Solomon Movshovich Interview undated

NOTE: to view these items please visit http://dynkincollection.library.cornell.eduUndated interview conducted by Eugene Dynkin with Solomon M. Movshovich

Solomon Movshovich Interview September 10, 1989

NOTE: to view these items please visit http://dynkincollection.library.cornell.eduInterview conducted by Eugene Dynkin with Solomon M. Movshovich on September 10, 1989

Tax Evasion Modeling under Penalties and Refusal of Banks to Grant Loan

The objective of this project is an evaluation of the scale of corruption in the Russian tax system and of economic losses in Russia. The sources of the losses are: tax evasion by corrupt economic subjects; the redistribution of the burden of taxation; the reduction of scales of economy; and the price rises. A comparison of the damage caused by corruption and the burden of taxation allows an evaluation of the effectiveness of state expenditure on the maintenance and expansion of the rating authorities. A general equilibrium approach is applied and the damage is estimated via the sum of compensatory earnings necessary for all subjects

The Marginal Excess Burden of Taxes in the Russian Transition

Taxes distort the equilibrium prices and allocation, the result is efficiency losses, i.e. the decrease of household's utility levels. If taxes change the utility levels also change and additional income is required to compensate these changes. This additional income excesses the increment of tax collection. The difference between additional compensated income (ACI) and increment of collected taxes is called the excess tax burden. Marginal excess burden of tax (MEB) is the ratio of ACI to the increment of tax levies. Here we study MEB on the base of single product static equilibrium models. We have got formula of MEB for all federal taxes in Russian economy. On the base of economic data the efficiency losses were estimated for Russian economy in 1996. The Russian society losses in average 67 kop on each ruble of tax collection. The losses of distributive pension system were equal to 48 kop on every ruble of pension fund. These numbers show that the tax reform is necessary. They show also that excess burden has to be taken in consideration in cost benefit analysis.additional compensatory income; efficacy of the tax system; marginal burden taxation time; single-product statistical model of equilibrium