Found 23 article(s) for author 'Taxation'

How Best to Tax Business

How Best to Tax Business. N. Gregory Mankiw, April 23, 2017, Opinion, “The details of the tax code may not make your heart sing, but they are enormously important and, at long last, they may be changing. In fact, the next 12 months are shaping up to be a critically important time.  Despite an uneven start, tax reform is on the agenda in Congress. And the ideas being considered, especially regarding business taxation, are not mere tweaks to our ossified system. They would profoundly alter how the government raises money and upend the incentives for private decision makers. This is fascinating to tax policy nerds like me. But it is important for everyone to understand.Link

Tags: , , , , , ,

Optimal Taxation and Insurance Using Machine Learning

Optimal Taxation and Insurance Using Machine Learning. Maximilian Kasy, April 10, 2017, Paper, “How should one use (quasi-)experimental evidence when choosing policies such as tax rates, health insurance copay, unemployment benefit levels, class sizes in schools, etc.? This paper suggests an approach based on maximizing posterior expected social welfare, combining insights from (i) optimal policy theory as developed in the field of public finance, and (ii) machine learning using Gaussian process priors. We provide explicit formulas for posterior expected social welfare and optimal policies in a wide class of policy problems.Link

Tags: , , , , , , ,

Defending Worldwide Taxation with a Shareholder-Based Definition of Corporate Residence

Defending Worldwide Taxation with a Shareholder-Based Definition of Corporate Residence. Stephen Shay, March 5, 2017, Paper, “This Article argues that a principled, efficient, and practical definition of corporate residence is necessary even if some form of corporate integration is adopted, and that such a definition is a key element in designing either a real worldwide or a territorial income tax system as well as a potential restraint on the inversion phenomenon. The Article proposes that the United States adopt a shareholder-based definition of corporate residence that is structured as follows:…Link

Tags: , , , , , ,

The House GOP’s Good Tax Trade-Off

The House GOP’s Good Tax Trade-Off. Martin Feldstein, January 5, 2017, Opinion, “Taxes are one of life’s certainties, and this year so is business tax reform. The tax plan developed by the House Republicans is similar in many ways to President-elect Trump’s plan but has one additional favorable feature—a border tax adjustment that exempts exports and taxes imports. This would give the U.S. the benefit that other countries…Link

Tags: , ,

Two Cheers for the Foreign Tax Credit, Even in the BEPS Era

Two Cheers for the Foreign Tax Credit, Even in the BEPS Era. Stephen Shay, November November 2016, Paper, “Reform of the U.S. international income taxation system has been a hotly debated topic for many years. The principal competing alternatives are a territorial or exemption system and a worldwide system. For reasons summarized in this Article, we favor worldwide taxation if it is real worldwide taxation; that is, a non-deferred U.S. tax is imposed on all foreign income of U.S. residents at the time the income is earned. However, this approach is not acceptable unless the resulting double taxation is alleviated. The longstanding U.S. approach for handling the international double taxation problem is a foreign tax credit limited to the U.S. levy on the taxpayer’s foreign income.Link

Tags: , , , , , ,

Intergenerational Mobility and Preferences for Redistribution

Intergenerational Mobility and Preferences for Redistribution. Alberto Alesina, October 26, 2016, Paper, “Using newly collected cross-country survey and experimental data, we investigate how beliefs about intergenerational mobility affect individuals’ preferences for redistribution. We start by documenting the anatomy of views on mobility, fairness, the government, and redistribution across five countries: France, Italy, Sweden, the U.S., and the U.K. We show that Americans are more optimistic than Europeans about intergenerational mobility, and are generally too optimistic relative to reality, especially about the chances of making it from the very bottom to the very top quintile.Link

Tags: , , , , , ,

Health and Taxes

Health and Taxes. David Cutler, October 25, 2016, Paper, “Viewing health care through the lens of a social issue prompts such questions as: What policies would best improve the population’s health? How can report cards be used to improve the quality of surgery? Where are there opportunities for additional disease prevention? The questions here are intricate and detailed. Some of the issues are clinical, and advice from physicians is actively sought and welcomed. For example, no one would develop a pay-for-performance system for surgeons without extensive involvement of the relevant surgical societies.Link

Tags: , , , , , , ,

Meet the Oligarchs: Business Legitimacy, State Capacity and Taxation

Meet the Oligarchs: Business Legitimacy, State Capacity and Taxation. Rafael Di Tella, June 11, 2016, Paper, “We analyze the role of people’s beliefs about the rich in the determination of public policy. A question we study is the desirability of government-private sector meetings, a variable we argue is connected to State capacity. Survey respondents primed with negative views about business leaders want fewer of these meetings, as well as higher taxes to the top 1% and more regulation. We also study how these effects change when subjects are primed with negative views about government. A model helps interpret these findings.Link

Tags: , , , , , ,

Tax Aversion in Labor Supply

Tax Aversion in Labor Supply. Michael I. Norton, April 2016, Paper. “In a real-effort laboratory experiment, labor supply decreases more with the introduction of a tax than with a financially equivalent drop in wages. This “tax aversion” is large in magnitude: when we decompose the productivity decrease that arises from taxation, we estimate that 40% is due to the lower net wage and the remaining 60% to tax aversion. This tax aversion affects labor supply more on the extensive margin (working less) than on the intensive margin (being less productive while working). The aversion is equally strong whether tax revenue goes to the U.S. government or back to the experimenter (a “laboratory tax”). We discuss the implications of our results for the relationship between labor supply and taxation.Link

Tags: , , , , ,