Dale W. Jorgenson and Kun-Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.001.0001
- Subject:
- Economics and Finance, Public and Welfare
The concept of ‘cost of capital’ was introduced almost thirty years ago and quickly became an indispensable tool for modelling the impact of tax policy on investment behaviour. In the 1980s it ...
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The concept of ‘cost of capital’ was introduced almost thirty years ago and quickly became an indispensable tool for modelling the impact of tax policy on investment behaviour. In the 1980s it assumed a central role in tax reform debates through the closely related concept of the marginal effective tax rate. This book provides a comprehensive treatment of the cost of capital approach to tax policy analysis. In order to make the approach as accessible as possible, the analytical level of the book has been kept to an absolute minimum. The complexities are introduced in a step-by-step fashion, leading up to a representation of tax systems for capital income that is suitable for tax policy analysis. The success of the cost of capital approach is due in large part to its ability to assimilate a virtually unlimited amount of descriptive detail on alternative tax policies. In order to provide guidance to students and practitioners, the book contains a full implementation of the approach for the USA, including an analysis of the alternative proposals that culminated in the highly influential Tax Reform Act of 1986. The chapters of the book are the first in a series of Lectures in Monetary and Fiscal Policy given at Uppsala University in honour of Erik Lindahl, the Swedish economist who was a professor there from 1942 to 1958.Less
The concept of ‘cost of capital’ was introduced almost thirty years ago and quickly became an indispensable tool for modelling the impact of tax policy on investment behaviour. In the 1980s it assumed a central role in tax reform debates through the closely related concept of the marginal effective tax rate. This book provides a comprehensive treatment of the cost of capital approach to tax policy analysis. In order to make the approach as accessible as possible, the analytical level of the book has been kept to an absolute minimum. The complexities are introduced in a step-by-step fashion, leading up to a representation of tax systems for capital income that is suitable for tax policy analysis. The success of the cost of capital approach is due in large part to its ability to assimilate a virtually unlimited amount of descriptive detail on alternative tax policies. In order to provide guidance to students and practitioners, the book contains a full implementation of the approach for the USA, including an analysis of the alternative proposals that culminated in the highly influential Tax Reform Act of 1986. The chapters of the book are the first in a series of Lectures in Monetary and Fiscal Policy given at Uppsala University in honour of Erik Lindahl, the Swedish economist who was a professor there from 1942 to 1958.
STEVEN A. BANK
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195326192
- eISBN:
- 9780199775811
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195326192.003.007
- Subject:
- Law, Legal History
The turning point in the development of the corporate tax may have been the decade following World War II. There was significant consensus that the taxation of corporations was problematic. ...
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The turning point in the development of the corporate tax may have been the decade following World War II. There was significant consensus that the taxation of corporations was problematic. Businesses had borne a significant brunt of the burden during the war. Over a four-year period, corporate income tax rates had more than doubled from 19 to 40 percent, and Congress enacted a new excess profits tax at rates topping out at 95 percent. By January of 1946, at least sixty proposals for the relief of double taxation were in circulation, many of which were repackaged or reintroduced during succeeding years. It was not until 1954, however, as part of a comprehensive revamp of the Internal Revenue Code, that Congress enacted a modicum of dividend tax relief in the form of a phased-in $100 exemption and a 4 percent shareholder credit. This chapter considers four questions: (1) Why did it take so long for dividend tax relief to be enacted, given the initial momentum in favor of reform?; (2) What led dividend tax reform to rise to the top of the agenda in 1954?; (3) Why, given the degree of interest in integration proposals, was the relief so modest? And; (4) Why was it ultimately so short-lived?.Less
The turning point in the development of the corporate tax may have been the decade following World War II. There was significant consensus that the taxation of corporations was problematic. Businesses had borne a significant brunt of the burden during the war. Over a four-year period, corporate income tax rates had more than doubled from 19 to 40 percent, and Congress enacted a new excess profits tax at rates topping out at 95 percent. By January of 1946, at least sixty proposals for the relief of double taxation were in circulation, many of which were repackaged or reintroduced during succeeding years. It was not until 1954, however, as part of a comprehensive revamp of the Internal Revenue Code, that Congress enacted a modicum of dividend tax relief in the form of a phased-in $100 exemption and a 4 percent shareholder credit. This chapter considers four questions: (1) Why did it take so long for dividend tax relief to be enacted, given the initial momentum in favor of reform?; (2) What led dividend tax reform to rise to the top of the agenda in 1954?; (3) Why, given the degree of interest in integration proposals, was the relief so modest? And; (4) Why was it ultimately so short-lived?.
