OBJECTIVE To estimate the potential health benefits and cost savings of an alcohol tax rate that applies equally to all alcoholic beverages based on their alcohol content (volumetric tax) and to compare the cost savings with the cost of implementation. DESIGN AND SETTING Mathematical modelling of three scenarios of volumetric alcohol taxation for the population of Australia: (i) no change in ...

We consider a political economy with two partisan parties; each party represents a given constituency of voters. If one party (Labour) represents poor voters and the other (Christian Democrats) rich voters, if a redistributive tax policy is the only issue, and if there are no incentive considerations, then in equilibrium the party representing the poor will propose a tax rate of unity. If, howe...

A theoretical analysis considers the impact of a typical system of redistributive “fiscal equalization” transfers on the taxing effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base reduces those transfers, might be positively associated with the local tax rate while the volume of grants received is lik...

A theoretical analysis considers the impact of a typical system of redistributive “fiscal equalization” transfers on the taxing effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base is reducing those transfers, might be positively associated with the local tax rate while the volume of grants received is...

A theoretical analysis considers the impact of a typical system of redistributive “fiscal equalization” transfers on the taxing effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base is reducing those transfers, might be positively associated with the local tax rate while the volume of grants received is...

n 1958, Nobel Laureates Franco Modigliani and Merton Miller published their famous irrelevance theorems.1 One implication from these theorems is that ers and the U.S. government. Panel A of Figure 1 shows that if the corporate tax rate is 33.3%, the government gets one-third of the pie for an all-equity firm, and stockholders get the remaining two-thirds. But if the firm chooses to finance with...

Policy makers have long been interested in whether tax policies can be used to encourage entrepreneurial activity, but prior studies have produced ambiguous results. We use a twelveyear panel of tax return data to examine the effects of tax rates on entrepreneurial entry. We calculate household-level tax rates and employ multiple measures of entrepreneurship. Our results offer convincing eviden...

SINCE THE PASSAGE of California’s Proposition 13 in 1978, tax and expenditure limitation measures (TELs) have been widely used for altering the revenue systems of state and local governments (Joyce and Mullins 1991). Oregon’s Ballot Measure 5, a TEL passed in 1990, provides an opportunity to (1) identify some of the effects of a TEL on local governments and (2) examine how local officials try t...

L ow tax incomes and the large size of the government in Iran lead into budget deficit, which increases the inflation rate. It also causes economic instability and fluctuations in inflation, leading to tax non-compliance and the transfer of people to the informal economy. Therefore, considering the variables of financial discipline and behavioral factors, this research examines the e...

We present an experimental study on the wasted resources associated with tax evasion. This waste arises from taxpayers and tax authorities, investing costly effort in concealment, respectively detection, of tax evasion. We show that (socially inefficient) efforts depend positively on the prevailing tax rate, but not on the fine which is imposed in case of detected tax evasion. The frequency of ...