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.
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.
Richard S Collier
- Published in print:
- 2020
- Published Online:
- September 2020
- ISBN:
- 9780198859673
- eISBN:
- 9780191892035
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198859673.003.0008
- Subject:
- Economics and Finance, Financial Economics, Public and Welfare
This chapter is concerned with the question of why tax is so often at the heart of highly structured trades entered into by banks. After first considering the position of banks in relation to tax ...
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This chapter is concerned with the question of why tax is so often at the heart of highly structured trades entered into by banks. After first considering the position of banks in relation to tax systems, it sets out the reasons why banks have a unique ability to exploit such systems in order to generate revenue streams for their business. It then discusses the features in a tax system that have a tendency to contribute to the process by which rules in that system are exploited. These features include both the substantive tax rules and the arrangements for the administration of tax systems. The discussion explains why the fragmentation and inordinate complexity of the rules and the manner in which they are enforced and administered often have the collective and paradoxical effect of facilitating, rather than hindering, the exploitation of the tax system.Less
This chapter is concerned with the question of why tax is so often at the heart of highly structured trades entered into by banks. After first considering the position of banks in relation to tax systems, it sets out the reasons why banks have a unique ability to exploit such systems in order to generate revenue streams for their business. It then discusses the features in a tax system that have a tendency to contribute to the process by which rules in that system are exploited. These features include both the substantive tax rules and the arrangements for the administration of tax systems. The discussion explains why the fragmentation and inordinate complexity of the rules and the manner in which they are enforced and administered often have the collective and paradoxical effect of facilitating, rather than hindering, the exploitation of the tax system.
Anna Filipczak-Kocur
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198204022
- eISBN:
- 9780191676093
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198204022.003.0015
- Subject:
- History, Economic History
After 1385 Poland and Lithuania were linked in a dynastic union which was transformed into a conscious political association by the Union of Lublin of 1569. As a result of this association, the ...
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After 1385 Poland and Lithuania were linked in a dynastic union which was transformed into a conscious political association by the Union of Lublin of 1569. As a result of this association, the Polish tax system was introduced into Lithuania with only relatively minor changes. The revenues and expenditures of the two parts of the Polish–Lithuanian Commonwealth (Rzeczpospolita or Res Publica) were kept separate, but both states frequently financed the same political ventures. This chapter presents the results of research based on a comparison between the fiscal systems of the kingdom of Poland and the Grand Duchy of Lithuania and demonstrates the revenue balance between the two states in times of war. In particular, it draws upon materials found in Russian archives: among their holdings are documents from the Lithuanian Chancellery known as Metryka Litewska, which include data on the income and expenditure of the Lithuanian treasury. In general, however, the sources for Polish fiscal history are much more extensive than for those of Lithuania and for this reason the emphasis of the chapter is on Polish developments.Less
After 1385 Poland and Lithuania were linked in a dynastic union which was transformed into a conscious political association by the Union of Lublin of 1569. As a result of this association, the Polish tax system was introduced into Lithuania with only relatively minor changes. The revenues and expenditures of the two parts of the Polish–Lithuanian Commonwealth (Rzeczpospolita or Res Publica) were kept separate, but both states frequently financed the same political ventures. This chapter presents the results of research based on a comparison between the fiscal systems of the kingdom of Poland and the Grand Duchy of Lithuania and demonstrates the revenue balance between the two states in times of war. In particular, it draws upon materials found in Russian archives: among their holdings are documents from the Lithuanian Chancellery known as Metryka Litewska, which include data on the income and expenditure of the Lithuanian treasury. In general, however, the sources for Polish fiscal history are much more extensive than for those of Lithuania and for this reason the emphasis of the chapter is on Polish developments.
Patrick K. O'Brien and Philip A. Hunt
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198204022
- eISBN:
- 9780191676093
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198204022.003.0003
- Subject:
- History, Economic History
This chapter discusses the development of the fiscal system in England between 1485 and 1815. The rise of a powerful and economically functional state in Britain waited upon two interrelated ...