Hiromitsu Ishi
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199242566
- eISBN:
- 9780191596452
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199242569.001.0001
- Subject:
- Economics and Finance, South and East Asia
The Japanese tax system has notably changed through the periods of post‐World War II; i.e., reconstruction, rapid economic growth, and recent economic stagnation. In order to clarify the function and ...
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The Japanese tax system has notably changed through the periods of post‐World War II; i.e., reconstruction, rapid economic growth, and recent economic stagnation. In order to clarify the function and the effect of tax policy and practices, it is important to analyse how the Japanese tax system has developed during each period, and how it has contributed to the performance, good or bad, of the Japanese economy. In addition, it is necessary to assess successive rounds of tax reforms in the past because they have been greatly debated so far particularly concerning the adoption of Japan's value‐added tax ( the consumption tax ). Many see a great need to reform the tax system to adjust for the ongoing changes in the Japanese economy. The tax debate is always with us in relation to the changing patterns of the economy.Less
The Japanese tax system has notably changed through the periods of post‐World War II; i.e., reconstruction, rapid economic growth, and recent economic stagnation. In order to clarify the function and the effect of tax policy and practices, it is important to analyse how the Japanese tax system has developed during each period, and how it has contributed to the performance, good or bad, of the Japanese economy. In addition, it is necessary to assess successive rounds of tax reforms in the past because they have been greatly debated so far particularly concerning the adoption of Japan's value‐added tax ( the consumption tax ). Many see a great need to reform the tax system to adjust for the ongoing changes in the Japanese economy. The tax debate is always with us in relation to the changing patterns of the economy.
Hiromitsu Ishi
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199242566
- eISBN:
- 9780191596452
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199242569.003.0017
- Subject:
- Economics and Finance, South and East Asia
Treats two sweeping tax reforms starting from the late 1980s, that is to say, that for 1987–93 and that for 1994–99. It is important to explore the reasons leading up to a need for major reforms and ...
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Treats two sweeping tax reforms starting from the late 1980s, that is to say, that for 1987–93 and that for 1994–99. It is important to explore the reasons leading up to a need for major reforms and the contents of reform packages. Reform plans of three direct taxes, such as the individual income tax, the corporate tax, and the inheritance tax, are mainly discussed in detail.Less
Treats two sweeping tax reforms starting from the late 1980s, that is to say, that for 1987–93 and that for 1994–99. It is important to explore the reasons leading up to a need for major reforms and the contents of reform packages. Reform plans of three direct taxes, such as the individual income tax, the corporate tax, and the inheritance tax, are mainly discussed in detail.
STEVEN A. BANK
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195326192
- eISBN:
- 9780199775811
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195326192.003.008
- Subject:
- Law, Legal History
This chapter examines recent corporate tax reform activities and the future of corporate income tax. Topics covered include the dividend tax cut of 2003, the 2007 Treasury Conference and Rangel Bill, ...
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This chapter examines recent corporate tax reform activities and the future of corporate income tax. Topics covered include the dividend tax cut of 2003, the 2007 Treasury Conference and Rangel Bill, the corporate income tax and dividend policy, the trend away from corporations and toward alternative forms of business enterprises, and the globalization of corporate tax competition.Less
This chapter examines recent corporate tax reform activities and the future of corporate income tax. Topics covered include the dividend tax cut of 2003, the 2007 Treasury Conference and Rangel Bill, the corporate income tax and dividend policy, the trend away from corporations and toward alternative forms of business enterprises, and the globalization of corporate tax competition.
