Impact of Direct Taxation on Economic Growth: Empirical Evidence Based on Panel Data Regression Analysis at the Level of Eu Countries

Through fiscal policy, the government can influence businesses and individuals in order to regulate their behaviour. The research used panel data from all 27 EU countries covering the period 2008–2020 to investigate the impact of direct taxation on economic growth at the level of two main clusters of countries concerning fiscal efficiency. Therefore, the analysis employed cluster methods to classify the main EU countries in both groups of countries with a high level of fiscal efficiency and those with a rather limited level of fiscal efficiency. The study employs fixed effect models and dynamic GMM methods to investigate the effect of direct taxation components (personal and corporate income taxes) on economic growth. The analysis also considers the informal economy's role in relation to the official economy. The empirical results revealed that corporate income taxes significantly negatively impact economic growth for both clusters of high- and limited fiscal efficiency countries. Additionally, personal income tax was associated with lower economic growth for countries in the limited fiscal efficiency group. Thus, from the perspective of policymakers, lowering direct taxation can increase disposable income, stimulate consumption and economic growth, encourage investment leading to job creation, increase competitiveness, and reduce tax evasion and avoidance, thereby leading to a more efficient tax system.

Peculiarities and Prospects of Investment Activities in the Conditions of the Global World Crisis

According to the International Monetary Fund, FDI is an investment that is formed to ensure the long-term interest of the investor in enterprises operating in another country. FDI is a critical factor of external financing for developing countries as they can receive financing from more affluent countries (Yang & Shafiq, 2020). [...]FDI offers various benefits to the country, such as providing long-term capital necessary for the economic development of the host country, creating new jobs, introducing innovative and new technologies, providing greater access to foreign markets, introducing new management skills, attracting companies from innovative sectors, etc (Misra, 2012). FDI supports a country's economic development by strengthening its human capital and fostering innovation and competition, contributing to technological progress and productivity. [...]FDI leads to overall economic growth in the country (Grossman, Helpman, 1991). According to the definition provided by the United Nations Conference on Trade and Development (UNCTAD, 2022), tax incentives are opportunities that reduce the tax burden of a party and encourage them to invest in a relevant project or sector of the economy.

Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants

Este trabajo analiza el impacto de la crisis del COVID-19 en la informalidad de las micro, pequeñas y medianas empresas argentinas a partir de la percepción de empresarios comerciales y contadores públicos de la ciudad de Bahía Blanca (Argentina). Utilizando datos primarios recopilados a través de entrevistas semiestructuradas, se realizó un análisis de contenido cualitativo combinando codificación basada en teoría y basada en datos. A pesar del uso generalizado de pagos electrónicos, los hallazgos sugieren un aumento tanto en la subdeclaración de ingresos como en la cantidad de empresas no registradas, lo que respalda el comportamiento contracíclico del sector informal durante dicha crisis. El artículo contribuye a una mayor comprensión de la informalidad a través de un enfoque microeconómico-cualitativo e integrando la perspectiva de dos actores diferentes. Los resultados son relevantes para la formulación de políticas tendientes a la reducción de la informalidad empresarial.Alternate abstract:Este artigo analisa o impacto da crise do COVID-19 na informalidade das micro, pequenas e médias empresas argentinas com base na percepção de empresários comerciais e contadores públicos da cidade de Bahía Blanca (Argentina). Utilizando dados primários coletados por meio de entrevistas semiestruturadas, foi realizada uma análise de conteúdo qualitativa combinando codificação baseada em teoria e dados. Apesar do uso generalizado de pagamentos eletrônicos, os resultados sugerem um aumento tanto na subdeclaração de renda quanto no número de negócios não registrados, corroborando o comportamento anticíclico do setor informal durante a referida crise. O artigo contribui para uma melhor compreensão da informalidade por meio de uma abordagem microeconômica-qualitativa e integrando a perspectiva de dois atores distintos. Os resultados são relevantes para a formulação de políticas voltadas à redução da informalidade empresarial.Alternate abstract:This article analyzes the impact of the COVID-19 crisis on the informality of Argentinian micro-, small-, and medium-sized enterprises based on the perception of commercial entrepreneurs and public accountants from Bahía Blanca (Argentina). Using primary data collected through semi-structured interviews, a qualitative content analysis was performed combining theory-oriented and data-based coding. Despite the widespread use of electronic payments, the findings suggest an increase in income underreporting and the number of unregistered companies, thus supporting the countercyclical behavior of the informal sector during that crisis. The article contributes to a better understanding of informality through a microeconomic-qualitative approach by integrating the perspective of two different actors. Empirical findings are relevant for policymakers seeking to reduce the levels of informality during periods of crisis.

