A well-crafted retail sales tax on all goods and services could replace all 36 other state-level taxes in Kansas— including the personal and corporate income taxes. The tax rate could be eight percent (8%) or less, after the state government makes budget adjustments related to the recent recession-driven revenue shortfalls. Such a bold move holds the promise of making Kansas one of the most gro...

Literature in tax avoidance indicates that the proceeds of tax avoidance can be invested on production affairs, which in turn enhance the future expected cash flow, thereby reducing the cost of equity. Based on this reasoning, the present study aims to examine whether tax avoidance is associated with the cost of equity with emphasis on the moderating effect of outside monitoring. To calculate t...

Historically, the Islamic state collected zakat (similar to the tithe of other regions) as national income. In Indonesia, the private sector can raise zakat funds more effectively than the government. In 2010, zakat became tax-deductible income. This paper tries to analyze some factors that affect preference for zakat as a tax deduction in Indonesia. The effectiveness of the regulation is also ...

When product markets are monopolistic, an income redistributive policy affects social welfare not only through changes in disposable income but also through changes in product prices. In the optimal income tax formula, we then obtain a Pigouvian term correcting for this price externality. We provide sufficient conditions when the Pigouvian term is progressive among top earners. Moreover, if the...

OBJECTIVES This paper investigates sociodemographic and family structure factors that predict men's involvement (n = 773) in different gendered dimensions of filial caregiving: traditionally male, gender neutral, and traditionally female care. METHODS The concepts that guide this research relate to family obligations or motivations to provide care, specifically, commitment to care, legitimate...

Can Taxes Stabilize the Economy in the Presence of Consumption Externalities? Considering a finance constrained economy, we discuss the stabilization role of variable labour and capital income taxes under a balanced-budget rule in the presence of consumption externalities of the “keeping up with the Joneses” type. We find that sufficiently procyclical labor and/or capital income taxes are able ...

Introduction The role of education in local, state and national economic development has become a central public policy issue in recent years. Rural localities, in particular, which typically have lower education levels among the adult population than urban areas, view increased educational investments as an important component of an economic development strategy. At the same time, rural commun...

I use data from the 1994 Consumer Expenditure Survey as well as other sources to measure the distributional impact of green tax reforms and consumption tax reforms using both annual income and lifetime income approaches to rank households. A modest tax reform in which environmental taxes equal to 10% of federal receipts are collected has a negligible impact on the income distribution when the f...

This paper examines a firm’s investment intensity and timing decisions using a real options approach. The firm is endowed with a perpetual option to invest in a project at any time by incurring an irreversible investment cost at that instant. The amount of the irreversible investment cost determines the intensity of investment with decreasing returns to scale. The project generates a stream of ...

This paper studies the effects of effluent taxes on firms’ allocation of resources to cost-reducing and emission-reducing R&D, and on entrepreneurs’ decisions to develop new goods and enter the market. A tax set at an exogenous rate that does not depend on the state of technology reduces growth, the level of consumption of each good, and raises the number of firms. The induced increase in the v...