Dale W. Jorgenson and Kun‐Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.003.0003
- Subject:
- Economics and Finance, Public and Welfare
A quantitative and detailed description is presented of the US tax system and law, which begins by providing estimates of the rates of capital income taxation at both corporate and individual levels ...
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A quantitative and detailed description is presented of the US tax system and law, which begins by providing estimates of the rates of capital income taxation at both corporate and individual levels for the period 1947–86; property tax rates are also presented for household, non-corporate and corporate sectors. It is noted that the adoption of these tax preferences in the USA dramatically altered the incentives to invest in different types of assets and radically changed the distribution of the tax burden. Provisions are then discussed for capital cost recovery, including capital consumption allowances and the investment tax credit; next, a description is given of features of the financial structure of corporate and non-corporate businesses and households that affect the taxation of income from capital. Finally, the impact is considered of the Tax Reform Act of 1986 on the US tax system, especially in relation to the tax (financial) structure for income from capital; alternative approaches are considered. The data presented can be used to implement either the traditional or the new view of the corporate cost of capital.Less
A quantitative and detailed description is presented of the US tax system and law, which begins by providing estimates of the rates of capital income taxation at both corporate and individual levels for the period 1947–86; property tax rates are also presented for household, non-corporate and corporate sectors. It is noted that the adoption of these tax preferences in the USA dramatically altered the incentives to invest in different types of assets and radically changed the distribution of the tax burden. Provisions are then discussed for capital cost recovery, including capital consumption allowances and the investment tax credit; next, a description is given of features of the financial structure of corporate and non-corporate businesses and households that affect the taxation of income from capital. Finally, the impact is considered of the Tax Reform Act of 1986 on the US tax system, especially in relation to the tax (financial) structure for income from capital; alternative approaches are considered. The data presented can be used to implement either the traditional or the new view of the corporate cost of capital.
Dale W. Jorgenson and Kun‐Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.003.0004
- Subject:
- Economics and Finance, Public and Welfare
Alternative policy provisions are compared for capital income taxation and the social rates of return in terms of marginal effective tax rates, since, by measuring these for different assets, it is ...
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Alternative policy provisions are compared for capital income taxation and the social rates of return in terms of marginal effective tax rates, since, by measuring these for different assets, it is possible to quantify the sources of distortions in decisions involving the allocation of capital among different uses. Marginal effective tax rates for the USA are presented for capital income over the period 1947–86 for corporate and non-corporate businesses, and households. Differences in the effective tax rates under the 1986 Tax Reform Act (and the pre-existing 1985 Tax Law) are then considered, looking again at the same three categories, and also giving data on social wedges (differences in social rates of return) between the short- and long-lived assets. The last section of the chapter looks at alternative approaches.Less
Alternative policy provisions are compared for capital income taxation and the social rates of return in terms of marginal effective tax rates, since, by measuring these for different assets, it is possible to quantify the sources of distortions in decisions involving the allocation of capital among different uses. Marginal effective tax rates for the USA are presented for capital income over the period 1947–86 for corporate and non-corporate businesses, and households. Differences in the effective tax rates under the 1986 Tax Reform Act (and the pre-existing 1985 Tax Law) are then considered, looking again at the same three categories, and also giving data on social wedges (differences in social rates of return) between the short- and long-lived assets. The last section of the chapter looks at alternative approaches.
Terry Barker, Sudhir Junankar, Hector Pollitt, and Philip Summerton
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199570683
- eISBN:
- 9780191723186
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199570683.003.0007
- Subject:
- Economics and Finance, Public and Welfare, International
This chapter assesses the macroeconomic effects of carbon‐energy taxation introduced under unilateral environmental tax reform (ETR) in the 1990s undertaken in six member states of the European ...
