Stack Exchange Network

Stack Exchange network consists of 174 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

Questions tagged [taxation]

Refers to compulsory or coercive money collection by a levying authority, usually a government. The term "taxation" applies to all types of involuntary levies, from income to capital gains to estate taxes. Though taxation can be a noun or verb, it is usually referred to as an act; the resulting revenue is usually called "taxes."

4
votes
2answers
89 views

Pushing taxes - economic etymology

Frequently a description that is clear in the mind of its author is not as clear to a reader. It is even worse when the reader finds the description clear but actually misunderstands the intention of ...
5
votes
3answers
3k views

Is my logic on taxation for this question legit?

At Fenway Park, home of the Boston Red Sox, seating is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue, the City of Boston ...
6
votes
1answer
739 views

Are sales taxes regressive?

There are competing definitions of regressive taxes out there: On Wikipedia: A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation ...
3
votes
2answers
66 views

Can Apple use its off-shore cash to do Apple stock buy-backs tax free?

It is well established that Apple holds $181B in cash overseas. This appears to be to avoid US Taxes. Apple has been doing significant stock buy-backs. My question is: Can Apple use its off-shore ...
5
votes
1answer
88 views

Are there economic policies that help countries fight corruption?

Are there particular taxes or subsidies or public goods that a country's economic authority could implement to help in the fight against corruption? While the rule of law seems to be the first order ...
5
votes
2answers
192 views

Is information technology going to turn most “common goods” into private goods?

Common goods, (not public) are so because they are non-excludable and rival. Often this reflects the impracticality of excluding some users, rather than an absolute impossibility. For example, a park ...
0
votes
1answer
48 views

Does the Tax Allowance Benefit Everyone (Regardless of Their Income)? [closed]

Note: This question is in the context of the UK and its policies. I understand that if your income is below the tax allowance (£11,000), you pay no income tax. However, I think my textbook is also ...
7
votes
3answers
562 views

How does lowering a corporate tax rate benefit a nation?

When governments talk about about lowering corporate tax rates they claim there is benefit in one form or another. The problem is the mechanism of how the benefit can work is never explained. The ...
1
vote
0answers
52 views

VAT vs. Income tax - How their effect varies

Was wondering how the effect of VAT (indirect taxes) differs from the effect of income tax (direct taxes), in terms of their impact on the 4 marco objectives (unemployment, inflation, balance of ...
5
votes
3answers
2k views

How are shell companies used for tax evasion?

The recent release of leaked documents on Mossack Fonseca has information on corporations and individuals using the firm's services for, among other things, tax evasion: The massive security breach ...
1
vote
1answer
98 views

What are all the countries that have a value added tax? [closed]

I'm a web developer (not an economist) and i'm working on a program that deals with value-added tax (VAT), maybe it is a stupid question but, is the value added tax obligatory? I just want to know if ...
1
vote
1answer
47 views

Why does decrease in fixed taxes accompanied by a decrease in Government Spending of the same amount will decrease GDP?

I personally don't agree because change in GDP caused by decreased in fixed taxes should be $\triangle$ fixed taxes $ \times \frac{-b}{1-MPE}$(fix tax multiplier), which turns out to be a positive ...
3
votes
0answers
35 views

Sanders' Plan to tie health care spending as a percentage of income [closed]

So Bernie Sanders' plan considers healthcare as: Bernie’s plan will cover the entire continuum of health care, from inpatient to outpatient care; preventive to emergency care; primary care to ...
4
votes
3answers
253 views

What would be the economic impact of the “fair tax” plan?

So I read about an interesting proposal about completely replacing income tax with a heavy national sales tax of about 30% (23% inclusive to compare to income tax). I was thinking about what the ...
3
votes
4answers
347 views

What are taxes for since law forbids printing of money?

This question bothers me for a long time: why government keeps up with the taxes instead of with printing money? This would decrease its operating costs, simplify law and generally raise comfort of ...
2
votes
1answer
163 views

Tax Incidence and distribution

Although the tax incidence is generally dependent on the nature of the elasticity of the demand or supply, in special scenarios can the producer take up the complete burden of the tax so that the ...
5
votes
0answers
178 views

Arguments against inheritance tax

One of the arguments against inheritance tax is that it lowers the incentive to work for those close to retirement who have earnt enough money to be comfortable in old age. How much is this offset ...
0
votes
0answers
34 views

More privileges to the rich and less rights for the poor in the Great Depression?