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This chapter discusses the development of the fiscal system in England between 1485 and 1815. The rise of a powerful and economically functional state in Britain waited upon two interrelated developments in its fiscal system: firstly, the establishment of a permanent public debt and, secondly, the provision of increasing flows of revenues (derived mainly from indirect taxes) required to service the regular interest payments which constituted the precondition for the debt's erratic but rapid accumulation in wartime.Less
This chapter discusses the development of the fiscal system in England between 1485 and 1815. The rise of a powerful and economically functional state in Britain waited upon two interrelated developments in its fiscal system: firstly, the establishment of a permanent public debt and, secondly, the provision of increasing flows of revenues (derived mainly from indirect taxes) required to service the regular interest payments which constituted the precondition for the debt's erratic but rapid accumulation in wartime.
Michael Littlewood
- Published in print:
- 2010
- Published Online:
- September 2011
- ISBN:
- 9789622090996
- eISBN:
- 9789882207455
- Item type:
- chapter
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789622090996.003.0009
- Subject:
- Economics and Finance, South and East Asia
This chapter focuses on the British Handover of Hong Kong to China. On 30 June 1997, Hong Kong ceased to be a British colony and became a Special Administrative Region (SAR) of the People's Republic ...
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This chapter focuses on the British Handover of Hong Kong to China. On 30 June 1997, Hong Kong ceased to be a British colony and became a Special Administrative Region (SAR) of the People's Republic of China. This transition entailed no change in the territory's tax system. The Inland Revenue Ordinance, like almost all the legislation left behind by the colonial regime, remained in force. China promised that Hong Kong would enjoy a high degree of autonomy and that the structure of its government would remain unchanged. More particularly, China made it clear that there still would be a complete separation between Hong Kong's tax system and public finances.Less
This chapter focuses on the British Handover of Hong Kong to China. On 30 June 1997, Hong Kong ceased to be a British colony and became a Special Administrative Region (SAR) of the People's Republic of China. This transition entailed no change in the territory's tax system. The Inland Revenue Ordinance, like almost all the legislation left behind by the colonial regime, remained in force. China promised that Hong Kong would enjoy a high degree of autonomy and that the structure of its government would remain unchanged. More particularly, China made it clear that there still would be a complete separation between Hong Kong's tax system and public finances.
Eberhard Isenmann
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198204022
- eISBN:
- 9780191676093
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198204022.003.0008
- Subject:
- History, Economic History
This chapter discusses the development of the fiscal system in the Holy Roman Empire in the Middle Ages. The coincidence of long-term financial and political decline with a new, severe and almost ...
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This chapter discusses the development of the fiscal system in the Holy Roman Empire in the Middle Ages. The coincidence of long-term financial and political decline with a new, severe and almost permanent military threat and an urgent demand for constitutional reform in the 15th century created the context in which early modem taxation would develop. Since neither the Emperors and Kings of the Romans nor the territorial rulers had arbitrary or absolute powers to tax, the financial history of this particular period also forms part of constitutional history, and in this chapter's analysis both subjects are treated as part of a single whole.Less
This chapter discusses the development of the fiscal system in the Holy Roman Empire in the Middle Ages. The coincidence of long-term financial and political decline with a new, severe and almost permanent military threat and an urgent demand for constitutional reform in the 15th century created the context in which early modem taxation would develop. Since neither the Emperors and Kings of the Romans nor the territorial rulers had arbitrary or absolute powers to tax, the financial history of this particular period also forms part of constitutional history, and in this chapter's analysis both subjects are treated as part of a single whole.
Michael Littlewood
- Published in print:
- 2010
- Published Online:
- September 2011
- ISBN:
- 9789622090996
- eISBN:
- 9789882207455
- Item type:
- chapter
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789622090996.003.0001
- Subject:
- Economics and Finance, South and East Asia
This chapter provides some background information on the origins, developments, and operation of Hong Kong's tax system. It also provides a brief account of the distinguishing characteristics of Hong ...
