Taxation for nonprofit societies

The Rationale for Exempting Nonprofit Organizations from Corporate Income Taxation*

Allocation and Taxation in Uncommitted Societies

We analyze the properties of credible equilibria in dynamic settings with privately informed agents, capital accumulation and a lack of societal commitment. We show that a lack of commitment tilts the social tradeoff between equality and incentives towards the former and has ambiguous implications for capital accumulation. We isolate forces that promote and retard capital accumulation in these ...

Growth, inequality and taxation in uncommitted societies

This paper considers the properties and implementation of optimal allocations in settings with private information, but without societal commitment. The environment features a continuum of infinitely-lived agents who exert costly effort that is combined with capital to produce output. These agents receive private shocks to their disutility of effort. They are motivated to truthfully reveal thei...

Asymmetric Taxation in a Competition Between Nonprofit and For-Profit Firms

This paper considers a Cournot competition between a nonprofit firm and a for-profit firm in a homogeneous goods market, with uncertain demand. Given an asymmetric tax schedule, we compute explicitly the Bayesian-Nash equilibrium. Furthermore, we analize the effects of the tax rate and the degree of altruistic preference on market equilibrium outcomes.

Principles for Cigarette Taxation

Cigarette taxes are often the highest excise taxes in terms of their percentage share of the product price. The extent of the excess burden imposed by the tax will increase with the elasticity of demand, which is usually estimated to be between –0.4 and –1.0. Potential rationales for raising the cigarette tax other than as a revenue device include compensation for financial externalities to soc...