What influence the performance of banks? Evidence from public sector banks in India

PurposeEvery shock, starting from the banking sector reform in 1992 to the global crisis due to Covid-19 pandemic, affects the performance of banks. The shocks and transformations jeopardise the bank's performance. This study cover period of 30 years starting from 1992. So, the reason behind taking only public sector banks is that after 1991–92 many banking sector reforms took place, and many new private sector banks and foreign sector banks entered into competition due to the liberalization, privatization, globalization (LPG) policy. So, it has been difficult for public sector bank to manage their performance in a competitive market. So, the purpose of this study is to find out influencing factors of bank performance especially public sector bank, because, it has been vital to identify factors influencing their performance.Design/methodology/approachThe current study explores the determinant of the performance of public sector banks in India. Currently, in India, 12 banks are public sector banks, which capture 59.8% market share in the banking industry. After 1994 new licences were issued by Reserve Bank of India for many banks, and foreign sector banks entered the market as an effect of LPG policy, and market competition is one of the significant determinants of the performance of banks. Thus, the panel regression model is used to analyse the impact of various determinants on the performance of public sector banks (from 1992 to 2021). Return on equity and return on assets are used as indicators of performance, whereas influencing factors are divided into two parts, bank-specific factors, which include bank size, asset quality (AQ), liquidity, credit deposit ratio (CDR), capital adequacy, debt-equity ratio, employee's productivity and macroeconomic factors which include inflation rate, tax rate and gross domestic product (GDP).FindingsResults of the study show that bank size is not an essential factor for measuring bank performance because it is insignificant with both indicators of performance. AQ, liquidity ratio and CDR are significant in both models with negative impact. Macroeconomic factors like GDP are insignificant with both indicators with positive relations and tax rates are significant with a positive relationship. The inflation rate is significant but affects negatively to performance.Research limitations/implicationsThis study only focuses on public sector banks. So, the results for private and foreign sector banks might differ. Considering the larger market share compared to other sector banks, the authors are focusing on public sector banks only. Foreign banks and cooperative banks are not included current analysis because of huge numbers and different working environments.Originality/valueDetermining influencing factors of bank performance is crucial because it will help the bank take various policy implications and formulation. Since independence measuring bank performance are important area.

Financing Local Government and Development in Canada in the Aftermath of a Global Pandemic: Continuity and Change

