The Value Added Tax: Its Causes and Consequences

Almost unknown in 1960, the value added tax (VAT) is now found in more than 130 countries, raises around 20 percent of the world’s tax revenue, and has been the centerpiece of tax reform in many developing countries. This paper explores the causes and consequences of the remarkable rise of the VAT. A key question is whether it has indeed proved, as its proponents claim, an especially effective form of taxation. To address this, it is first shown that a tax innovation—such as the introduction of a VAT—reduces the marginal cost of public funds if and only if it also leads an optimizing government to increase the tax ratio. This observation leads to the estimation, on a panel of 143 countries for 25 years, of a system of equations describing both the probability of VAT adoption and the revenue impact of the VAT. The results point to a rich set of determinants of VAT adoption, this being more likely, for example, if a country has a program with the IMF and the less open it is to international trade. In the revenue equation, the presence of a VAT does indeed have a significant impact, but also a complex one, with a negative intercept effect counteracted by positive effects that are greater the higher are per capita income and, more tentatively, openness. While the sign of the revenue impact of the VAT is thus in general ambiguous, most countries that have adopted a VAT seem to have gained a more effective tax instrument in doing so (though this is less apparent in sub-Saharan Africa), and most without it seem likely to gain from its adoption.Value added tax; tax reform

The Value Added Tax : Its Causes and Consequences

Almost unknown in 1960, the value added tax (VAT) is now found in more than 130 countries, raises around 20 percent of the world’s tax revenue, and has been the centerpiece of tax reform in many developing countries. This paper explores the causes and consequences of the remarkable rise of the VAT. A key question is whether it has indeed proved, as its proponents claim, an especially effective form of taxation. To address this, it is first shown that a tax innovation—such as the introduction of a VAT—reduces the marginal cost of public funds if and only if it also leads an optimizing government to increase the tax ratio. This observation leads to the estimation, on a panel of 143 countries for 25 years, of a system of equations describing both the probability of VAT adoption and the revenue impact of the VAT. The results point to a rich set of determinants of VAT adoption, this being more likely, for example, if a country has a program with the IMF and the less open it is to international trade. In the revenue equation, the presence of a VAT does indeed have a significant impact, but also a complex one, with a negative intercept effect counteracted by positive effects that are greater the higher are per capita income and, more tentatively, openness. While the sign of the revenue impact of the VAT is thus in general ambiguous, most countries that have adopted a VAT seem to have gained a more effective tax instrument in doing so (though this is less apparent in sub-Saharan Africa), and most without it seem likely to gain from its adoption.Value added tax ; tax reform

HORIZONTAL AND VERTICAL INDIRECT TAX COMPETITION : THEORY AND SOME EVIDENCE FROM THE USA

This paper provides a simple theoretical framework for analyzing simultaneous vertical and horizontal competition in excise taxes, and estimates equations informed by the theory on a panel of US state and federal excise taxes on cigarettes and gasoline. We also examine the role played by smuggling. The results are generally consistent with the theory, when the characteristics of the markets for the goods are taken into account. For neither good do federal excise taxes affect state taxes. Taxes in neighboring states have a significant and large effect in the case of cigarettes, and a much weaker effect in the case of gasoline. we also find that in the setting of cigarette taxes, concerns about cross-border shopping play a more important role than concerns about smuggling.tax competition ; excise taxes ; cross-border shopping ; smuggling

The size and shape of the oblong dwarf planet Haumea

We use thermal radiometry and visible photometry to constrain the size, shape, and albedo of the large Kuiper belt object Haumea. The correlation between the visible and thermal photometry demonstrates that Haumea's high amplitude and quickly varying optical light curve is indeed due to Haumea's extreme shape, rather than large scale albedo variations. However, the well-sampled high precision visible data we present does require longitudinal surface heterogeneity to account for the shape of lightcurve. The thermal emission from Haumea is consistent with the expected Jacobi ellipsoid shape of a rapidly rotating body in hydrostatic equilibrium. The best Jacobi ellipsoid fit to the visible photometry implies a triaxial ellipsoid with axes of length 1920 x 1540 x 990 km and density 2.6 g cm^-3$, as found by Lellouch et al(2010). While the thermal and visible data cannot uniquely constrain the full non-spherical shape of Haumea, the match between the predicted and measured thermal flux for a dense Jacobi ellipsoid suggests that Haumea is indeed one of the densest objects in the Kuiper belt.Comment: 21 pages, 2 figures, 2 tables -- Accepted for publication in Earth, Moon and Planet

