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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Economic effects of a Commons Capital Depository

Yanis Varoufakis (Ιωάννης Βαρουφάκης) proposes to fund a universal basic income (UBI) using dividends from a commons capital depository, essentially channeling a percentage of shares issued at an ...
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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 ...
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Is printing money to pay government expenses regressive or progressive taxation?

Lets say that the government decides to pay some of its expenses by printing money*. This (according to some schools of thought) effectively increases the inflation rate and devalues the value of the ...
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Could a tax on rental income that depends on price per square meter induce more housing with lower rents?

The background of this question is: In Germany rental income is generally taxed the same as regular business income. In some cities, there seem to be housing shortages across different incomes. Are ...
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Why is capital income taxed differently than wage income?

Why is income from capital gains taxed differently than wage income? There are perhaps historical, practical, and theoretical reasons. What are they? (As far as historical reason go, I'm asking ...
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Why is corporation tax regarded as a direct tax?

I understand that the classification of taxes is on ability-to-pay principle and is partly determined by the demand elasticity of the commodity or service. That's how I understand income tax is ...
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Which income dollar is taxed most heavily, including implicit taxation, in USA?

Income is often taxed implicitly by disqualifying deduction or government assistance. For example, if the recent proposal of "free tuition for kids of families making under \$125k" would pass the \$...
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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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Could the upper quintile pay the annual federal personal income tax for all other quintiles from their annual income?

I am wondering if, in theory, the upper quintile (20% of earners in the U.S.) could pay the annual federal tax bill for all quintiles from their annual income? I have been looking at 2013 CBO data ...
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Why do we model that higher government involvement increases output?

I have just read about the "real intertemporal" model of a macroeconomy in Macroeconomics by Stephen Williamson. I am concerned about how it says any increase in government spending, even if it is ...
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UK: Is there a list published by the government for the amount of tax paid by companies?

I know of the website for data.gov which provides data but is a publicly available list of taxes paid by publicly own corporations like Apple? If not how do we know how much is paid by them?
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Microeconomic Q on Total Revenue for Producer after Excise Tax [closed]

I had a question on how an excise tax per unit of good produced for a producer would affect total revenue for a producer of that good. The graph is that supply is perfectly elastic (horizontal) and ...
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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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:History: Industry threatening to leave if social change takes effect

With growing inequalities and salary gap, left-wing politicians are asking for social reforms in some countries (I am thinking of France). Social reform include: equal pay for women, maternity leave,...
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How can we estimate the tax incidence from a 20% tariff on Mexican goods?

President Trump has proposed a 20% tariff on some Mexican imports to the US. Is there a good way to estimate the incidence of this proposal between the Mexican producers and American consumers, as ...
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Fraction of labour force providing income redistribution services

What % of the labour force for an OECD country like the UK (mostly civil service I'm guessing) deals primarily with income redistribution, rather than income generation? Would a simple flat income tax ...
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What is the actual amount of money lost to corporate tax evasion and avoidance in the UK? [closed]

I find this topic confusing, because there are so many figures out there from seemingly credible sources. You hear politicians using figures to either attack current policy or defend it. Many people ...
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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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Are there any drawbacks to a hypothetical climate policy?- Carbon tax for reducing Income tax

Disclaimer: I do not have a formal education in economics Here is the idea of my hypothetical policy: graduated over a period, say about 10 years or longer, the income tax is phased out and a carbon ...
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Is Canada a country of high taxation in international comparison?

Looking through Canada's culture section on wikipedia, it's described as having: Government policies such as publicly funded health care, higher taxation to redistribute wealth, the outlawing of ...
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How to tax the robots?

The Socialist candidate for the upcoming presidential elections Benoit Hamon says he wants to roll out the Universal Basic Income in France, to be paid by "taxing the wealth created by robots" (for ...
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Does lowering corporate tax rates increase investment or provide some other benefit to a nation? [duplicate]

In Australia at the moment there is a move to lower the top corporate tax rate from 30% to 25% or thereabouts. The reasoning is that the benefits from investment will outweigh the cost to the budget. ...
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Is corporate tax an argument in equal income tax (from labour and capital) debate and does the return on capital depend on rate of the corporate tax?

In our country we have 25% personal income tax on labour, 15% corporate tax on corporations and 10% personal income tax on income from capital (e.g. dividends). Pundits in our country are saying that ...
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Why is the purchase of assets not entirely tax-exempt in the year of purchase?

I'm a sole proprietor who has bought some assets for my business, like a chair. My accountant told me that I can't claim the entire price as a business expense in the year I incurred it, and instead ...
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Supply/Demand Curve for Excise tax that's being passed 100% on to consumers

I'm doing a paper on the 'coca-cola tax' the tax on all sugary drinks. The premise is that it is an excise tax, which will then be passed 100% on to consumers. What I'm struggling with is how the ...
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Inelastic offer, tax paid by seller, who supports the charges

I have a small problem, I have a situation where we have a perfectly inelastic offer and a normal demand, then there is a tax that is paid by the supplier who supports the totality of the charges ? Is ...
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What are the arguments against a zero corporate tax? [duplicate]

I've read a title in the news proposing a zero corporate tax. Thinking about it I couldn't figure a good reason against. Why couldn't a country just set the corporate tax rate for firms to zero and ...
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What are the mathematical constants used in economy formulas?

For the calculation of the taxes, the rate is the coefficient of proportionality. This coefficient is constant because It is the value of the ratio between a quantity and another that is constantly ...
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Marginal tax rate question [closed]

In relation to an ordinary employee, the Prime Minister of Australia pays? a) the same marginal tax rate b) a higher marginal tax ate c) a lower marginal tax rate My answer for this ...
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Total UK Household Income

How would I calculate the total UK household income? I want to be able to estimate what a flat 10% income tax would generate (with no personal allowance or other tax breaks). Not that I agree with ...
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When a tax is imposed on the sellers, the price of the good rises. So, why doesn't the demand curve shift?

A tax imposed by the government on the sellers would drive up the price of the good. I understand that the supply curve will shift upwards due to this but the won't the demand curve also shift ...
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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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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 ...
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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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Self policing incentive in GST

Amongst several advantages of GST(Goods and Services Tax) I read one as that it prevents tax evasion through self policing incentive.But self policing incentive is already provided in VAT.So what's ...
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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 ...
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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 ...
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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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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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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 ...
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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 ...
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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 ...
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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 ...
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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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Lee and Saez (2012): Pareto-Improvement?

I'm interested in the following quote that came up in this earlier answer. Second, when labor supply responses are along the extensive margin only, which is the empirically relevant case, the co-...
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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 ...
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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 ...
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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 ...