En cette période postpandémique, les administrations locales se retrouvent dans un contexte budgétaire difficile. S'appuyant sur les idées formulées au fil des ans par Richard Bird, l'auteur réexamine certains thèmes omniprésents dans les discussions et les analyses des finances municipales, tels que les avantages de l'imposition basée sur les bénéfices réalisés localement, les contraintes hiérarchiques qui pèsent sur la prise des décisions budgétaires, et la réalité d'une crise budgétaire perpétuelle au niveau local. Le fait de devoir financer un large éventail de dépenses pour les services publics au moyen d'une étroite base de recettes a entraÎné des tensions intergouvernementales et un débat persistant sur la capacité de l'assiette de l'impôt foncier à répondre aux demandes qui pèsent sur elle. Le financement des administrations locales peut se décrire au moyen des termes emprunt, dépense et imposition. La pandémie de COVID-19 a eu des répercussions sur chacun de ces aspects du processus décisionnel budgétaire des municipalités. La réglementation en matière d'emprunt est restée limitée par la hiérarchie;la pression pour augmenter les dépenses s'est accrue;et les recettes fiscales et tarifaires ont été défavorablement touchées. De plus, il semble probable que l'assiette fiscale des municipalités sera réduite compte tenu de la controverse entourant les droits d'aménagement. L'auteur utilise des données de l'Ontario pour illustrer les effets de la pandémie sur la santé budgétaire des municipalités. En outre, l'article utilise le tableau de bord de la santé budgétaire urbaine (Urban Fiscal Health Dashboard) de Richard Bird pour illustrer les aspects de la santé budgétaire à long terme des administrations locales de l'Ontario. Tout au long de cet article, l'auteur soulève des questions qui méritent d'être approfondies à la lumière de la contribution de Richard Bird à notre compréhension des mécanismes et des implications de la prise des décisions budgétaires locales.Alternate abstract:In the post-pandemic environment, local governments must confront a challenging fiscal environment. Drawing on insights provided over the years by Richard Bird, the author re-examines certain pervasive themes found in discussions and analysis of municipal finance, such as the merits of benefits-based taxation at the local level, the hierarchical constraints on municipal fiscal decision making, and the reality of a perpetual fiscal crisis at the local level. The underlying issue of having to finance a broad set of expenditures on public services from a narrow revenue base has resulted in intergovernmental tensions and continuing debate over the capacity of the property tax base to meet the demands placed on it. Financing local government can be described in terms of borrowing, spending, and taxing. Each of these areas of municipal fiscal decision making was affected by the COVID-19 pandemic. Borrowing rules remained hierarchically constrained, pressure to increase expenditures grew, and tax and fee-based revenues were adversely affected. Further, it seems likely that the municipal fiscal base will be narrowed given the controversy around development charges. The author uses data from Ontario to illustrate the impact of the pandemic on municipal fiscal health. In addition, the paper includes the Richard Bird Urban Fiscal Health Dashboard to illustrate aspects of the long-run fiscal health of Ontario's local governments. Throughout the paper, the author raises questions that merit further research informed by the perspective that Richard Bird brought to our understanding of the mechanics and implications of local fiscal decision making.

Debatable Aspects of the Concept of Tax Expenditures

[...]there is no uniform approach to defining the conceptual model of benchmark structure. [...]in addition to complaints about their overall quality and regularity, it is not possible to determine exactly how close to representative the data are (Redonda & Haldenwang, 2021) both due to different approaches to tax expenditure classification and the fact that governments often provide information only about a part of them, for example, in the US official the report includes an estimate of lost income from the provision of tax benefits only from income taxes. Since its beginning, noted concept has been criticized in academia, including professors Bittker (1969), Mclntyr (1980), and others. According to the Global Tax Expenditures Database (GTED), of the 46 G20 and OECD countries, only two (China and Saudi Arabia) do not publish any official information on tax expenditures, and from EU members just three countries (Croatia, Cyprus and Malta) do not report any tax expenditures. Methods In the process of research, general scientific methods of cognition were used: abstract-logical - to justify the relationship of tax benefits, benchmark structure of the tax and tax expenditures;critical analysis of discussion approaches to determining the components of "structural" benefits;systematic structural analysis to determine the elements of the benchmark structure of the tax;analysis and synthesis - in the process of transition from partial (simple) to integrated determination of tax expenditures;combination of qualitative and quantitative - to analyze both the content and value of individual components of the basic structure of taxes in Ukraine.

