Traditional economic analysis implies that because the net externalities from tobacco use are small and tobacco taxes are borne disproportionately by lower-income individuals, taxes on tobacco products should be relatively low. We reexamine these arguments in the framework of a more accurate model of human behavior, where in each period a person has a taste for immediate gratification she would...

Governments impose multiple taxes on foreign investors, though studies of the effect of tax policy on the location of foreign direct investment (FDI) focus almost exclusively on corporate income taxes. This paper examines the impact of indirect (non-income) taxes on FDI by American multinational firms, using affiliate-level data that permit the introduction of controls for parent companies and ...

The paper studies the popular hypothesis that ”hiding” taxes from taxpayers, such as by nominally dividing the payroll tax between employees and employers, leads to higher taxes. To test the hypothesis, I analyze payroll taxes and pension spending in a sample of 89 countries and find that countries where employers nominally pay a higher share of the payroll tax tend to have lower taxes and smal...

This paper considers the role of global environmental taxes both as instruments for improving the global environment and as a source of revenue for funding economic development. It reviews the general case for environmental taxes and the particular issues that arise for the adoption of such taxes in an international setting without a single jurisdiction. It also discusses the possibilities for ...

Gasoline taxes can correct externalities associated with automobile use, reduce dependency on foreign oil, and raise government revenue. Our understanding of the optimal gasoline tax and the efficacy of existing taxes is largely based on empirical analysis of consumer responses to gasoline price changes. In this paper, we directly examine how gasoline taxes affect consumer behavior as distinct ...

57 National Tax Journal Vol. LV, No. 1 March 2002 Abstract Alcohol involvement in auto crashes, homicides, and teen drinking is an important policy concern, and the price of alcohol may have significant effects on these behaviors. Are alcohol taxes quickly and fully passed on to consumers? Given the difficulties of accurately measuring beverage prices, are beer taxes a good empirical proxy for ...

We examine the relative dynamic responses of state personal tax revenues and sales tax bases to changes in state personal income. Our econometric analysis, which includes separate analyses of long-run and short-run dynamics for each state, permits the estimation of asymmetric short-run responses depending upon the relationship between current and expected tax base growth. Results indicate that ...

This study investigates how property taxes a¤ect development timing. A theoretical framework motivates an empirical model that explores how land use change decisions are made over time. A survival model using plot level data is estimated to show how di¤erent factors in‡uence the timing of development of individual parcels. The results suggest that higher taxes slow development, as expected. Wit...

Whereas public information campaigns have failed to reverse the rising trend in obesity, economists support food taxes as they suggest they can force individuals to change their eating behavior and make the agro-food industry think more about healthy food products. Excise taxes based on the unhealthy nutrient content would be more effective since they impact more on unhealthy food products than...

This paper is an attempt to analyze the impact of income taxes and market capitalization on fixed investment (investment in tangible assets) by manufacturing companies listed on KSE. This paper basically examines that how corporate income taxes affect fixed investment by reducing cash flow available for a firm to invest and how the firm size in the lights of market capitalization affects fixed ...