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This chapter assesses the macroeconomic effects of carbon‐energy taxation introduced under unilateral environmental tax reform (ETR) in the 1990s undertaken in six member states of the European Union: Denmark, Finland, Germany, the Netherlands, Sweden, and the UK. The effects are estimated using the large‐scale Energy–Environment–Economy (E3) model for Europe, E3ME, which covers the countries involved, as well as the complete single market, so that the effects on other economies can be considered, along with any effects on competitiveness. The method is to identify the key characteristics of the green tax reform packages and include these in the modelling of the price and non‐price effects of the ETR on energy use and international trade in E3ME. The effects are then compared with a ‘reference case’ (i.e. a counterfactual case) generated by E3ME over the period 1995–2012 including current and expected developments in the EU economy, e.g. the impact of the EU Emission Trading Scheme, but without the ETR. The ETRs caused a modest reduction in fuel use and greenhouse gas emissions in all six of countries and a very small increase in employment and GDP. All the ETRs were assumed to be revenue‐neutral. The revenue recycling meant that the cost of ETR to the economy was significantly reduced and in several cases resulted in an increase in GDP. The method for revenue recycling strongly affects the results, as does the scale of exemptions offered to certain fuel user groups.Less
This chapter assesses the macroeconomic effects of carbon‐energy taxation introduced under unilateral environmental tax reform (ETR) in the 1990s undertaken in six member states of the European Union: Denmark, Finland, Germany, the Netherlands, Sweden, and the UK. The effects are estimated using the large‐scale Energy–Environment–Economy (E3) model for Europe, E3ME, which covers the countries involved, as well as the complete single market, so that the effects on other economies can be considered, along with any effects on competitiveness. The method is to identify the key characteristics of the green tax reform packages and include these in the modelling of the price and non‐price effects of the ETR on energy use and international trade in E3ME. The effects are then compared with a ‘reference case’ (i.e. a counterfactual case) generated by E3ME over the period 1995–2012 including current and expected developments in the EU economy, e.g. the impact of the EU Emission Trading Scheme, but without the ETR. The ETRs caused a modest reduction in fuel use and greenhouse gas emissions in all six of countries and a very small increase in employment and GDP. All the ETRs were assumed to be revenue‐neutral. The revenue recycling meant that the cost of ETR to the economy was significantly reduced and in several cases resulted in an increase in GDP. The method for revenue recycling strongly affects the results, as does the scale of exemptions offered to certain fuel user groups.
John Hills
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199276646
- eISBN:
- 9780191601644
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199276641.003.0007
- Subject:
- Economics and Finance, Public and Welfare
Discusses tax policy and its relationship with social security. Sets out trends in taxation in the UK over the last 25 years, how these compare with those in other countries, and the relationship ...
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Discusses tax policy and its relationship with social security. Sets out trends in taxation in the UK over the last 25 years, how these compare with those in other countries, and the relationship between the totals of tax and public spending. Describes Britain’s overall tax structure, the changing role of tax reliefs and what are now known as ‘tax credits’, and at how much tax people at different points in the income distribution pay. Looks at the changing interaction between tax and social security, at how the reforms of the last few years have affected incomes, and the implications of these changes for work incentives. The final section presents public attitudes towards taxation, in terms of its overall level, its links to particular spending items, and its progressivity – the evidence suggests some important differences between how people think the tax system works, how they think it ought to work, and how it actually does.Less
Discusses tax policy and its relationship with social security. Sets out trends in taxation in the UK over the last 25 years, how these compare with those in other countries, and the relationship between the totals of tax and public spending. Describes Britain’s overall tax structure, the changing role of tax reliefs and what are now known as ‘tax credits’, and at how much tax people at different points in the income distribution pay. Looks at the changing interaction between tax and social security, at how the reforms of the last few years have affected incomes, and the implications of these changes for work incentives. The final section presents public attitudes towards taxation, in terms of its overall level, its links to particular spending items, and its progressivity – the evidence suggests some important differences between how people think the tax system works, how they think it ought to work, and how it actually does.
