Justice Holmes, Ralph Kramden, and the Civic Virtues of a Tax Return Filing Requirement

A major goal of some tax reform proponents is the elimination of the return filing requirement for many or all Americans. Although the President\u27s Advisory Panel on Federal Tax Reform heard several hours of testimony concerning the possibility of a return-free income tax system, the Report of the Panel failed even to discuss the issue. This Article contends that the Panel was right to recommend (by implication) the retention of a return-based tax system, given the Panel\u27s recommendations for major tax simplification. As long as the return filing obligation is not unduly burdensome which it would not be under the Panel\u27s simplification proposals a filing obligation has significant civic virtues. A return-based system represents an appropriate compromise on the level of visibility and painfulness of taxation, and the filing of an tax return can serve an important ceremonial function as an expression of fiscal citizenship. The civic potential of return filing is not now realized because of the tremendous complexity of the income tax, but that potential could be realized under a simplified system

Use tax collections

The article reports on a study which investigated the level of compliance with U.S. state use tax laws and the techniques employed by the states in order to enforce use tax. Most states utilize either of two forms of tax reporting and collection. These are: the introduction of a separate use tax form/return; or the use of a separate line on the state income tax return. It was observed that utilizing a separate line item on the state income tax return might cause a rise in the number of taxpayers

Optimal Income Taxation with a Risky Asset – The Triple Income Tax

We show in a two-period world with endogenous savings and two assets, one of them exhibiting a stochastic return that an interest adjusted income tax is optimal. This tax leaves a safe component of interest income tax free and taxes the excess return with a special tax rate. There is no trade off between risk allocation and efficiency in intertemporal consumption. Both goals are reached. As the resulting tax system divides income into three parts, the tax can also be called a triple income tax. This distinction and a special tax rate on the excess return is necessary in order to have an optimal risk shifting effect.Optimal Taxation, Uncertainty, Consumption Tax, Triple Income Tax

Optimal Income Taxation with a Risky Asset – The Triple Income Tax

We show in a two-period world with endogenous savings and two assets, one of them exhibiting a stochastic return, that an interest-adjusted income tax is optimal. This tax leaves a riskless component of interest income tax free and taxes the excess return with a special tax rate. There is no trade-off between risk allocation and efficiency in intertemporal consumption. Both goals are reached. As the resulting tax system divides income into three parts, the tax can also be called a Triple Income Tax. This distinction and a special tax rate on the excess return are necessary in order to have an optimal risk-shifting effect.optimal taxation, uncertainty, consumption tax, triple income tax

Analisis Pengaruh Beban Pajak Tangguhan Dan Tax To Book Ratio Terhadap Kinerja Perusahaan Manufaktur Di Bei Periode 2014-2016

Tax is a burden that should be minimized by the company. The right way is to do with good tax planning. Good tax planning has an impact on company performance. Therefore, this study aims to determine the effect of deferred tax expense and tax to book ratio on firm performance measured by return on equity. The population in this study are all manufacturing companies listed on the Indonesia Stock Excahange in 2014-2016. While the method of determining the sample using purposive sampling which resulted in 20 companies with a total of 60 samples. Hypothesis testing is done by multiple regression analysis. The results of this study indicate that the deferred tax burden has a significant effect on company performance while tax to book ratio has no significant effect on company performance. Keywords: Return On Equity, Deferred Tax Expenses, Tax to Book Rati

What do Aggregate Consumption Euler Equations Say about the Capital Income Tax Burden?

Aggregate consumption Euler equations fit financial asset return data poorly. But they fit the return on the capital stock well, which leads us to three empirical findings relating to the capital income tax burden. First, capital taxation drives a wedge between consumption growth and the expected pre-tax capital return. Second, capital taxation is the major distortion in the capital market, in the sense that most of the medium and long run deviations between expected consumption growth and the expected pre-tax capital return are associated with capital taxation. Third, consumption growth appears to be pretty elastic to the after-tax capital return (i.e., capital is elastically supplied), even while it appears inelastic to returns on various financial assets. Capital income taxes are passed on through reduced capital accumulation, or higher markups, or some combination.

Seigniorage as a tax: a quantitative evaluation

In this paper we analyze the efficacy of seignorage as a tax associated with various monetary arrangements in a computable general equilibrium model. For the economies examined, we find that seignorage tax is not a good one relative to a tax on labor income. If the after-tax real return is –5 percent, as it was in the 1974–1978 period, welfare is approximately 0.5 percent of consumption lower than it would be if the after-tax return were zero.Fiscal policy ; Taxation

Tax return as a political statement

The accuracy of a tax return is usually interpreted as an outcome of the tax evasion decision by an individual. However, in non-democratic regimes with predatory blackmail tax systems it is possible that large sums voluntarily reported by influential politicians or businessmen may be used as political statements. By openly acknowledging one's personal income an individual can signal the strength of one's position, or, on the contrary, the submissiveness to the political leadership. In this paper we explore the idea of the tax return as a political statement and test it using a unique dataset of the tax returns filed by the Russian regional governors and the members of their families for the year 2009. Our results conjecture that Russian governors may deliberately file their tax return as a political statement to signal their strength vis-à-vis the central government. --tax compliance,communication in non-democracies,Russian regions

Corporate Tax Asymmetries under Investment Irreversibility

This article studies the effects of corporate tax asymmetries on irreversible investment. We discuss an asymmetric tax scheme where the tax base is given by the firm's return, net of an imputation rate. When the firm's return is less than this rate, however, no tax refunds are allowed. Contrary to common winsdom, this asymmetric scheme may be neutral even when assuming a long-lasting income uncertainty. Neutrality holds even if we add both capital and political uncertainty.

Taxing Fracking: Proposals for Ohio's Severance Tax

Outlines the proposal to raise the state's severance tax on oil and gas extracted by fracking and return most of the revenues in income tax cuts, concerns with the proposal, and recommendations for using the severance tax to restore jobs and services