Carbon Tax: Moving Towards a Net-Zero Emissions Future

In the wake of the 21st century, climate change has emerged as the biggest lifethreatening challenge with a potential of evolving into the largest, if not the most complex, economic opportunity since the industrial revolution. While narrowing down its focus to carbon tax as a regulatory fiscal aspect of international economic law, this article explores the potential role of the tax in moulding this economic opportunity in line with the commitments assumed by countries under the 2015 Paris Agreement. The issue is whether imposition of carbon tax or restructuring tax rates can have a significant impact in regulating carbon emissions by rationally pushing consumers, investors, and producers, towards an environmentally sound direction. To answer this, the article investigates three carbon-tax implementation case studies;British Columbia, South Africa, and the revision of European Union Energy Taxation Directive in the context of aviation, with the aim to explore the scope of contributing factors – from adequate tax rate determination to optimum tax revenue use – in successfully curbing carbon-based emissions. Drawing upon the policy-efforts of the countries in the case studies, the challenges and the solutions, the article proposes a suggestive policy model of carbon-tax in the wake of COVID-19 pandemic, as the way forward in ensuring global carbon-neutrality.Alternate :In the wake of the 21st century, climate change has emerged as the biggest lifethreatening challenge with a potential of evolving into the largest, if not the most complex, economic opportunity since the industrial revolution. While narrowing down its focus to carbon tax as a regulatory fiscal aspect of international economic law, this article explores the potential role of the tax in moulding this economic opportunity in line with the commitments assumed by countries under the 2015 Paris Agreement. The issue is whether imposition of carbon tax or restructuring tax rates can have a significant impact in regulating carbon emissions by rationally pushing consumers, investors, and producers, towards an environmentally sound direction. To answer this, the article investigates three carbon-tax implementation case studies;British Columbia, South Africa, and the revision of European Union Energy Taxation Directive in the context of aviation, with the aim to explore the scope of contributing factors – from adequate tax rate determination to optimum tax revenue use – in successfully curbing carbon-based emissions. Drawing upon the policy-efforts of the countries in the case studies, the challenges and the solutions, the article proposes a suggestive policy model of carbon-tax in the wake of COVID-19 pandemic, as the way forward in ensuring global carbon-neutrality.

THE EFFECT OF STATE INTERVENTIONS ON THE TOURISM SECTOR OF THE REPUBLIC OF CROATIA

As part of the tertiary sector, the tourism market represents a constantly growing global industry. Revenues from tourism represent a substantial tax inflow for the Republic of Croatia, considering that the share of the entirecountry's GDP generatedfrom tourism activities ranges between 17 and 20% annually. The new pandemic caused by the coronavirus represents the biggest contemporary shock for world economies and economic trends. The tourism sector is the most affected by this pandemic because it is based on the movement of people, consumers' sentiments and the need for security and human contact in most activities. Compared with previous (either financial or public health) crises, the pandemic-caused crisis had the most significant impact on the economy due to globalisation and the openness of the global economy. Business entities that are part of the tertiary sector, especially those within the tourism industry, experienced a sudden drop in business volume due to the global pandemic caused by the spread of the coronavirus. The decline in business activities leads to a decrease in income and, thus, to lower state yields, which causes state intervention and borrowing. The paper analyses and compares the Croatian tourism sector with the competing Mediterranean countries of the EU and shows the influence of state interventions on tourism activities, which conditions state intervention and borrowing. The paper analyses and compares the Croatian tourism sector with the competing Mediterranean countries of the EU and shows the influence of state interventions on tourism activities.

DO DETERMINANTS INFLUENCE THE CAPITAL STRUCTURE DECISION IN BANGLADESH? A PANEL DATA ANALYSIS

More than two decades, capital structure decision marked as variation from optimal decisions as determinants are not properly considered due to the collapse of corporate governance. This study examines the impact of determinants on capital structure decisions in Bangladesh using Fixed-Effect Model (FEM) and Panel Corrected Standard Error (PCSE). The study revealed that debt structure is considerably influenced by liquidity, firm size, asset structure, non-debt tax shield, and operational age of companies. The study also indicates that the companies, which are not financially, sound, but used more debt because the owners of such companies are politically empowered in stock market. The firms that hold less fixed assets (as a percentage of total assets, particularly the family-run and politically affiliated firms used more debt regardless of their tax bracket, profitability and growth-showed a greater capacity for increased debt. This study primarily focused on financial framework to make capital structure decision based on related determinants.