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This chapter provides some background information on the origins, developments, and operation of Hong Kong's tax system. It also provides a brief account of the distinguishing characteristics of Hong Kong's tax system; Hong Kong's system of government, its philosophy of public finance, and other sources of revenue; the British Income Tax Act of 1803, commonly called Addington's Act, which served as the model upon which Hong Kong's tax system was based; and the source principle and practice followed by most British colonies in the early twentieth century of exempting offshore income from tax.Less
This chapter provides some background information on the origins, developments, and operation of Hong Kong's tax system. It also provides a brief account of the distinguishing characteristics of Hong Kong's tax system; Hong Kong's system of government, its philosophy of public finance, and other sources of revenue; the British Income Tax Act of 1803, commonly called Addington's Act, which served as the model upon which Hong Kong's tax system was based; and the source principle and practice followed by most British colonies in the early twentieth century of exempting offshore income from tax.
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.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The determination of a system of environmental taxes must be seen in conjunction with the design of the tax system as a whole. The present analysis is based on a model of optimal commodity taxation ...
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The determination of a system of environmental taxes must be seen in conjunction with the design of the tax system as a whole. The present analysis is based on a model of optimal commodity taxation in the presence of environmental pollution. The main conclusion is that taxes should be designed both so as to minimize market distortions, and to give the right incentives to improve the environment. However, only the goods whose consumption or production actually generates pollution should include an ‘environmental component’. This is an example of the more general principle of the targeting of policy instruments.Less
The determination of a system of environmental taxes must be seen in conjunction with the design of the tax system as a whole. The present analysis is based on a model of optimal commodity taxation in the presence of environmental pollution. The main conclusion is that taxes should be designed both so as to minimize market distortions, and to give the right incentives to improve the environment. However, only the goods whose consumption or production actually generates pollution should include an ‘environmental component’. This is an example of the more general principle of the targeting of policy instruments.
Michael Littlewood
- Published in print:
- 2010
- Published Online:
- September 2011
- ISBN:
- 9789622090996
- eISBN:
- 9789882207455
- Item type:
- book
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789622090996.001.0001
- Subject:
- Economics and Finance, South and East Asia
This book tells an instructive tale of Hong Kong's tax system from 1940 (when taxes on income were first introduced in the territory) until the present day. For Hong Kong's own historians and ...
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This book tells an instructive tale of Hong Kong's tax system from 1940 (when taxes on income were first introduced in the territory) until the present day. For Hong Kong's own historians and political scientists, it supplies cogent but previously neglected evidence of the influence of the territory's business interests. For students of British imperialism, it provides a compelling case-study of relations between London and a recalcitrant colony. For Hong Kong's own tax professionals, it corrects the notion that the territory's tax system was the product of governmental design. And for tax theorists and taxpayers everywhere, it suggests how it might be possible to structure a combination of very light taxes and very low public spending so as to win broad popular support.Less
This book tells an instructive tale of Hong Kong's tax system from 1940 (when taxes on income were first introduced in the territory) until the present day. For Hong Kong's own historians and political scientists, it supplies cogent but previously neglected evidence of the influence of the territory's business interests. For students of British imperialism, it provides a compelling case-study of relations between London and a recalcitrant colony. For Hong Kong's own tax professionals, it corrects the notion that the territory's tax system was the product of governmental design. And for tax theorists and taxpayers everywhere, it suggests how it might be possible to structure a combination of very light taxes and very low public spending so as to win broad popular support.
Avi-Yonah Reuven, Nicola Sartori, and Omri Marian
- Published in print:
- 2011
- Published Online:
- May 2011
- ISBN:
- 9780195321357
- eISBN:
- 9780199893690
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195321357.003.0002
- Subject:
- Law, Company and Commercial Law, Public International Law
This chapter addresses the starting point of any study on income tax: the definition of income as the base of the tax (the subject matter on which the tax is imposed). First, it discusses the two ...
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This chapter addresses the starting point of any study on income tax: the definition of income as the base of the tax (the subject matter on which the tax is imposed). First, it discusses the two main concepts of taxable income, the source concept and the accretion concept, and the two main methods countries use to define the tax base, the exclusion (a “global” definition of income) or the inclusion (a “scheduler” definition). The chapter then reviews some of the major problems of defining income in the US income tax system and juxtaposes US solutions against those used by other countries. Finally, it discusses the idea of the realization requirement, which has been described as the “Achilles' heel” of income tax.Less
This chapter addresses the starting point of any study on income tax: the definition of income as the base of the tax (the subject matter on which the tax is imposed). First, it discusses the two main concepts of taxable income, the source concept and the accretion concept, and the two main methods countries use to define the tax base, the exclusion (a “global” definition of income) or the inclusion (a “scheduler” definition). The chapter then reviews some of the major problems of defining income in the US income tax system and juxtaposes US solutions against those used by other countries. Finally, it discusses the idea of the realization requirement, which has been described as the “Achilles' heel” of income tax.
