Raising taxes through equalization

Raising taxes through Equalization∗

A simple theory suggests that a common form of federal horizontal equalization grants should cause subnational governments to levy higher tax rates, distorting local tax bases and so increasing federal transfers. To test this, I examine Canadian provincial tax policies in the 1972-2002 period. Consistent with the theory, provinces respond to expansions of equalization transfers by increasing th...

A Dozen Reasons for Raising Gasoline Taxes

Implications of raising cigarette excise taxes in Peru.

Objective To assess how raising cigarette excise taxes in Peru might impact cigarette consumption, and to determine if higher taxes would be regressive. Methods Total demand price elasticity was estimated by income groups using two datasets: quarterly time-series data from 1993 - 2012 and data from a cross-sectional survey of income and expenses conducted in 2008 - 2009 . A functional form of...

Competing in Taxes and Investment under Fiscal Equalization

The paper considers a model of a federation with two heterogeneous regions that try to attract the capital by competing in capital income taxes and public investment that enhance the productivity of capital. The regions’ choices determine the allocation of capital across the regions and their revenues under a tax sharing scheme. This framework allows for the examination of different approaches ...

Raising financing through strategic timing.

We provide further detail on the global nanobiotechnology sample from which our exemplar was drawn, on our methodology for developing a proxy for patent value, and on the North American de novo nanobiotechnology firms which provide context. In section S1, we describe the selection and classification of our global nanobiotechnology sample. In section S2, we argue that the value of a patent to a ...