Accounting Offices in View of Requirements Introduced by the Polish Deal

Purpose: The objectives of the Polish Deal include a plan for better and more financially supported healthcare system, lower taxes and higher remunerations. The assumption of the government's development plan is to recover from the crisis generated by COVID-19 pandemics and create better life conditions for all citizens. Accounting offices have been especially interested and obliged to thorough analysis of dynamic taxes modifications. This publication aims at presenting challenges encountered by these entities due to numerous amendment of tax regulations. The specific objective is the analysis of chosen tax modifications presented to citizens and in many cases dealt with by accounting offices. Design/Methodology/Approach: Critical analysis of literature and legal acts, case studies, logical reasoning. Findings: In the opinion of many owners of accounting offices, but not only, the regulations should enter into force with a sufficiently long vacatio legis, giving the opportunity to acquire knowledge, test and implement software, and communicate with taxpayers or employees. Too high dynamics of tax changes introduced in a short period of time contributes significantly to the decrease in the quality of services provided and an increase in risk for accounting and bookkeeping offices. Practical implications: The presentation of changes in the Polish Governance in the area of personal income tax is a valuable overview and source of information for a wide range of practitioners. Originality/value: In addition to the presentation of the introduced changes, the article presents specific examples of calculations based on the latest provisions of the Polish Order of July 2022.

Examining SNAP and TANF caseload trends, responsiveness, and policies during the COVID‐19 pandemic

Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP) cases increased by 3.3 million between March and June 2020, their largest quarterly increase ever. During the pandemic, many states adopted a wide set of policies and procedures to facilitate program enrollment, retention, and eligibility. I track these policies and create a pandemic policy index measuring state generosity. States that adopted more generous policies experienced larger TANF and SNAP caseload growth, especially eligibility policies such as exempting TANF work requirements or SNAP P-EBT availability. Analyzing the caseload relationship to labor markets, caseloads were less responsive to unemployment rate changes during the pandemic relative to the pre-pandemic period.

Tax Exemptions of Cooperatives in the Philippines and in Other Countries: A Comparative Study

In the Philippines, Undersecretary Orlando R. Ravanera, Chairman of the Cooperative Development Authority, declared that since the founding of the Rochdale Cooperative in England in 1884, different countries have adopted this cooperative form of organization that has resulted in significant economic gains and social development. Findings in this research could offer policy makers, especially those in the Philippine Congress, insights on the importance of cooperatives as partners in community and nation-building by different governments across the globe. [...]to appreciate the role of cooperatives to the Philippine economy, especially during this COVID 19 pandemic, the two provisions in the Philippine Cooperative Code of 2008 that provide for the tax exemption and tax treatment of cooperatives are hopefully not repealed. 2. [...]some countries allow agricultural cooperatives to enjoy tax exemptions and tax holidays so that these organizations can continue their role in addressing poverty, securing food production and boost economic growth (Kireyeva, 2016) as a whole. The cooperatives' not-for-profit nature is a justification for tax advantages in some countries, however in Western agri-food systems agricultural cooperatives face the challenge of inevitably competing with investor-owned businesses where they are at a bind between raising capital and conserving their basic governance (Tortia, Valentinov and Iliopoulos, 2013).

Digital Financial Inclusion, Digital Financial Services Tax and Financial Inclusion in the Fourth Industrial Revolution Era in Africa

The digital economy has risen dramatically in the global environment, and many developing countries, including African countries, have seen a spike in digital activity over recent years. The digital economy’s growth has resulted in an increase in digital financial services (DFS) in Africa and other developing regions. Since many African countries are under pressure to raise domestic revenue, taxing the digital economy has become a viable option. As a result, this study attempted to respond to the following questions: first, what is the link between DFS growth and digital inclusion in African countries? Second, what justifies the imposition of DFS taxes in Africa? Third, what are the potential consequences of DFS taxes in African countries? Using secondary data from the literature review and document analysis, a systematic technique for assessing or evaluating printed and electronic documents, and computer-based and internet-transmitted material, the study discovered that digital financial inclusion is driving financial inclusion on the African continent. The study also found that, despite several negative consequences associated with the growth of the digital economy, most African economic activities are informal and are being aided by various digital financial services. Therefore, it is equally crucial that when adopting digital finance taxes, care is taken to avoid excluding low-income earners from the financial sector and to take note of the usage, affordability, and distortive implications of taxation.

