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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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 ...
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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 ...
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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 ...
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Maximized tax revenue & foreign labor

I'm dealing with a tricky assignment, and I have no idea of where to begin. Person 1 lives in Denmark and has a utility function given by, $$(1) \ \ u(c,l)=c-\frac{\eta}{\eta+1}(24-l)^{\frac{\eta+1}{\...
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Optimality of Zero Capital Taxation

The Chamley-Judd result of zero optimal capital taxation says that 0 capital taxation are required in order to maximize welfare at the steady state. The result is 30 years old. Still assuming that ...
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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 ...
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552 views

How can a country ensure its national currency is used by its citizens?

I am wondering how countries are able to force everyone to use its own currency, instead of some external currency (like the U.S. dollar or Bitcoin or cookies or something else not under government ...
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The relationship between gross profit and tax

I tried to do following question but I am not sure about my solution. Please tell me your opinions Since gross profit is strictly concave, I can say that $R’’(y)-C’’(y) <0$ Now I maximize the net ...
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992 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 ...
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82 views

What would the consequences of an economy-wide 500EUR/tonne carbon tax be?

I recently calculated that Finnish car owners effectively pay 500 EUR per every tonne of carbon dioxide emitted from the tailpipe of a car. This payment is caused by three taxes that are in practice ...
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85 views

Is loss in tax revenue a negative externality?

I was thinking about how online gambling could cause numerous governments to face a reduction in tax revenue from conventional gambling, upon which taxes do apply in most countries. If governments ...
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135 views

What is the effect of redirecting government tax intake to a consumer retirement saving incentive?

In New Zealand we have a retirement saving scheme called Kiwisaver. The scheme is opt in. If a consumer opts in, they must save at least 3% of their income, which they can't access until retirement. ...
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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 ...
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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 ...
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109 views

Dead Weight Loss (Tax)

Problem Given demand $D(p)=A-ap$, and $A,a>0$ and a fixed price $0<p_1<A/a$ by some company. My solution so far CS is $CS=\int_{p}^{A/a}D(p)dp=\int_{p}^{A/a}(A-ap)dp=\frac{1}{2a}(A-ap)^2=\...
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Do all taxes come out of rents (ATCOR)?

Mason Gaffney (2009) coined the term ATCOR (all taxes come out of rents) for his finding that taxes depress land rents. The meaning and relevance of ATCOR is that when we lower other taxes, the ...