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.
Maria Flevotomou, Michael Haliassos, Christos Kotsogiannis, and Costas Meghir
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9780262035835
- eISBN:
- 9780262339216
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262035835.003.0010
- Subject:
- Economics and Finance, International
A well-designed tax and welfare benefit system, which minimizes distortions while raising the required revenue and providing suitable social insurance, is a key component of an advanced economy. This ...
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A well-designed tax and welfare benefit system, which minimizes distortions while raising the required revenue and providing suitable social insurance, is a key component of an advanced economy. This chapter describes the current Greek tax system and proposes three simpler alternatives, which perform well in their implied incentives, are budget neutral, and achieve better social insurance and redistribution. It provides static simulations of these systems, demonstrating the resulting income distribution, and discusses the implied incentives. It also emphasizes the importance of evaluating such systems with actual microeconomic data, a process that should be a standard tool of policy making.Less
A well-designed tax and welfare benefit system, which minimizes distortions while raising the required revenue and providing suitable social insurance, is a key component of an advanced economy. This chapter describes the current Greek tax system and proposes three simpler alternatives, which perform well in their implied incentives, are budget neutral, and achieve better social insurance and redistribution. It provides static simulations of these systems, demonstrating the resulting income distribution, and discusses the implied incentives. It also emphasizes the importance of evaluating such systems with actual microeconomic data, a process that should be a standard tool of policy making.
W. M. Ormrod
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198204022
- eISBN:
- 9780191676093
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198204022.003.0002
- Subject:
- History, Economic History
This chapter discusses the development of the fiscal system in medieval England. It identifies three important general themes which recur in many of the ensuing medieval and early modem case studies. ...
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This chapter discusses the development of the fiscal system in medieval England. It identifies three important general themes which recur in many of the ensuing medieval and early modem case studies. Firstly, even very early monarchical states could create highly sophisticated and productive systems for raising revenue which not only reflected the political authority of the king but also tapped some of the most important sources of wealth in the society and economy over which he ruled. Secondly, there was a strong tendency for precocious and successful tax systems to become ossified and increasingly to serve the interests not of the state but of its more powerful subjects. Thirdly, the medieval idea that a ruler had a right to dispose of his resources as he willed continued even after the shift away from the exploitation of prerogatives to the negotiation of taxes, thus slowing down the emergence of a genuine system of public finance based on a declared budget, a permanent mechanism allowing for public accountability and, perhaps above all, the establishment of a public debt.Less
This chapter discusses the development of the fiscal system in medieval England. It identifies three important general themes which recur in many of the ensuing medieval and early modem case studies. Firstly, even very early monarchical states could create highly sophisticated and productive systems for raising revenue which not only reflected the political authority of the king but also tapped some of the most important sources of wealth in the society and economy over which he ruled. Secondly, there was a strong tendency for precocious and successful tax systems to become ossified and increasingly to serve the interests not of the state but of its more powerful subjects. Thirdly, the medieval idea that a ruler had a right to dispose of his resources as he willed continued even after the shift away from the exploitation of prerogatives to the negotiation of taxes, thus slowing down the emergence of a genuine system of public finance based on a declared budget, a permanent mechanism allowing for public accountability and, perhaps above all, the establishment of a public debt.
Michael J. Graetz
- Published in print:
- 2008
- Published Online:
- October 2013
- ISBN:
- 9780300122749
- eISBN:
- 9780300150193
- Item type:
- book
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300122749.001.0001
- Subject:
- Economics and Finance, Economic Systems
To most Americans, the United States tax code has become a vast and confounding puzzle. In 1940, the instructions to the form 1040 were about four pages long. Today, they have ballooned to more than ...