Luther on Idolatry: A Lutheran Response to Contemporary False Belief

Lockwood, Michael A. Luther on Idolatry: A Lutheran Response to Contemporary False Belief. Ph.D. diss., Concordia Seminary, 2013. 303 pp. The first step in solving any problem is to understand the problem. As Christians we know that Christ is the solution to the human plight. Yet what exactly is this plight? And why do so many people feel no need for the solution he provides? Luther\u27s answer is that people feel no need for the true God until they are disenchanted with the false gods they have put in his place, which they think can provide all they need. In this dissertation I examine Luther\u27s insights into idolatry, and use them as a tool for understanding contemporary society and its resistance to the gospel. Luther\u27s view—that anything we fear, love, or trust more than the true God is effectively our god—is widely applicable to the contemporary western world, and unmasks the religious nature of many of our ostensively secular commitments. In particular, I argue on the basis of Luther\u27s thought that: (1) the self-seeking and self-reliant self is always the greatest idol and the driving force behind other idols; and (2) when people refuse to fear, love, and trust the true God they are compelled to find substitutes for him and all the work he does for humankind in the economy of salvation. This means finding substitutes for the Father and his work of providence, the Son and his work of redemption, and the Holy Spirit and his work of enlightening those who believe. It also means replacing God as the goal of our life and the object of our love. Applied to contemporary society, Luther\u27s analysis reveals things like human activism, the cult of self-esteem, human rationalism, and the pursuit of personal happiness to be key idols, as we seek to provide for ourselves, to justify ourselves, to walk in the light of our own understanding, and to make the world revolve around us and our desires. Only when the futility of these projects is exposed can the good news be heard as good news: that the true God gives us by grace all the good things we have vainly sought to provide for ourselves

The relation of Indian thought to Pythagoreanism

Thesis (M.A.)--Boston UniversityThis thesis examines the relation of Indian thought to Pythagoreanism. Two scholars, in particular, have dealt at length with this subject. Richard Garbe has maintained that Indian thought has had important influence on Pythagoreanism. Sir Arthur B. Keith has argued that this is not so. This thesis investigates the relation of Indian thought to Pythagoreanism in terms of a critique of thesetwo positions and in the light of more recent studies. After an introductory chapter, the arguments affirming general Indian-Greek influence are examined in Chapter Two. Chapter Three deals with the relation of Indian thought to Pythagoreanism. A concluding chapter evaluates the positions taken in regard to the problem of parallel doctrines

Book reviews

Teaching/Communication/Extension/Profession,

DO COUNTRIES COMPETE OVER CORPORATE TAX RATES?

This paper tests whether OECD countries compete with each other over corporate taxes in order to attract investment. We develop two models: with …rm mobility, countries compete only over the statutory tax rate or the e¤ective average tax rate, while with capital mobility, countries compete only over the e¤ective marginal tax rate. We estimate the parameters of reaction functions using data from 21 countries between 1983 and 1999. We …nd evidence that countries compete over all three measures, but particularly over the statutory tax rate and the e¤ective average tax rate. This is consistent with a belief amongst governments that location choices by multinational …rms are discrete. We also …nd evidence of concave reaction functions, consistent with the model outlined in the paper.tax competition ; corporate taxes ; effective average tax rate ; effective marginal tax rate

Una primera aproximació a la riquesa específica dels odonats al Parc Natural de la Zona Volcànica de la Garrotxa

