state revenue

Not only transition countries but also a large number of developing (and developed) countries have established free economic zones with the aim of attracting foreign capital by providing tax incentives, creating employment opportunities and promoting exports as well as regional development. In this study the theoretical approach is accompanied by a model simulation based on selected parameters.

The Corporate Income Tax in Jamaica is an important source of revenue, according to the author. In 2002, the share of CIT in total tax revenue was approximately 6.9 percent, having fallen from 12.7 percent in 1993. Although OECD countries generally collect about 10 percent of tax revenue from corporate taxes, the downward trending share exhibited by the CIT in Jamaica is generally consistent with international experience.

This paper studies the challenges of raising tax compliance in the small business sector in transition economies, drawing from the experience of Bulgaria. It identifies the elements of tax design and enforcement that discriminate against the small business and drive non-compliance.

Venture capitalists have helped create vibrant entrepreneurial economies in cities and regions such as Silicon Valley, Route 128 in Massachusetts, Austin and San Diego. In recent years, a few states without this established equity investor base and seeking community economic development have adopted tax incentives for direct investment into local businesses and/or into seed capital funds. This paper examines the eighteen states that have adopted such tax credit programs.

The paper analyses the impact of tax sparing agreements on Japanese foreign direct investment (FDI) distribution in developing countries. The empirical results suggest that each additional year, subsequent to the signature of a tax sparing agreement, increases Japanese FDI activity by 1.7 to 11 percent.

State policies resulting from the tax revolt of the late 1970s play an important role in determining the timing and magnitude of the decline in state tax effort for higher education, according to the authors. They explain that an understanding of the fiscal environment caused by these provisions is critical for the future of state-supported higher education.

The paper reviews the economic and administrative issues that arise in the taxation of electronic commerce; addresses how best to meet the criteria of an ideal tax system; and examines recent policy developments.

The authors examine the impact of tax policy uncertainty on the irreversible investment decisions of a monopolistically competitive firm. They also examine changes in the average levels of investment and its variability over short- and long-run horizons, considering a general 3-state process, a log-normal process, and a Poisson process.

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. Results show that a one percent decrease in the sales tax revenue per capita is associated with a 3 percent or a 0.9 percent increase in the corporate and personal income tax revenue per capita, respectively.

The paper examines the effects of state corporate income taxes on the location of foreign direct investment, taking into account the state governments behavior when setting taxes.