The authors study the aggregate and distributional effects of several tax reforms in a model that
recognizes this key role and that matches the large wealth inequality observed in the U.S. data. Findings indicate that abolishing the current estate tax would generate a modest increase in wealth inequality and slightly reduce aggregate output.
The author sets forth to answer " what is the impact of the enterprise zone on the rest of the economy and labour". Through the development of a theoretical model, the author shows the relationship between the reservation wage and unemployment rate.
The paper demonstrates that even if some
enforcement of taxation on foreign-source capital income is feasible, a poor enforcement of international taxes would generate political processes that would reduce significantly the domestic- source capital income taxation.
The paper addresses the important question of the extent to which personal and corporate income taxes are used to compensate for sales tax fluctuations within the U.S. states. The results show that one percent increase in the sales tax rate is associated with a half and a third percent decrease in the personal and corporate income tax rates respectively.
The report from the Economic Policy Institute argues that tax breaks and incentives do not stimulate economic growth and create jobs. In addition, the studies that have examined the net effects of simultaneously changing taxes and public spending—arguably those studies that provide the best "real world" measure of the effect of state and local tax cuts—generally find that raising taxes and using the additional revenues to pay for more public services enhances economic growth and expands employment.
The report released by the Rockefeller Institute of Government of the state of New York indicates that state governments collected 8.1 percent more in tax revenues from January through March than they did during that same time period last year. Tax increases and new taxes accounted for some of the growth, however, most was due to improvements in the economy.
The paper studies the relationship between labour taxes and labour costs by modelling the wage formation mechanism in a dynamic context. Findings suggest that there is probably some wage resistance in the short-term but not in the long-term, although the transition to the long-term can be very long and therefore the short-term impact and the dynamics of adjustment can be long-lasting.
This paper analyzes the choice of taxes and international information exchange by governments in a capital tax competition model. It explains situations where countries can choose tax rates on tax savings income and exchange information about the domestic savings of foreigners, implying that the decentralized equilibrium is efficient. It is shown that the recent development in information exchange treaties may not be useful to overcome the inefficiencies caused by decentralized tax setting.
The paper proposes a parsimonious methodology to evaluate the impact of large urban renewal projects on public revenues. The impact is largely endogenous, external to projects and may encompass a broad range of instruments, ranging from local to regional to central governments.
The author explains that many believe the New Markets Tax Credit Program, which aims to stimulate $15 billion in private equity investment in low-income communities, can provide such a conduit. While the program has many strengths, it is still too early to tell whether it will live up to its promise because the initial investments are just beginning to unfold.