts between the legislature and the executive over budget matters. These conflicts are not only restricted to the federal level but also a common phenomenon at the state government level. This paper discussed the poor relationship over the budget matters and made suggestions on how to improve the process. The paper surveyed the literature on the legal framework of the budgetary process in several countries. Thereafter, the paper examined the legal framework for the budgetary process in Nigeria as well as the issues involved. The paper …

Model State Land Use Legislation For New England, New England Environmental Finance Center, Muskie School Of Public Service

Legislation

Sprawl is neither the ordained nor the inevitable outcome upon the New England landscape. A coordinated response to sprawl by the public and private sectors is possible, and could dramatically improve land use patterns and reduce the cost of local government. For the New England states, such a response would include, among other elements, legislation to eliminate existing gaps in the land use laws of each state – gaps that presently encourage or sanction sprawling development. It would also include incentives for municipalities to think beyond their borders and to act with greater efficiency and effect. It is the purpose …

Social Security Reform: An Expository Report, Nathan J. Voss

Honors Capstones

Capstone submitted as a graduation requirement for the BSU Honors Program.

Guiding Growth: A Survey Of Tax Incentives, New England Environmental Finance Center, Muskie School Of Public Service

Legislation

Current development patterns and increased tax pressures in local municipalities combine to harm both Maine’s natural resources and its quality of life. Previous initiatives such as the implementation of zoning laws did not fully result in the desired outcomes. Zoning laws were often too flexible and often did not resist market and political pressures to change zoning regulations to allow development with possible economic growth. A sound taxation system or fee structure may be the solution to slow down development in natural areas and direct it towards areas appropriate for growth.

To protect Maine’s natural resources more successfully from future …

The State Of The Region: Hampton Roads 2002, James V. Koch, Vinod Agarwal, John R. Broderick, Rev. Dr. James Cobb, Chris Colburn, Ellie Costulis, Steve Daniel, Tatiana Isakovski, Sharon Lomax, Trish Manthey, Deborah Miller, Gilbert Yochum, Grace Wu

Economics Faculty Books

This is Old Dominion University's third annual "State of the Region" report.While it represents the work of many individuals connected in various ways to the university, the report does not constitute an official viewpoint of the University, or it's president, Dr. Roseann Runte.

Our "State of the Region" reports maintain the modest goal of making Hampton Roads an even better place to live. We are proud of our region's many successes, but realize that it is possible to improve the region's performance. Yet, in order to improve our performance, we must have accurate information about "where we are" and a …

A History Of Revenue Forecasts, Mark Rider

Faculty Articles

Feenberg et al. (1989) apply a simple regression-based method to test the rationality of state revenue forecasts. Using the same regression-based methodology, we test the rationality of federal revenue forecasts for fiscal year 1802 through 2001. We find that Treasury forecasts of federal revenues satisfy the conditions of weak rationality.

State Enterprise Zone Programs: Have They Worked?, Alan H. Peters, Peter S. Fisher

Upjohn Press

Peters and Fisher evaluate 75 EZs located in 13 states to gain an understanding of the overall effectiveness of state enterprise zones. Faced with a paucity of data on EZs that could be used in standard economic analysis, the authors employ a hypothetical firm model in which they apply various EZ and non-EZ incentives to financial statements created for a set of "typical" firms. Observing the impacts of both types of incentives on firms' financial statements allow Peters and Fisher to predict the firms' resulting behavior. Between these findings and the data accumulated from actual EZs, they are able to …

Sales And Use Taxes In Clark County And Potential Implications Of The Internet Sales Tax Moratorium, Patrick Timothy Collins Smith

UNLV Theses, Dissertations, Professional Papers, and Capstones

Sales taxes have been a much-depended on source of revenue for local governments since the early part of the 1900’s. Southern Nevada local governments rely relatively heavily on sales and use taxes for a source of income. In 1998, the United States Congress passed an Act that imposed a moratorium on Internet sales tax collection until October 2001. With the explosive growth in Internet sales, the issue of the failed collection of an Internet sales tax has come to the forefront of local government finance discussions.