Using a two-agent model comprised of capitalists and workers, this paper examines the importance of imperfect competition in product and labour markets in determining the welfare effects of tax reform. The reform considered consists of eliminating the capital tax alongside a concurrent rise in the labour tax. In contrast to the perfectly competitive model, models with product or labour market f...

This paper analyses the effects of the recent Finnish income tax reform on the behaviour of a closely held corporation (CHC) and its owners. The main elements of the reform are cuts in corporate and capital income tax rates and the replacement of the current full imputation system by a partial double taxation of distributed profits. Considerable exemptions are applied to relieve the taxation of...

This paper presents an application of the collective model of labour supply, allowing for labour participation and non-linear budget sets. To identify the model, some preference parameters are estimated, while some other key parameters are calibrated so as to replicate as best as possible observed labour supplies under the 1994 personal tax system in Spain. The model is used to simulate the imp...

To finance basic pro-poor services, the Government of Ghana must mobilize more public revenue. But tax reform has been highly controversial in Ghana. An attempt to introduce VAT in 1995 failed after widespread protests. Although a second attempt to introduce VAT in 1998 succeeded, strong resistance to tax reform remains, and the total tax base remains narrow and over-dependent on petroleum taxe...

This paper examines the role of evidence in drawing up the recommendations for tax reform in the Mirrlees Review. The arguments are organised loosely under five related headings: (i) Key margins of adjustment, (ii) Measurement of effective tax rates, (iii) The importance of information and complexity, (iv) Evidence on the size of responses, and (v) Implications from theory for tax design. Altho...

Both the ratios of the labor remuneration and the residents’ income are too low in Chinese national income distribution. In order to resolve this prominent problem, the Chinese authority should attach great importance to the tax adjustment for realizing the positive effect of the distributive justice. Therefore, the objective of the Individual Income Tax reform is to strengthen its function on ...

It is suggested that instead of attempting to adjust the consumer price index (CPI) after tax reform it is better to measure changes in after-tax income.

a r t i c l e i n f o This paper considers the implications of environmental tax reform and public spending policy for growth and welfare. Using a two-sector endogenous growth model where the interactions between health, education, and the environment are taken into account, we show that revenue-positive tax reforms combined with a change in the public spending structure may improve long-run gr...

This paper reassesses the burden of the current U.S. international tax regime and reconsiders well-known welfare benchmarks used to guide international tax reform. Reinventing corporate tax policy requires that international considerations be placed front and center in the debate on how to tax corporate income. A simple framework for assessing current rules suggests a U.S. tax burden on foreign...