I would like to know if in the Great Depression (1930s) the government of US and other Western governments increased the taxes for the poor or if they reduced the incomes and the rights of the poor. ...
8
votes
4answers
698 views

How is Singapore able to provide first-world public services, given its low income tax rate?

Singapore has a relatively low personal income tax rate. Somebody who earns $80,000 after deductions only pay 3,350 in taxes, or about 4% effective rate (see 2012-2016 tax table). 80,000 is already ...
2
votes
1answer
63 views

Two good sources (books preferably) that show the leading and most reasonable arguments for/against “trickle down economics”?

I was raised by fairly conservative parents and throughout my childhood have had the impression that Reagan was the standard candle to which all policy should be held to and in particular Reaganomics ...
4
votes
2answers
7k views

What is the difference between VAT and corporate tax

Many times I hear that VAT (value added tax) is a "good" tax, while corporate tax is a "bad" tax/ However, both taxes take a cut from the difference between the income of a company and its expenses, ...
14
votes
7answers
2k views

Economic policies to decrease obesity (would they be effective?)

According to the Center for Disease Control and Prevention, approximately 35% of adults in the United States are obese. I have done much research on the topic of economic policies to reduce obesity (I ...
0
votes
1answer
19 views

Data source for average effective personal income tax rate?

Anyone know a source for the average effective personal income tax rate for the US. By state also would be great. Definition: average effective income tax rate = (Total income tax collected)/(Total ...
3
votes
2answers
340 views

Why are there estate taxes after the owner passes away?

Isn't it unfair for estates to be taxed after death? The person who bequeathed the estate probably purchased it with after tax money, so wouldn't it then be taxed twice? What is the purpose of the tax ...
3
votes
2answers
73 views

Why is the Supply of Labour More Elastic in a Single Province/State then it is in the Country as a Whole?

Apparently, the federal government has a greater ability than provincial government to increase tax revenues by raising tax rates because the supply of labour is more elastic in a single province than ...
1
vote
2answers
1k views

Why is it said that Sweden has a regressive income tax system?

Quoting from Wikipedia Sweden has a progressive income tax, the rates for 2014 are as follows: 0% from 0 kr to 18,800 kr (~0 – 2,690 USD) Circa 31% (ca. 7% county and 24% municipality tax):...
4
votes
1answer
2k views

Price Producers Receive as a Result of Indirect Taxes

In my economics class, we were introduced to the idea that if the government imposes an indirect tax on a good, the price consumers have to pay increases, but along with this increase in price for ...
4
votes
1answer
65 views

Do tax cuts to the rich lower interest rates?

The rationale for giving tax cuts to the income brackets is that this money is then invested in new businesses which increases jobs. If the saved money is being saved/invested instead of being spent,...
2
votes
1answer
51k views

How Do I Calculate the After-Tax Equilibrium Quantity of a Supply and Demand Graph? [closed]

Suppose the supply of a good is given by the equation $Q_S = 360*P_S - 720$. And the demand for a good is given by $Q_D = 960 - 120*P_D$. The government decides to levy a tax of \$2 per unit on the ...
3
votes
2answers
75 views

Impact of a reduction of distortions in a flat consumption tax

I ask about the survey results of some prominent Australian economists shown here (Which is a similar Australian-centric version of the very interesting IGM Forum Surveys). The results of the survey ...
8
votes
2answers
194 views

Do welfare payments for children incentivise having children?

A common argument against safety net social welfare for people with children is that it can incentivise people without better options to have children. This could be considered a problem if it means ...
3
votes
2answers
3k views

Effect of property tax on rent

Suppose the government puts a tax on all apartment owners (e.g. a certain percentage of the apartment value), whether or not the apartment is rented. Will this tax cause an increase in rent? From an ...
3
votes
0answers
27 views

Using US foreign tax policy to offset a raise in interest rates

I am an amateur economist at best, more a person with an economic BS looking to explore data science (I will be using python). I have a theory that I want opinion on that will allow the Fed to raise ...
2
votes
0answers
28 views

Example of countries restricting companies registered in tax havens?