Es van detectar 35 espècies d'odonats al Parc Natural de la Zona Volcànica de la Garrotxa (NE península Ibèrica; PNZVG) entre el 2002 i el 2003, dels quals 27 van ser observades als estanys de Can Jordà. Intentem explicar tanta riquesa específica mitjançant una anàlisi de tres factors. Primer, el PNZVG es troba en una cruïlla de dues regions biogeogràfiques, cosa que confereix molta diversitat al Parc Natural i a la comunitat d'odonats que hi viu. Segon, els voltants dels ambients aquàtics del PNZVG són diversos i hi ha una barreja d'hàbitats a prop que satisfà les preferències ecològiques d'un bon grapat d'espècies. Tercer, hi ha una diversitat notable de classes d'hàbitats aquàtics al PNZVG, alguns amb la qualitat de l'aigua molt alta. Es comenta al final que cal entendre el perquè de tanta riquesa específica per tal d'incidir en la gestió i creació d'hàbitat per als odonats al PNZVG i a altres espais protegits.A total of 35 species of odonata (dragonflies and damselflies) were recorded from the Natural Park of the Volcanic Zone of La Garrotxa (NE Iberian Peninsula; PNZVG) in 2002 and 2003, of which 27 were observed at Els Estanys de Can Jordà. Three factors were considered in explaining this species-richness. First, the PNZVG is located at a confluence of biogeographical regions, a fact which ensures that there is great variety in the habitat type in the natural park and therefore in the odonata that fly there. Secondly, the habitat surrounding the wetlands in the natural park is very varied and satisfies the ecological needs of a great variety of species. Lastly, the wetlands themselves in the PNVZG are very varied, and have good water quality. At the end we comment that only by understanding the reasons for such great species-richness can habitat be managed for odonata in the PNVZG and elsewhere.Se detectaron 35 especies de odonata en el Parque Natural de la Zona Volcánica de La Garrotxa (NE península Ibérica; PNZVG) entre 2002 y 2003, de las cuales 27 se observaron en la zona de los estanques de Can Jordà. Este artículo intenta explicar tanta riqueza específica mediante un análisis de tres factores. Primero, el PNZVG se encuentra en un cruce de dos regiones biogeográficas, lo cual implica mucha diversidad natural. Segundo, los entornos de los ambientes acuáticos del PNZVG son diversos y hay una buena representación de diferentes hábitats que satisfacen las preferencias ecológicas de muchas especies. Tercero, dentro de los tipos de hábitat acuático en el parque, hay también una buena diversidad, algunas con una calidad de agua muy alta. Se comenta al final que hay que estudiar esta riqueza específica para influir más en la gestión y la creación de hábitat para los odonata en el parque y otros espacios protegidos

An analysis of U.S./Canadian fisheries policy in regards to Pacific salmon and the preservation of indigeneity in the Pacific Northwest

For more than 160 years, the Pacific salmon has been an important resource for the United States and Canada. However, it has been overexploited. Proper management of the species is essential not only for maintaining healthy populations but also maintaining the interests of diverse stakeholders. One set of stakeholders consists of the indigenous peoples of North America because the Pacific salmon are crucial to their food, social, and ceremonial traditions. This thesis explores the impacts of Canadian and U.S. public policies on the cultural integrity of native peoples in the Pacific Northwest, specifically as those peoples rely on wild Pacific salmon for key cultural attributes. Indigenous peoples of the Pacific Northwest have historically depended on the salmon resource as a source of sustenance, trade, and spirituality. A “desk study” was conducted for this thesis using literature resources. A “matched pairs case study” was utilized to compare and contrast United States and Canadian fisheries policy impacts on their respective indigenous cultures. It analyzes nine indigenous tribes throughout the region and assesses the impacts based on seven cultural traits. Each relevant cultural trait was evaluated on its current state and the degree of impact caused by policy. The findings suggest that Canada has better accommodated the rights of its indigenous peoples because it actively incorporated these rights into federal legislation, wild salmon policies and strategies, and modern-day treaty-making. However, both Canada and the United States have unique policy issues that include how to create effective co-management schemes and equally distribute fish catch between indigenous and non-indigenous fishing interests. The hope is that policy makers will use this information to better understand the impacts of fisheries management on indigenous peoples and make policy decisions that better accommodate their needs