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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."

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Measuring inequality at the zip code or county level in the United States?

I am trying to calculate a statistic for inequality at the zip code or county level in order to merge with another data set. I am using IRS SOI data, but the data given is returns by AGI bin (i.e., 1-...
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Which countries impose family income taxation?

I'm looking for a comprehensive overview of international income tax systems (OECD countries would be sufficient), showing which countries apply some sort of family taxation, i.e. married partners ...
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Would this alternative monetary and tax system work?

Consider a nation whose money is entirely digital (like Bitcoin), but centralized (unlike Bitcoin). Furthermore, the total money supply is fixed, i.e. money cannot be created nor destroyed. To be ...
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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 ...
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Simultaneous consumption tax and subsidy

Suppose the government introduces a simultaneous tax and subsidy on a consumption good, which is produced under perfect competition. If the tax and the subsidy are equal, then there will be no ...
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How did “excess liquidity” in the US contribute to the 2008 crash?

Here I'm using "excess liquidity" not in reference to monetary policy, but to the concentration of capital at the top in regard to private citizens. This excess liquidity, for which the tax cuts in ...
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The effect of structural unemployment on revenue from value added tax

Bill Gates and European countries have shown favor for consumption/VAT taxes. The arguments given by proponents are often something along the lines that "we know how to tax certain items more than ...
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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 ...
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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 ...
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Is Universal Basic Income compatible with free international trade?

If one country introduces UBI, what prevents other countries from taking advantage of that and supplying cheaper (no need to finance a UBI scheme!) goods to the original country and outcompeting the ...
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Meaning of Transversality Conditions in Ramsey Problem

I'm working on a Ramsey problem for taxation, and am a little confused on the meaning/intuition behind the transversality conditions below: $\lim_{T \to \infty} \lambda_T b_{T+1} = 0$ $\lim_{T \to ...
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Hypothetical question: Percentage change in Federal income tax revenue in United States if Gini Index = 0?

Gini index = 0 refers to an economy where gross income has been redistributed so that all income earners in the United States received the same income, equal to the most current measure of the mean (...
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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 ...
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Why do higher real interest rates increase land value?

I'm using this equation to calculate market value of land based on the levied land value tax: y = market land value x = land value tax r = real interest rate a = real time-independent land value i = ...
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How did the Joint Committee on Taxation calculate the distribution of individual income tax rate increases for the Tax Cuts and Jobs Act of 2017

According to the Joint Committee on Taxation's JCX-68-17 Distributional Effects Of The Conference Agreement For H.R.1, The "Tax Cuts And Jobs Act", there will be a significant increase in income tax ...
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Which model produces the correct revenue-maximizing rate?

Model 1: The tax rate $\tau$ which maximizes tax revenue equals $\frac{1}{1 + a\epsilon}$ where $\epsilon$ is the elasticity of how taxable income responds to changes in the tax rate across and $a$ ...
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What would be the effect on a tax on business cash flow instead of on income?

This came up in a pub discussion. (yes, it was good beer...) Suppose that instead of taxing companies on the net income they make, they were taxed at a much lower rate on cash flow, with no ...
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Why does everything get more expensive as cities grow in density/size?

I have long wondered why groceries, rent, and especially cially taxes increase as cities get larger since the cost per capita goes down, at least according to everything I've read including a summary ...
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The introduction of Single Transaction Tax would help to curb out Tax Evasion & Black Money?

The Arthakranti (a NGO working on Economic Reform in India) suggests the proposal of Tax Reform. In the proposal they suggest that All Taxes and Duties of Central ,State and Local body Government ...
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Falling oil prices but no benefits passed on to the end user; government's strategy

Even though the oil prices have fallen rapidly in the recent years, the cost of petroleum products hasn't gone down in India. Apart from raising more revenue, what are the other benefits the ...
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“Wealth tax” on illiquid assets, how would people pay

In the idea of a wealth tax, or even for properties taxes, many times assets are illiquid. What mechanisms can be introduced to promote compliance and ensure the revenue collection goals of the taxing ...
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Do across-the-board tax breaks increase wealth if wealth is relative?

So, as I understand it, the value of one's money is in its purchasing power, and its purchasing power is related to its amount relative to others. That is to say: Earning 25k a year in a country ...
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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 ...
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How important is “second best optimum” for the modelling and formulation of policy advice?

The standard formulation of second best theory is: if there is introduced into a general equilibrium system a constraint which prevents the attainment of one of the Paretian conditions, the ...
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if it isn't specified who pays the tax, can an indirect tax shift the demand curve down?

Just a little unsure as using the 'wedge analysis' gives the same results assuming supply and demand are the same elasticity
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Is it better to tax only on what people spend?

I been recently pondering what might be the best tax system. I kept in mind that this tax system should have advantages for state, companies and for all people. Not people only. What I came up with ...
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If US capital income taxation were eliminated, which ordinary income tax brackets would be equally progressive?

This question only considers federal taxes in the United States. Also, by "capital income" I am including dividends, interest, capital gains, corporate incomes and estates. The Chamley-Judd result ...
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Consumption Tax Effect

A country imposed a value-added tax of 7% on the consumption of the majority of its goods and services. Said government has a large and relentless govt budget ...
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calculating deadweight loss with wastage of tax

Consider an economy with 1000 identical consumers, each with a utility function given by $2\sqrt(x) + m $ , and 10 identical firms, each with a cost function given by $c(q)=aq$ , where $a$ is a ...
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Can companies fusion allow for avoiding VAT overhead?

Suppose there are two companies, one of which buys the second company's product as a resource to generate income. Now, that transaction would often require a payment of VAT tax (I assume there are ...
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How does stamp duty tax in Australia affect demand and supply of housing?

How would introduction of a stamp duty tax in Australia affect the demand and supply of housing? Would it shift the supply OR demand curve (and in which direction)? How would the market price change (...
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Elasticity of Substitution and Taxation

So I am trying to understand the impact of the elasticity of substitution in terms of taxation. I am carrying this out for the U.S. by firstly estimating a two-input CES production function. Chirinko (...
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What are the growth rates projected in the pending US Tax bill? (2017)

I haven't had time to get very granular on the pending US tax reform bill, but during the debates and drafting process, I was hearing some pretty big numbers being thrown around in terms of growth. (...
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By which mechanism was the Isle of Man used for fiscal optimization?

The Isle of Man is one of the territories that appears in the "Paradise Papers" scandal. Articles say that the island's situation makes it very convenient for rich people that are trying to dodge tax. ...
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Can you tax profit at the consumer?

Is it technologically feasible for companies who sell to more than one country to split its consumers by resident status and then pay the tax on the profit from the sales to the respective governments?...
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VAT changes in India

While I know that VAT was introduced in the form of modvat in 2005 and then modified to cenvat but does anybody the rates and the change over the years. IIRC, it started with 1 percent in 2005 and now ...
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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. ...
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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 ...
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How much extra Riccardian Rent can be collected by raising the land value tax from 1% to 100%?

Henry George proved that landowners are allowed to extract Rent from the land they own. He, and Georgists in general, argue that the government should levy a 100% land value tax to collect all of this ...
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Stiglitz has suggested that there is a global tax regime of twenty per cent to avoid arbitrage - what would it take to effect this?

Corporations/Multi-nationals are able to avoid their tax obligations by arbitraging across tax jurisdictions. Stiglitz has suggested a global tax rate of twenty per cent to close this particular loop-...
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Controlling capital flows across borders through accounting for tax paid

Is it possible for a state to limit offshore leakages by creating a sort of membrane around a nation, and stating that any money that moves out internationally, must be shown to have been taxed within ...