Growing inequality in the developed world has led to calls for increasing countries’ top marginal tax rates. Crucially, the optimal top marginal income tax rate depends on people’s tendency to migrate in response to changes in the tax rate. Changes in tax rates and and tax policy must take into account that increases in income tax rates may compel people to leave a country or state. This paper ...

Laffer curve indicates relationship between tax rate and tax income. The aim of this paper is estimating of laffer curve in Iranian economy. To do so, we have used threshold regression method. Empirical results indicate that since the tax rate is low (the threshold value is less than 0.0848) in two-regime model, tax rate and tax income have a significant positive relationship, but when the tax ...

the corporate income tax rate plays a worthwhile role in developing fiscal and tax policies for companies, lawmakers and analysts. so, one of the most important issues in tax field, is to determine effective tax rates. the study and scientific calculations of the effective tax rates provide an enhanced tax justice and a careful study of tax pressure on taxpayers would be possible. the objective...

Taxation and Internal Migration: Evidence from the Swiss Census Using Community-Level Variation in Income Tax Rates We investigate the relationship between income tax rate variation and internal migration for the unique case of Switzerland, whose system of determining tax rates primarily at the community level results in enough variation to permit analysis of their influence on migration. Speci...

The study attempts to estimate the demand for cigarettes in Tanzania and presents simulation results on the effect of the cigarette excise tax on smoking participation, government revenue, and related topics. After briefly summarizing the magnitude and spread of cigarette consumption in the country, the paper reviews some empirical estimates from African and other countries. The 2008 Tanzanian ...

The purpose of this paper is to present an exercise where we identify optimal income tax rules according to various social welfare criteria, keeping fixed the total net tax revenue. To this end, we estimate a microeconomic model with 78 parameters that capture heterogeneity in consumptionleisure preferences for singles and couples as well as in job opportunities across individuals based on deta...

Tax policy encourages charitable contributions during an individual’s life through both the personal income tax and the estate tax. The effect of the income tax on contributions is well known. Because annual charitable contributions reduce the size of an estate, and hence the likely estate tax burden, the estate tax should also affect contributions. Recently, Auten and Joulfaian (1996) studied ...

The federal tax code creates challenges for comparing the profit rates of different banks on a consistent basis. The earnings of banks that elect to operate under subchapter S of the federal tax code are not subject to federal corporate income tax, but shareholders of these “S-banks” are taxed on their pro rata share of the entire earnings of the bank. The number of banks electing subchapter S ...

The dual income tax combines a progressive tax on labor income and a lower flat rate tax on income from capital. Denmark, Finland, $orway, and Sweden adopted dual income taxes to address a set of tax challenges that arose in the late 1980s and early 1990s. Although developing countries face much different economic, political, and tax environments from the $ordic countries, the dual income tax m...

We illustrate a proposal to reform the personal income tax and the family allowance in Italy which aims at attaining a fair tax treatment of the family, laying emphasis on the redistributive processes in favour of large and poor households. Our proposal is based on a simplification of the tax rate schedule (with a reduction of income brackets) and a new design of the tax credits for dependents ...