Built-in Flexibility of Taxation and Stability when Tax Liabilities Respond with a Time Lag
ثبت نشده
چکیده
I my earlier paper (Smyth, 1975b) I combined a distributed lag or permanent income consumption function with a lagged tax function. Bradley (1976) disputes my finding that short, two-period, oscillations may result and that consequently the presence of built-in flexibility of taxation may be destabilising rather than stabilising. Bradley reaches his conclusion by limiting consideration to parameter values that he regards as plausible. I shall demonstrate that there is empirical evidence that conflicts with that advanced by Bradley, evidence that gives parameter values consistent with oscillations and destabilisation. The crucial point at issue is the sign and the size of the root (1) above. This root is obtained using the following expression for permanent income, Yp in time period t
منابع مشابه
A Note on Built-in Flexibility of Taxation and Stability when Tax Liabilities respond with a Time Lag*
Precis: Given tax rates, tax revenues rise as income rises. This p roper ty o f a tax system is k n o w n as " b u i l t i n flexibility o f taxa t ion" and i t is w i d e l y regarded as a stabilising force. The present paper analyses a mode l i n w h i c h tax liabilities are a lagged funct ion o f income and con sumption adjusts to disposable income either w i t h or w i t h o u t t ime lag...
متن کاملProviding a Model for Detecting Tax Fraud Based on the Personality Types of Corporate Financial Managers using the Neural Network Approach
One of the management measures to reduce tax liabilities is non-payment of taxes through tax fraud. Because personality factors may play a role in explaining tax ethics, examining personality traits and aspects of tax fraud can help to better understand the factors that influence tax decisions. The main purpose of this study is to provide a model for detecting tax fraud based on the personality...
متن کاملAnalysis of the Impact of Income Tax on Income Distribution Using autoregressive distributed lag (ARDL) Method (Case study of Tehran province)
Revenue distribution and efforts to improve it is one of the most important issues facing governments. Income distribution is affected by important factors. Economic justice and equitable distribution of income, along with important issues such as economic growth and development, reducing inflation and unemployment, have always been of interest to economists. Equitable distribution of income an...
متن کاملEvaluation of Monetary and Fiscal Policy Based on New Keynesian Dynamic General Equilibrium Model in Iran’s Economy
This paper examines monetary and fiscal policy through the estimation of a New-Keynesian dynamic general equilibrium model for Iran’s economy. In this New-Keynesian dynamic general equilibrium model, the consumers encounter the liquidity constraint and the firms face sticky prices, while they are changing them. In the model presented, a role is considered for both government spending and taxati...
متن کاملPetroleum Tax Regime in Iran
Taxation is one of the significant phenomena in any economy as it not only generates revenues for existing government, but also serves as a fiscal tool and stabilization policy. One of the main types of taxation is the petroleum tax which accounts for more than 30% of revenue for developed countries and more than 85% for developing economies. This work focuses on petroleum producing giants in ...
متن کامل