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To most Americans, the United States tax code has become a vast and confounding puzzle. In 1940, the instructions to the form 1040 were about four pages long. Today, they have ballooned to more than a hundred pages, and the form itself contains more than ten schedules and twenty worksheets. The complete tax code totals about 2.8 million words—about four times the length of War and Peace. The author of this book maintains that America's tax code has become a tangle of loopholes, paperwork, and inconsistencies—a massive social program which fails tests of simplicity and fairness. More important, our tax system has failed to keep pace with the changing economy, creating burdens and wastes of resources that weigh our nation down. The author offers a solution in which most Americans pay no income tax at all, and those who do pay tax enjoy a far simpler tax process, arguing that this is possible without decreasing government revenues or removing key incentives for employer-sponsored health care plans and pensions.Less
To most Americans, the United States tax code has become a vast and confounding puzzle. In 1940, the instructions to the form 1040 were about four pages long. Today, they have ballooned to more than a hundred pages, and the form itself contains more than ten schedules and twenty worksheets. The complete tax code totals about 2.8 million words—about four times the length of War and Peace. The author of this book maintains that America's tax code has become a tangle of loopholes, paperwork, and inconsistencies—a massive social program which fails tests of simplicity and fairness. More important, our tax system has failed to keep pace with the changing economy, creating burdens and wastes of resources that weigh our nation down. The author offers a solution in which most Americans pay no income tax at all, and those who do pay tax enjoy a far simpler tax process, arguing that this is possible without decreasing government revenues or removing key incentives for employer-sponsored health care plans and pensions.
Michael Littlewood
- Published in print:
- 2010
- Published Online:
- September 2011
- ISBN:
- 9789622090996
- eISBN:
- 9789882207455
- Item type:
- chapter
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789622090996.003.0007
- Subject:
- Economics and Finance, South and East Asia
This chapter focuses on Hong Kong's tax system in the 1970s. Murray Maclehose and Philip Haddon-Cave were the two key figures in the colonial administration in the 1970s. In 1976, Maclehose ...
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This chapter focuses on Hong Kong's tax system in the 1970s. Murray Maclehose and Philip Haddon-Cave were the two key figures in the colonial administration in the 1970s. In 1976, Maclehose established a committee to review the tax system—the Third Inland Revenue Ordinance Review Committee. Unlike the First and Second Committees, the Third was intended to review the basic structure of the tax system; and unlike their predecessors, Maclehose and Haddon-Cave committed themselves to a highly visible campaign to institute reform. Ultimately, however, this campaign came to very little: the system's basic schedular structure remained intact; offshore profits remained untaxed, whether attributable to an offshore branch or not; and the plan to introduce a tax on dividends was abandoned. In all three respects, the Ordinance remains unchanged today.Less
This chapter focuses on Hong Kong's tax system in the 1970s. Murray Maclehose and Philip Haddon-Cave were the two key figures in the colonial administration in the 1970s. In 1976, Maclehose established a committee to review the tax system—the Third Inland Revenue Ordinance Review Committee. Unlike the First and Second Committees, the Third was intended to review the basic structure of the tax system; and unlike their predecessors, Maclehose and Haddon-Cave committed themselves to a highly visible campaign to institute reform. Ultimately, however, this campaign came to very little: the system's basic schedular structure remained intact; offshore profits remained untaxed, whether attributable to an offshore branch or not; and the plan to introduce a tax on dividends was abandoned. In all three respects, the Ordinance remains unchanged today.
James A. Mirrlees
- Published in print:
- 2006
- Published Online:
- October 2011
- ISBN:
- 9780198295211
- eISBN:
- 9780191685095
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295211.003.0016
- Subject:
- Economics and Finance, Public and Welfare, Development, Growth, and Environmental
This chapter discusses arguments for public expenditure. It includes discussions on the optimal income tax theory, whether public expenditure is too high or not, and an examination of the UK ...
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This chapter discusses arguments for public expenditure. It includes discussions on the optimal income tax theory, whether public expenditure is too high or not, and an examination of the UK government as a linear tax system.Less
This chapter discusses arguments for public expenditure. It includes discussions on the optimal income tax theory, whether public expenditure is too high or not, and an examination of the UK government as a linear tax system.