Sean D. Ehrlich
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199737536
- eISBN:
- 9780199918645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199737536.003.0007
- Subject:
- Political Science, American Politics
Although all countries must tax their citizenry, wide variation exists in how this taxation is conducted. Countries have a wide variety of different types of taxes—such as income taxes, consumption ...
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Although all countries must tax their citizenry, wide variation exists in how this taxation is conducted. Countries have a wide variety of different types of taxes—such as income taxes, consumption taxes, and property taxes—and can create all sorts of exemptions and deduction and rebates that benefit specific activities or industries. Adding additional types of taxes or additional tax exemptions adds complexity to the tax code, and this chapter demonstrates that when a country has more access points, they are more likely to add this complexity as narrow groups push for specific measures that benefit only them.Less
Although all countries must tax their citizenry, wide variation exists in how this taxation is conducted. Countries have a wide variety of different types of taxes—such as income taxes, consumption taxes, and property taxes—and can create all sorts of exemptions and deduction and rebates that benefit specific activities or industries. Adding additional types of taxes or additional tax exemptions adds complexity to the tax code, and this chapter demonstrates that when a country has more access points, they are more likely to add this complexity as narrow groups push for specific measures that benefit only them.
Agnar Sandmo
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198297987
- eISBN:
- 9780191596858
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019829798X.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
It has often been claimed that there will be a ‘double dividend’ from the introduction of environmental taxes. Not only will it improve the quality of the environment by substituting taxes that ...
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It has often been claimed that there will be a ‘double dividend’ from the introduction of environmental taxes. Not only will it improve the quality of the environment by substituting taxes that actually improve the allocation of resources for taxes that distort it but there will also be another social gain in addition to the primary one. The chapter takes a critical look at three notions of the double dividend—a more efficient tax system, a lower rate of unemployment, and a lower marginal cost of public funds. In all three cases, it is found that a double dividend is a real possibility, but there is no guarantee that it will actually occur. The analysis identifies the conditions under which green tax reforms are likely to be successful with respect to each of the three dividends.Less
It has often been claimed that there will be a ‘double dividend’ from the introduction of environmental taxes. Not only will it improve the quality of the environment by substituting taxes that actually improve the allocation of resources for taxes that distort it but there will also be another social gain in addition to the primary one. The chapter takes a critical look at three notions of the double dividend—a more efficient tax system, a lower rate of unemployment, and a lower marginal cost of public funds. In all three cases, it is found that a double dividend is a real possibility, but there is no guarantee that it will actually occur. The analysis identifies the conditions under which green tax reforms are likely to be successful with respect to each of the three dividends.
Ke-young Chu, Hamid Davoodi, and Sanjeev Gupta
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199271412
- eISBN:
- 9780191601255
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199271410.003.0010
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Provides an overview of the changes in income distribution in developing and transition countries in recent decades, and assesses the incidence of taxes and government expenditure in these countries. ...
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Provides an overview of the changes in income distribution in developing and transition countries in recent decades, and assesses the incidence of taxes and government expenditure in these countries. For the overview of income distribution, the chapter relies largely on a set of newly available ‘high‐quality’ income‐distribution data. For the assessment of tax and government expenditure incidence, it relies on existing incidence studies on individual countries. The chapter has five sections: Introduction; The Role of Taxes and Social Spending; Selective Literature Survey—a survey of the studies on the incidence of taxes and expenditure, paying particular attention to the incidence of government spending on education and health, and reviewing the available evidence for a large number of developing countries; Role of Taxes and Government Social Spending Policy—this section offers an overview of the changes in income distribution in developing countries from the 1970s to the 1990s, with separate discussion of the nature of tax reforms and social expenditure policy and their distributional implications in selected countries (Hungary, Indonesia, and Thailand); and Summary and Conclusions.Less
Provides an overview of the changes in income distribution in developing and transition countries in recent decades, and assesses the incidence of taxes and government expenditure in these countries. For the overview of income distribution, the chapter relies largely on a set of newly available ‘high‐quality’ income‐distribution data. For the assessment of tax and government expenditure incidence, it relies on existing incidence studies on individual countries. The chapter has five sections: Introduction; The Role of Taxes and Social Spending; Selective Literature Survey—a survey of the studies on the incidence of taxes and expenditure, paying particular attention to the incidence of government spending on education and health, and reviewing the available evidence for a large number of developing countries; Role of Taxes and Government Social Spending Policy—this section offers an overview of the changes in income distribution in developing countries from the 1970s to the 1990s, with separate discussion of the nature of tax reforms and social expenditure policy and their distributional implications in selected countries (Hungary, Indonesia, and Thailand); and Summary and Conclusions.
