The impact of tax revenue on economic growth: evidence from nigeria cornelius m ojong1, ii literature review theoretical framework the socio-political theory of taxation states that social and political objectives should be the major. 1 in praise of frank ramsey's contribution to the theory of taxation1 joseph e stiglitz2 frank ramseys brilliant 1927 paper, modestly entitled, a contribution to the theory of taxation, is a. Taxation and economic growth eric engen & jonathan skinner abstract - tax reforms are sometimes income tax cut coupled with a halving of the tax on capital gains, with a either in theory or in the data however, we find that the evidence is consistent with lower taxes having modest positive. Under the benefit theory, tax levels are automatically determined, because taxpayers pay proportionately for the government benefits they receive in other words, the individuals who benefit the most from public services pay the most taxes. The theory of cost-benefit analysis jean dreze and nicholas stern london school of economics 1 basic principles 11 introduction and the programme taxation, incentives and the distribution of income at the london school of survey or summary of the vast literature on the theoretical aspects of the subject.
International taxation by roger h gordon university of california – san diego and nber and in this literature the implications for tax policy of international trade that theory forecasts, and that appear in practice differential income tax rates on profits earned by. A simpler theory of capital taxation emmanuel saez, uc berkeley stefanie stantcheva, harvard july 1, 2016 abstract this paper develops a theory of optimal capital taxation that expresses optimal tax for. The ability to pay theory of taxation (pigou, 1920) is synonymous with the principle of equity or justice in taxation people with higher incomes should pay more taxes than people with lower incomes.
This paper investigates equity theory and tax evasion using the framework of prospect theory pioneered by tversky and kahneman we design an investigation to identify if individual behavior follows the usual results of prospect theory, given a scenario that frames a perception of inequity. The tax compliance behavioural literature indicates that among other factors, demographic variables play an important role in the compliance behaviour of taxpayers. The international tax literature has devoted tremendous resources to considering substantive issues in international taxation little attention, however, has been directed to how conflict is handled - essentially the relations aspect of international tax.
New theory of dividend taxation based on the agency theory of the –rm (jensen and meckling 1976) our model builds on two leading theories of dividend taxation and corporate behavior: 1see auerbach (2003) for a summary of these models and the neoclassical literature on taxes and corporate behavior 1 shareholders on the board of. A theory of taxation and representation andrea mattozzi erik snowberg european university ubc, caltech, institute and move nber, and cesifo [email protected] [email protected] this literature tries to understand the causes and consequences the \ability of politicians. Review of literature 23 habermas’ critical learning theory in particular, it is the emphasis on social change framed within habermas’ epistemology of eman-cipatory knowing, that of knowledge derived from humankind’ s.
The literature on optimal taxation is vast, so the discussion will have to be selec- tive 1 the focus will be on the implications of optimal tax theory for a broad issue that has long been the subject of controversy among economists and policy makers. The theory of tax evasion: a retrospective view 643 national tax journal vol lviil, no 4 the tax evasion literature for the theory of optimal tax design and the analysis of tax administration general perspectives on this part of the theory of taxation the costs of tax administration it is an old insight, going back at least to adam. There is an extensive literature on the determinants of tax compliance by individuals 1 the major impetus for tax compliance research in economic theory is a seminal paper by allingham and.
The standard theory of optimal taxation posits that a tax system should be chosen to maximize a social welfare function subject to a set of constraints the literature on optimal. The approach of the optimal taxation literature is to use economic analysis to combine these criteria into one, implicitly deriving the relative weights that should be applied to each criterion. During the 1980s structured research into tax evasion and non-compliance became widespread following the political concerns in the united states of an increasing “tax gap” initially, the literature which emerged from the united states had a strong focus on economic theory utility theory. A literature review on optimal indirect taxation and the uniformity debate references ahmad, e and n stern (1984), the theory and practice of tax reform in de veloping countries , cam.
The literature on optimal taxation is vast, so my discussion will have to be selective 2 i will focus on the implications of optimal tax theory for a broad issue that has long been the subject of controversy among economists and policy makers. 14 2 tax compliance theory and the literature variable of deterrence, which comprises the likelihood of being caught and the range of penalties applied to those who are caught, and the psychological variables, including moral values and the perceptions of equity and fairness held by taxpayers. Tax foundation methodology bound to produce a meaningless result the tax foundation report examined a number of academic studies and stated whether each found that taxes had a “positive,” “neutral,” or “negative” effect on growth.