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."

Filter by
Sorted by
Tagged with
2
votes
1answer
64k 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
79 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
204 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 ...
4
votes
2answers
5k 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
29 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
29 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
59 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
52 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
263 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
60 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
107 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
921 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
57 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
84 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
103 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
16k 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
7k 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 ...
7
votes
2answers
583 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
159 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
58 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
109 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 ...
2
votes
1answer
20 views

Do US 501(c)(3) non-profits have to divulge their investments?

Do US non-profit organizations with tax exemption under Section 501(c)(3) of its Internal Revenue Code which have investments (such as university endowment funds) have to divulge these investments in ...
12
votes
6answers
708 views

Does land value tax create an incentive to merge land ownerships?

LVT is "a tax on the unimproved value of land", and "in theory, it does not distort decision making". But if I own land then improvements such as buildings on my neighbour's land can easily increase ...
10
votes
1answer
325 views

Straub and Werning, 2014, on zero capital taxation

This is a test balloon to see whether these kinds of questions are appreciated/welcome on Econ.SE: I had a hard time grasping Straub and Werning (2014) (no paywall). I understand the general ...
7
votes
2answers
323 views

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-...
-1
votes
1answer
26 views

What is the tax rate U.S.Gov takes from individual income

How much should the person must get? and is it taken from any person who works in US? My country is paralyzed to impose this tax due to oligarchs heavy influence. I just wanted to gain some knowledge....
3
votes
1answer
123 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. ...
6
votes
1answer
90 views

Policy relevance of the optimal taxation given uncertainty about social welfare specification

One common criticism in the optimal taxation literature is the specification of the social welfare function. The optimal taxation literature (I have the Mirrlees framework in mind) relies on first ...
4
votes
1answer
60 views

Has any country attempted to inflation adjust capital gains before taxation?

Inspired by the answer to a different question I wondered: Can anyone think of a case study example, past or present, when capital gains are inflating adjusted before being taxed. I could imagine ...
18
votes
2answers
776 views

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 ...
11
votes
2answers
198 views

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 ...