WILLIAM J. ASHWORTH
- Published in print:
- 2003
- Published Online:
- January 2010
- ISBN:
- 9780199259212
- eISBN:
- 9780191717918
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199259212.003.0020
- Subject:
- History, British and Irish Early Modern History, Economic History
This chapter shows how tax reform was a process that began half a century earlier, with the gradual modelling of the state's administrative structure along the lines of the excise, and the gradual ...
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This chapter shows how tax reform was a process that began half a century earlier, with the gradual modelling of the state's administrative structure along the lines of the excise, and the gradual removal of the sinecures and placement that characterized ‘Old Corruption’. Actual tax reform also needed to be presented and seen in the clothes of a new and fairer state, which required the creation of legitimacy via retrenchment and construction of norms of probity and transparency in the management of state finances.Less
This chapter shows how tax reform was a process that began half a century earlier, with the gradual modelling of the state's administrative structure along the lines of the excise, and the gradual removal of the sinecures and placement that characterized ‘Old Corruption’. Actual tax reform also needed to be presented and seen in the clothes of a new and fairer state, which required the creation of legitimacy via retrenchment and construction of norms of probity and transparency in the management of state finances.
Robinson Woodward-Burns
- Published in print:
- 2021
- Published Online:
- January 2022
- ISBN:
- 9780300248692
- eISBN:
- 9780300258288
- Item type:
- chapter
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300248692.003.0005
- Subject:
- Political Science, American Politics
This chapter discusses progressive-era politics in five roughly chronological steps. The first and second sections recount how most states, in the absence of federal action, implemented the income ...
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This chapter discusses progressive-era politics in five roughly chronological steps. The first and second sections recount how most states, in the absence of federal action, implemented the income tax and direct election of senators in the 1890s and 1910s, aiding the later passage of the matching Sixteenth and Seventeenth Amendments to the federal Constitution in 1913. The third section describes the long fight for female suffrage through state constitutional reform in the 1900s and 1910s, eventually yielding the accompanying federal Nineteenth Amendment. The fourth section concerns prohibition, a case of national deference to the states, failed dictation of national liquor law, and state convergence around repeal between the 1910s and 1930s. The chapter concludes with an explanation of how state constitution-making pre-empted federal amendments on parochial schooling, polygamy, child labor, and civil and voting rights in these years.Less
This chapter discusses progressive-era politics in five roughly chronological steps. The first and second sections recount how most states, in the absence of federal action, implemented the income tax and direct election of senators in the 1890s and 1910s, aiding the later passage of the matching Sixteenth and Seventeenth Amendments to the federal Constitution in 1913. The third section describes the long fight for female suffrage through state constitutional reform in the 1900s and 1910s, eventually yielding the accompanying federal Nineteenth Amendment. The fourth section concerns prohibition, a case of national deference to the states, failed dictation of national liquor law, and state convergence around repeal between the 1910s and 1930s. The chapter concludes with an explanation of how state constitution-making pre-empted federal amendments on parochial schooling, polygamy, child labor, and civil and voting rights in these years.
