Growth Effects Of Income And Consumption Taxes

Author : Mr.Gian Milesi-Ferretti,Nouriel Roubini
Publisher : International Monetary Fund
Page : 38 pages
File Size : 52,8 Mb
Release : 1995-07-01
Category : Business & Economics
ISBN : 9781451848236

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Growth Effects of Income and Consumption Taxes by Mr.Gian Milesi-Ferretti,Nouriel Roubini Pdf

The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital. The different channels through which these taxes affect economic growth are discussed, and it is shown that in general the taxation of factor incomes (human and physical capital) is growth-reducing. The effects of consumption taxation on growth depend crucially on the elasticity of labor supply, and therefore on the specification of the leisure activity. The paper also derives some implications for the optimal intertemporal choice of tax instruments.

Author : Mr.Gian Milesi-Ferretti,Mr.Enrique G. Mendoza,Patrick K. Asea
Publisher : International Monetary Fund
Page : 42 pages
File Size : 54,9 Mb
Release : 1995-08-01
Category : Business & Economics
ISBN : 9781451955798

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Do Taxes Matter for Long-Run Growth? Harberger's Superneutrality Conjecture by Mr.Gian Milesi-Ferretti,Mr.Enrique G. Mendoza,Patrick K. Asea Pdf

Harberger’s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects investment and growth, in practice growth effects of taxation are negligible. This paper provides evidence in support of this view by testing the predictions of endogenous growth models driven by human capital accumulation. The theoretical analysis highlights implications of different taxes for growth and investment in these models. The empirical work is based on cross-country regressions and numerical simulations, using a new methodology for estimating aggregate effective tax rates. Results show significant investment effects from income and consumption taxes that are consistent with small growth effects. The results are robust to the introduction of other growth determinants.

Author : Bin Xu
Publisher : International Monetary Fund
Page : 40 pages
File Size : 55,7 Mb
Release : 1994-03-01
Category : Business & Economics
ISBN : 9781451977554

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Tax Policy Implications in Endogenous Growth Models by Bin Xu Pdf

This paper surveys the tax policy implications in various endogenous growth models. The focus is on the long-run growth effects of income, consumption, and investment taxation in models whose engine of growth is the accumulation of human capital, technological innovation, and/or public infrastructure. The results depend on model specifications. This paper also reviews quantitative results from cross-country regressions and simulations, and indicates some statistical and methodological problems to which they are subject. Tax policy implications in endogenous growth models both with tax policy endogenously determined by a political process and with international capital mobility are also discussed.

Author : W. A. Vermeend,Rick van der Ploeg,Frederick van der Ploeg,Jan Willem Timmer
Publisher : Edward Elgar Publishing
Page : 520 pages
File Size : 43,7 Mb
Release : 2008
Category : Business & Economics
ISBN : STANFORD:36105131799632

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Taxes and the Economy by W. A. Vermeend,Rick van der Ploeg,Frederick van der Ploeg,Jan Willem Timmer Pdf

Since World War II OECD countries have increasingly used taxation to achieve a variety of economic policy objectives of which stimulating economic activity and employment are usually the most important. The tax system is also used to create a favourable climate for investment, to spur business innovation and to promote long-term sustainable environmental policy. More recently, policies have focused on stimulating child care and encouraging citizens to work for longer. This book discusses the effects of taxation on the economy and its development. It aims to provide the reader with the necessary empirical information, while at the same time presenting an overview of the latest theory. In doing so, it touches on many relevant policy issues.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 27 pages
File Size : 52,8 Mb
Release : 1988-03-09
Category : Business & Economics
ISBN : 9781451920888

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The Relative Impact of Income and Consumption Taxes by International Monetary Fund Pdf

This paper examines the possibility of ascertaining the welfare changes that occur when a consumption tax replaces an equal-yield income tax. It finds that those with saving/income ratios greater than the social saving/income ratio under the income tax will surely benefit and those with ratios smaller than the social rate under the consumption tax will surely be harmed. These conditions are in each case sufficient to guarantee these results—but not necessary. Some can be better off and others worse off without these conditions holding. It is thus theoretically impossible to predict the welfare effects on many taxpayers of the tax shift from the observable data.

