To encourage home ownership, the United States tax code treats the financing and sale of housing differently from most other goods. For example, the interest payments on your home mortgage and your property taxes are deduct-ible from your federal income taxes while the interest on your credit card bill for your vacation to Paris is not. Furthermore, the profit you make on the sale of your house...

Taiwan, Republic of China (ROC), introduced a new income tax system, combining corporate and personal income taxes, on 1 January 1976. This new tax system, resembling those used in many European countries, has had a significant impact on the debt/equity capital structure of companies domiciled in Taiwan. This study provides historical background concerning taxing policies, an analysis of the ne...

income taxes is approximately $1.565 million, implying an aggregate annual compliance cost of over $2 billion. As a fraction of revenue raised, these compliance costs are lower than estimates that have been made for the individual income tax. The cost-to-revenue ratio is higher for state corporate tax systems than it is for the federal tax system, presumably reflecting the nonuniformity of stat...

U.S. employment-based health benefits are exempt from income and payroll taxes, an exemption that provided tax subsidies of $326.2 billion in 2015. Both liberal and conservative economists have denounced these subsidies as “regressive” and lauded a provision of the Affordable Care Act—the Cadillac Tax—that would curtail them. The claim that the subsidies are regressive rests on estimates showin...

According to conventional economic wisdom, capital income taxes should be low. The purpose of this paper is to cast doubt on this general conclusion and to show theft theory can also point in the opposite direction. The paper shows that under rather mild conditions, higher capital income taxes lead to faster growth in an overlapping generations economy with endogenous growth. Government expendi...

Theories of political redistribution are tested using data collected in three phases of the International Social Survey Programme. Individuals categorized as having high, middle, or low incomes were asked whether they consider the overall tax burden in their countries too high, too low or about right. Very few citizens indicated that they were satisfied with tax systems; most believed that taxe...

We construct a general equilibrium trade model of a two-class small open host or source country. When consumption tax revenue finances the provision of a public good, marginal migration reduces social welfare in the source country and raises it in the host. When consumption tax revenue is equally distributed among domestic households in each country, then migration has an ambiguous impact on so...

Higher welfare support levels diminish the relative value of education according to standard economic theory. However, studies based on the negative income tax experimentshavefound that higher welfare support levels increase participation in the educational system. This study examines a nonexperimental source of data to determine the effect of higher expected state-level welfare benefits on hig...