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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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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Monopoly and Taxes (Nicholson Exercise)

Hello I'm working through Microeconomic Theory : Basic Principles and Extensions of Nicholson and Snyder 10e, for an exam and I fail to get how to answer this question (p.517) : A specific tax is a ...
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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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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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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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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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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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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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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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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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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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The United States' position on the Laffer Curve

According to a 2012 IGM panel (cf. reference below), most experts believe that a federal income tax cut would lead to a higher GDP in five years, ceteris paribus. Is this effect purely Keynesian, and ...
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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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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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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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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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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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Effect of government debt on tax rates?

Is there any well known study that links government debt to tax rates? I have been searching the literature for some time now and haven't found any. More importantly, could government debt track tax ...
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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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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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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 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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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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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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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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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 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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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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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 ...
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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 ...
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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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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 ...
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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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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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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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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 ...
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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 ...
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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, ...
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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 ...
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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 ...
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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 ...
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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 ...