Daniel N. Shaviro
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0007
- Subject:
- Economics and Finance, Financial Economics
Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the ...
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Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the financial crisis, but do not appear to have been among the primary causes. Even without a strong causal link, however, the pre-existing case for tax reform at all these margins arguably is strengthened by the 2008 financial crisis, which suggests that tax rules not only fell short of classic neutrality benchmarks but generally leaned in precisely the wrong direction.Less
Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the financial crisis, but do not appear to have been among the primary causes. Even without a strong causal link, however, the pre-existing case for tax reform at all these margins arguably is strengthened by the 2008 financial crisis, which suggests that tax rules not only fell short of classic neutrality benchmarks but generally leaned in precisely the wrong direction.
Hiromitsu Ishi
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199242566
- eISBN:
- 9780191596452
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199242569.003.0014
- Subject:
- Economics and Finance, South and East Asia
Examines indirect tax reform movements in the late 1980s before the introduction of a broad‐based consumption tax: VAT. Needless to say, the adoption of VAT had a close bearing upon the changes in ...
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Examines indirect tax reform movements in the late 1980s before the introduction of a broad‐based consumption tax: VAT. Needless to say, the adoption of VAT had a close bearing upon the changes in existing excise taxes, such as alcoholic beverages, tabacco, petrol, and commodity taxes.Less
Examines indirect tax reform movements in the late 1980s before the introduction of a broad‐based consumption tax: VAT. Needless to say, the adoption of VAT had a close bearing upon the changes in existing excise taxes, such as alcoholic beverages, tabacco, petrol, and commodity taxes.
Dale W. Jorgenson and Kun‐Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.003.0002
- Subject:
- Economics and Finance, Public and Welfare
Features of the US tax system and law are employed to illustrate the complexities that arise in practical discussions of tax policy: the tax treatment is considered of income from assets held by ...
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Features of the US tax system and law are employed to illustrate the complexities that arise in practical discussions of tax policy: the tax treatment is considered of income from assets held by households, non-corporate businesses and corporations under US tax law, and for assets held in each sector an appropriate cost of capital and rate of return is defined. The chapter begins with the household sector, where the taxation of income from capital takes its simplest form. The taxation of income from non-corporate business is then considered — this is treated as fully distributed to its owners (individual income tax). Next, an analysis is made of the taxation of corporate income, which requires the integration of provisions of individual and corporate income tax laws. The last two sections of the chapter discuss tax reform and alternative approaches.Less
Features of the US tax system and law are employed to illustrate the complexities that arise in practical discussions of tax policy: the tax treatment is considered of income from assets held by households, non-corporate businesses and corporations under US tax law, and for assets held in each sector an appropriate cost of capital and rate of return is defined. The chapter begins with the household sector, where the taxation of income from capital takes its simplest form. The taxation of income from non-corporate business is then considered — this is treated as fully distributed to its owners (individual income tax). Next, an analysis is made of the taxation of corporate income, which requires the integration of provisions of individual and corporate income tax laws. The last two sections of the chapter discuss tax reform and alternative approaches.
Reuven Avi-Yonah, Nicola Sartori, and Omri Marian
- Published in print:
- 2011
- Published Online:
- May 2011
- ISBN:
- 9780195321357
- eISBN:
- 9780199893690
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195321357.001.0001
- Subject:
- Law, Company and Commercial Law, Public International Law
This book covers the standard topics regarding income tax, using a comparative perspective. The book considers the US approach as a benchmark and compares it with approaches used in other countries ...