I would like to know which countries do not allow companies with offices registered in tax havens to operate on their territory. And if there are such countries, to what degree their restrictions ...
1
vote
1answer
56 views

Free Cash Flow to the Firm

I've got this question: Explain why the FCFF does not incorporate interest expenses and what is the potential bias in the valuation if corporate taxes exist. Now, we know that in the Free Cash ...
6
votes
1answer
51 views

What is was the total corporate Income earned in the United States in 2014?

What is was the total corporate income earned in the United States in 2014? The question may seem simple, but I have been looking for a reliable source to inform me of this figure, and I hope someone ...
4
votes
1answer
171 views

How to determine regressive tax

I have a mock-up exam that my teacher gave me and one of the questions was the following: Given these four graphs, which one represents regressive tax? I'm quite sure it's graph A, but I don't ...
0
votes
1answer
49 views

How does excessive consumption in an area decrease tax revenue?

Source: p 156, Urban Geography (2009; 3rd ed) by Michael Pacione The main ideological battle is between pro-growth and anti-growth factions. The pro-growth ideology proclaims that more ...
3
votes
0answers
106 views

Difference-in-Difference on State Sales Tax Rates

In an attempt to evaluate a potential U.S. National Sales tax rate, it was suggested on this forum before that I consider a difference-in-difference on state sales tax rates before and after they ...
3
votes
2answers
807 views

Laffer Curve Regression

I am doing some research on a potential U.S. Nationwide Sales tax. I found per-capita sales tax revenues and sales tax rates for each of the 50 states and conducted a quadratic regression on them. I ...
1
vote
1answer
51 views

(tax with) costs to first order

1) What does it mean that something (in this context the taxation) has (or doesn't) costs to first order? So, below is an excerpt from Romer's Advanced Macro (p. 598) with such a statement that I've ...
3
votes
2answers
80 views

Derivation on p.99 of Salanie, The Economics of Taxation (2nd edition)

Starting on p. 98 of Salanie's "The Economic of Taxation" (2nd edition), it explains To probe it more rigorously, let us define the utility of taxpayer $w$ when he claims to have productivity $w'$: ...
1
vote
1answer
89 views

Equality, Taxes & Business Growth

First, I'm not an economist - just a regular Joe interested in a small part of the subject. Second, I apologize if this is a better question for the 'politics' stack exchange, but I figured I might ...
4
votes
3answers
13k views

Taxes levied on sellers = Taxes levied on buyers

All page numbers refer to Principles of Microeconomics, 7 Ed, 2014, by NG Mankiw. [p 125:] Taxes levied on sellers and taxes levied on buyers are equivalent. [p 156:] ... When a tax is levied on ...
2
votes
3answers
6k views

How are workers harmed, from firms' payroll tax revenue aimed at reducing workers' tax?

Source: p 130, Question 6.5, Principles of Microeconomics, 7 Ed, 2014, by N Gregory Mankiw = (page unknown), Question 6.5, Principles of Microeconomics, 4 Ed, 2008, by N Gregory Mankiw p 125, Case ...
7
votes
1answer
2k views

What are the pros and cons of eliminating corporate taxes?

I recently heard a story on npr about economic policy changes that both liberal and conservative economists definitively agree on. Among other things, complete elimination of corporate taxes was ...
6
votes
2answers
448 views

Could a Cap-and-Trade and a Carbon Tax both work together as a system to reduce carbon emissions?

For example, the European Union currently has a Carbon Emissions Trading Scheme in progress the ETS which acts to cap the amount of carbon dioxide released by large corporations. However, let us ...
3
votes
1answer
140 views

Abenomics and the Japanese VAT tax hike

Abenomics seems to me like a straightforward and modern plan of economic reflation through monetary easing and some attempt at structural reform. While it's still early, it looks like many of the ...
0
votes
0answers
49 views

Optimal taxation and substitute commodities

Reading Ramsey's paper: a contribution to the theory of taxation. It says that when we are dealing with rival goods we look if the tax that is going to be applied leave unchanged the proportions in ...
3
votes
1answer
90 views

How does corporate income tax apply?

I am very confused regarding the corporate income tax. Please explain me the following scenario: "Teddy Bears Company" buys stocks of 1000 euro (VAT added). Then, in 1 month sells everything with ...