Author : Andrew W. Dick,Charles Engel,Daniel S. Hamermesh,David Genesove,Frank J. Chaloupka,Gian Maria Milesi-Ferretti,Nouriel Roubini,Robert P. Flood,Aaron S. Edlin,Daniel T. Slesnick,Henry Wechsler,Peter M. Garber,Vittorio Grilli,Wallace Patrick Mullin,Charles Frederick Kramer
Publisher : Unknown
Page : 12 pages
File Size : 50,8 Mb
Release : 1995
Category : Alcoholism
ISBN : OCLC:33805835

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Social Networks, Learning, and Flexibility by Andrew W. Dick,Charles Engel,Daniel S. Hamermesh,David Genesove,Frank J. Chaloupka,Gian Maria Milesi-Ferretti,Nouriel Roubini,Robert P. Flood,Aaron S. Edlin,Daniel T. Slesnick,Henry Wechsler,Peter M. Garber,Vittorio Grilli,Wallace Patrick Mullin,Charles Frederick Kramer Pdf

Author : Mrs.Sandra V Lizarazo Ruiz,Adrian Peralta-Alva,Mr.Damien Puy
Publisher : International Monetary Fund
Page : 32 pages
File Size : 40,5 Mb
Release : 2017-09-01
Category : Business & Economics
ISBN : 9781484318225

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Macroeconomic and Distributional Effects of Personal Income Tax Reforms by Mrs.Sandra V Lizarazo Ruiz,Adrian Peralta-Alva,Mr.Damien Puy Pdf

This paper assesses the macroeconomic and distributional impact of personal income tax (PIT) reforms in the U.S. drawing on a multi-sector heterogenous agents model in which consumers have non-homothetic preferences and sectors differ in terms of their relative labor and skill intensity. The model is calibrated to key characteristics of the US economy. We find that (i) PIT cuts stimulate growth but the supply side effects are never large enough to offset the revenue loss from lower marginal tax rates; (ii) PIT cuts do “trickle-down” the income distribution: tax cuts stimulate demand for non-tradable services which raise the wages and employment prospects of low-skilled workers even if the tax cut is not directly incident on them; (iii) A revenue neutral tax plan that reduces PIT for middle-income groups, raises the consumption tax, and expands the Earned Income Tax Credit can have modestly positive effects on growth while reducing income polarization; (iv) The growth effects from lower income taxes are concentrated in non-tradable service sectors although the increased demand for tradable goods generate positive spillovers to other countries; (v) Tax cuts targeted to higher income groups have a stronger growth impact than tax cuts for middle income households but significantly worsen income polarization, even after taking into account trickle-down effects and an expansion of the Earned Income Tax Credit.

Author : Jason Clemens
Publisher : The Fraser Institute
Page : 208 pages
File Size : 40,5 Mb
Release : 2008
Category : Fiscal policy
ISBN : 9780889752290

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The Impact and Cost of Taxation in Canada by Jason Clemens Pdf

"There is increasing interest in, and recognition of, the need for both tax reduction and tax reform in Canada. This book provides the rationale for tax reform and a road map for that reform. The book includes 5 chapters from leading experts in the field and provides a persuasive, compelling case for tax reform in Canada." "The Impact of Taxes on Economic Behavior by Milagros Palacios and Kumi Harischandra offers a broad overview of the incentive effects associated with taxes that affect our decisions to work more, to save, to invest, and to engage in entrepreneurial activity." "Compliance and Administrative Costs of Taxation in Canada by renowned University of Montreal economics professor Francois Vaillancourt and Jason Clemens provides readers with an understanding of the vast costs associated with administering, and complying with, our current tax system."--BOOK JACKET.

Author : Organisation for Economic Co-operation and Development. Committee on Fiscal Affairs
Publisher : Organisation for Economic Co-operation and Development ; [Washington, D.C. : available from OECD Publications and Information Center
Page : 72 pages
File Size : 43,9 Mb
Release : 1981
Category : Business & Economics
ISBN : UOM:39015035042228

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The Impact of Consumption Taxes at Different Income Levels by Organisation for Economic Co-operation and Development. Committee on Fiscal Affairs Pdf

Examination of the distributional aspects of the taxation of purchases of goods and services for consumption (tax on value added and excises) in Belgium, Finland, France, Germany, the Netherlands, Norway and the UK.