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This book covers the standard topics regarding income tax, using a comparative perspective. The book considers the US approach as a benchmark and compares it with approaches used in other countries that form an interesting contrast, or a telling similarity. Comparative tax studies serve multiple purposes. Many commentators have suggested comparative taxation as an instrument to advance, inter alia, successful tax reforms, cultural understanding, democratic values, legal harmonization, and a better understanding of domestic tax laws. This book is offering a general approach to comparative tax studies that goes beyond the view of comparative taxation as an autonomous field of legal studies.Less
This book covers the standard topics regarding income tax, using a comparative perspective. The book considers the US approach as a benchmark and compares it with approaches used in other countries that form an interesting contrast, or a telling similarity. Comparative tax studies serve multiple purposes. Many commentators have suggested comparative taxation as an instrument to advance, inter alia, successful tax reforms, cultural understanding, democratic values, legal harmonization, and a better understanding of domestic tax laws. This book is offering a general approach to comparative tax studies that goes beyond the view of comparative taxation as an autonomous field of legal studies.
John W. Diamond and George R. Zodrow (eds)
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262042475
- eISBN:
- 9780262271707
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262042475.001.0001
- Subject:
- Economics and Finance, Econometrics
Reform of the federal income tax system has become a perennial item on the domestic policy agenda of the United States, although there is considerable uncertainty over specifics. Indeed the recent ...
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Reform of the federal income tax system has become a perennial item on the domestic policy agenda of the United States, although there is considerable uncertainty over specifics. Indeed the recent report of the President’s Advisory Panel on Federal Tax Reform recommended not one but two divergent policy directions (and included extensive discussion of a third). This book discusses a wide range of issues raised by the prospect of significant tax reform, identifying the most critical questions and considering whether the answers are known, unknown—or unknowable. The debates over tax reform usually concern the advantages and disadvantages of income-based taxation as opposed to any of the several alternative forms of consumption-based taxation. The book opens with chapters that discuss the strengths, weaknesses, and political feasibility of these options. Other chapters consider the effect of tax reform on businesses, especially their investment behavior, and include a discussion of possible problems in any transition to a consumption-based tax; international taxation issues arising in an era of globalization; and individual behavioral response to tax reform, including a view of the topic from the perspective of the relatively new field of behavioral economics.Less
Reform of the federal income tax system has become a perennial item on the domestic policy agenda of the United States, although there is considerable uncertainty over specifics. Indeed the recent report of the President’s Advisory Panel on Federal Tax Reform recommended not one but two divergent policy directions (and included extensive discussion of a third). This book discusses a wide range of issues raised by the prospect of significant tax reform, identifying the most critical questions and considering whether the answers are known, unknown—or unknowable. The debates over tax reform usually concern the advantages and disadvantages of income-based taxation as opposed to any of the several alternative forms of consumption-based taxation. The book opens with chapters that discuss the strengths, weaknesses, and political feasibility of these options. Other chapters consider the effect of tax reform on businesses, especially their investment behavior, and include a discussion of possible problems in any transition to a consumption-based tax; international taxation issues arising in an era of globalization; and individual behavioral response to tax reform, including a view of the topic from the perspective of the relatively new field of behavioral economics.
Dale W. Jorgenson and Kun‐Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.003.0005
- Subject:
- Economics and Finance, Public and Welfare
This final chapter provides an evaluation of the cost of capital approach to tax policy analysis. This approach has amply proved its usefulness as a guide to tax reform. While the US tax policy ...
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This final chapter provides an evaluation of the cost of capital approach to tax policy analysis. This approach has amply proved its usefulness as a guide to tax reform. While the US tax policy changes of the early 1980s introduced additional barriers to efficient allocation of capital, the Tax Reform Act of 1986 reduced these barriers substantially. Important discrepancies remain, however, between effective tax rates on income from household and business assets (both corporate and non-corporate). Further reduction in these discrepancies presents an important opportunity for increasing the efficiency of capital allocation.Less
This final chapter provides an evaluation of the cost of capital approach to tax policy analysis. This approach has amply proved its usefulness as a guide to tax reform. While the US tax policy changes of the early 1980s introduced additional barriers to efficient allocation of capital, the Tax Reform Act of 1986 reduced these barriers substantially. Important discrepancies remain, however, between effective tax rates on income from household and business assets (both corporate and non-corporate). Further reduction in these discrepancies presents an important opportunity for increasing the efficiency of capital allocation.