Luis Correia Da Silva, Marc Goergen, and Luc Renneboog
- Published in print:
- 2004
- Published Online:
- April 2004
- ISBN:
- 9780199259304
- eISBN:
- 9780191600852
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199259305.003.0005
- Subject:
- Economics and Finance, Financial Economics
Starts by reviewing patterns on dividend policy around the world. It then analyses some of the methodological issues as well as the tax treatment of dividends in Germany. The final part of the ...
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Starts by reviewing patterns on dividend policy around the world. It then analyses some of the methodological issues as well as the tax treatment of dividends in Germany. The final part of the chapter describes the data analysed in Chs. 6–8Less
Starts by reviewing patterns on dividend policy around the world. It then analyses some of the methodological issues as well as the tax treatment of dividends in Germany. The final part of the chapter describes the data analysed in Chs. 6–8
Norman Doe
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199604005
- eISBN:
- 9780191729331
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199604005.003.0008
- Subject:
- Law, EU Law, Comparative Law
A study of national laws in Europe on the property and finances of religion reveals the high degree of cooperation between States and religion in this field. This chapter examines the property of ...
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A study of national laws in Europe on the property and finances of religion reveals the high degree of cooperation between States and religion in this field. This chapter examines the property of religious organizations — the right to acquire, administer, and dispose of property (including partnership between States and religion in preserving the religious heritage of Europe); the protection of sacred places and objects in criminal law (including relics, clerical vesture and human remains and memorials to the dead). It then addresses State financial support for religion, including the church tax systems in some States, allocations from tax liability, direct subsidies for religious objects (such as places of worship, remuneration for ministers of religion, and religious charities), compensation for the confiscation of religious property, and tax exemptions and concessions for religious organizations.Less
A study of national laws in Europe on the property and finances of religion reveals the high degree of cooperation between States and religion in this field. This chapter examines the property of religious organizations — the right to acquire, administer, and dispose of property (including partnership between States and religion in preserving the religious heritage of Europe); the protection of sacred places and objects in criminal law (including relics, clerical vesture and human remains and memorials to the dead). It then addresses State financial support for religion, including the church tax systems in some States, allocations from tax liability, direct subsidies for religious objects (such as places of worship, remuneration for ministers of religion, and religious charities), compensation for the confiscation of religious property, and tax exemptions and concessions for religious organizations.
Michael Littlewood
- Published in print:
- 2010
- Published Online:
- September 2011
- ISBN:
- 9789622090996
- eISBN:
- 9789882207455
- Item type:
- chapter
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789622090996.003.0004
- Subject:
- Economics and Finance, South and East Asia
This chapter discusses the factors which contributed to the failure of the restructuring of the colonial tax system in Hong Kong. First, the yield of the Inland Revenue Ordinance 1947 was greater ...
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This chapter discusses the factors which contributed to the failure of the restructuring of the colonial tax system in Hong Kong. First, the yield of the Inland Revenue Ordinance 1947 was greater than the government had expected and speedily paid off its alleged debt to Britain and went on to accumulate enormous reserves. Secondly, the British government did not insist on the establishment of a normal income tax. Thirdly, Hong Kong's business interests continued to oppose reform and the Chinese business community remained unrelentingly hostile to anything resembling a normal income tax. Lastly, Sir Alexander Grantham, who succeeded Sir Mark Young as Governor in 1947 and served until 1957, also opposed reform and made no attempt to carry out London's instructions. This may be due to the well-known phenomenon of colonial Governors “going native”, and identifying with “their” colonies' interests rather than Britain's.Less
This chapter discusses the factors which contributed to the failure of the restructuring of the colonial tax system in Hong Kong. First, the yield of the Inland Revenue Ordinance 1947 was greater than the government had expected and speedily paid off its alleged debt to Britain and went on to accumulate enormous reserves. Secondly, the British government did not insist on the establishment of a normal income tax. Thirdly, Hong Kong's business interests continued to oppose reform and the Chinese business community remained unrelentingly hostile to anything resembling a normal income tax. Lastly, Sir Alexander Grantham, who succeeded Sir Mark Young as Governor in 1947 and served until 1957, also opposed reform and made no attempt to carry out London's instructions. This may be due to the well-known phenomenon of colonial Governors “going native”, and identifying with “their” colonies' interests rather than Britain's.