Author : W.Bartley Hildreth
Publisher : Routledge
Page : 1026 pages
File Size : 44,7 Mb
Release : 2019-07-16
Category : Political Science
ISBN : 9781351564274

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Handbook on Taxation by W.Bartley Hildreth Pdf

A groundbreaking reference, this book provides a comprehensive review of tax policy from political, legal, constitutional, administrative, and economic perspectives. A collection of writings from over 45 prominent tax experts, it charts the influence of taxation on economic activity and economic behavior. Featuring over 2400 references, tables, equations, and drawings, the book describes how taxes affect individual and business behavior, shows how taxes operate as work and investment incentives, explains how tax structures impact different income groups, weighs the balanced use of sales, property, and personal income taxes, traces the influence of recent tax changes, and more.

Author : Michael A. Schuyler
Publisher : Unknown
Page : 166 pages
File Size : 54,8 Mb
Release : 1984
Category : Business & Economics
ISBN : STANFORD:36105043892426

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Consumption Taxes by Michael A. Schuyler Pdf

Part of the Fiscal Series published by Institute for Research on the Economics of Taxation. A discussion on the effect of consumption taxes and their effect on income tax.

Author : Mr.Santiago Acosta Ormaechea,Atsuyoshi Morozumi
Publisher : International Monetary Fund
Page : 38 pages
File Size : 43,8 Mb
Release : 2019-05-07
Category : Business & Economics
ISBN : 9781498314183

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The Value Added Tax and Growth: Design Matters by Mr.Santiago Acosta Ormaechea,Atsuyoshi Morozumi Pdf

Does the design of a tax matter for growth? Assembling a novel dataset for 30 OECD countries over the 1970-2016 period, this paper examines whether the value added tax (VAT) may have different effects on long-run growth depending on whether it is raised through the standard rate or through C-efficiency (a measure of the departure of the VAT from a perfectly enforced tax levied at a single rate on all consumption). Our key findings are twofold. First, for a given total tax revenue, a rise in the VAT, financed by a fall in income taxes, promotes growth only when the VAT is raised through C-efficiency. Second, for a given VAT revenue, a rise in Cefficiency, offset by a fall in the standard rate, also promotes growth. The implication is thus that in OECD countries broadening the VAT base through fewer reduced rates and exemptions is more conducive to higher long-run growth than a rise in the standard rate.

Author : Mr.Santiago Acosta Ormaechea,Ms.Jiae Yoo
Publisher : International Monetary Fund
Page : 36 pages
File Size : 50,9 Mb
Release : 2012-10-25
Category : Business & Economics
ISBN : 9781616355678

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Tax Composition and Growth by Mr.Santiago Acosta Ormaechea,Ms.Jiae Yoo Pdf

We investigate the relation between changes in tax composition and long-run economic growth using a new dataset covering a broad cross-section of countries with different income levels. We specifically consider 69 countries with at least 20 years of observations on total tax revenue during the period 1970-2009—21 high-income, 23 middle-income and 25 low-income countries. To our knowledge this is the most comprehensive and up-to-date dataset on tax composition and growth. We find that increasing income taxes while reducing consumption and property taxes is associated with slower growth over the long run. We also find that: (1) among income taxes, social security contributions and personal income taxes have a stronger negative association with growth than corporate income taxes; (2) a shift from income taxes to property taxes has a strong positive association with growth; and (3) a reduction in income taxes while increasing value added and sales taxes is also associated with faster growth.

Author : OECD
Publisher : OECD Publishing
Page : 154 pages
File Size : 45,9 Mb
Release : 2010-11-03
Category : Electronic
ISBN : 9789264091085

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OECD Tax Policy Studies Tax Policy Reform and Economic Growth by OECD Pdf

This report investigates how tax structures can best be designed to support GDP per capita growth.

Author : Nouriel Roubini,Gian Maria Milesi-Ferretti
Publisher : Unknown
Page : 48 pages
File Size : 54,6 Mb
Release : 1994
Category : Capital levy
ISBN : UCSD:31822018893727

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Taxation and Endogenous Growth in Open Economies by Nouriel Roubini,Gian Maria Milesi-Ferretti Pdf

This paper examines the effects of taxation of human capital, physical capital and foreign assets in a multi-sector model of endogenous growth. It is shown that in general the growth rate is reduced by taxes on capital and labor (human capital) income. When the government faces no borrowing constraints and is able to commit to a given set of present and future taxes, it is shown that the optimal tax plan involves high taxation of both capital and labor in the short run. This allows the government to accumulate sufficient assets to finance spending without any recourse to distortionary taxation in the long run. When restrictions to government borrowing and lending are imposed, the model implies that human and physical capital should be taxed similarly.