Aviation policy instrument choice in Europe: high flying and crash landing? Understanding policy evolutions in the Netherlands and Germany

In the public debate on climate change in Europe, aviation transport has become a bone of contention and thus also a target of political regulation. While the actual available policy instruments, their designs and effects have been extensively studied, their political economy has remained a rather blind spot of research. Therefore, in this article we explore factors accounting for the instrument choice in aviation policy. Revealing most different evolutions in this matter, the Netherlands and Germany represent appropriately illustrative cases for a comparative exploration. Based on the Political Process-inherent Dynamics Approach, we shed light on a highly complex and limiting institutional environment for aviation policy-making and ultimately identify diverging conceptions of problem structures as well as different configurations of party competition as main explanatory factors for instrument choice and aviation policy evolution.

THE IMPACT OF COVID-19 ON VAT TAX RATES IN EUROPEAN UNION COUNTRIES. EVIDENCE FROM BULGARIA

Bu makale, koronavirüs krizinden etkilenen Avrupa Birliǧi ülkelerinin vergi oranlarındaki deǧişikliklere dikkat çekmeyi amaçlamaktadır. Analizin gerçekleştirildiǧi dönem Mart 2020 - Aralık 2020'dir. 28 Üye Devletin her biri ayrı ayrı Íncelenmekte ve bireysel sektörlerde KDV vergi oranındaki deǧişiklikler tespit edilmektedir. Toplanan verilere ve belirli bir döneme ilişkin analizlere göre, ülkelerin bir yandan krizden en çok etkilenen ekonomik sektörleri desteklemeye, diǧer yandan ekonomik istikrarlarını nispeten iyi sınırlar içinde tutmaya çalıştıkları görülmektedir. KDV, tahsilatı Avrupa Birliǧi'nin her Üye Devletinin bütçesinde önemli bir gelir kalemi olan çok aşamalı bir vergidir. Düzenleyici yapısındaki veya vergi oranındaki herhangi bir deǧişiklik, sırasıyla tahsilat ve bütçe üzerindeki mali etkisi olmak üzere vergilendirme yöntemlerine yansır. Bununla birlikte, koronavirüs krizi ve dükkan, restoran, otel ve diǧer gelir kaynaklarının kilitlenmesi, Avrupa Birliǧi'nin tüm ülkelerinde vergi mükelleflerinin üzerindeki vergi yükünün hafifletilmesini gerektirdi. Muafiyet, belirli ürünler ve ekonomik faaliyetler için vergi oranında bir indirimdir.Alternate :This article aims to point out the changes in the tax rates of the European Union countries affected by the coronavirus crisis. The period during which the analysis is carried out is March 2020 - December 2020. Each of the 28 Member States is examined separately and changes in the VAT tax rate are identified in individual industries. Based on the collected data and their analysis for the specific period, it is noticed that the countries try to support the most affected economic sectors from the crisis on the one hand, and on the other hand to keep their economic stability within relatively good limits. VAT is a multi-stage tax, the collection of which is a major revenue item in the budget of each Member State of the European Union. Any change in its regulatory nature or tax rate reflects on the methods of taxation, respectively its collection and financial effect on the budget. However, the crisis with the coronavirus and the lockdown of shops, restaurants, hotels and other sources of income has necessitated easing the tax burden on taxpayers in all countries of the European Union. The relief is a reduction in the tax rate for certain products and economic activities.

Motives and Barriers to the Location of MNEs and the Role of the Informal Economy: The Case of Greece

Considering the significant decrease of investment and GDP in Greece, and the goal of achieving a V-shaped post-COVID-19 recovery, inward FDI could be regarded as a source of productive private investment. This study aims to indicate differences in the factors determining inward FDI in Greece before and after the great crisis and the role of the informal economy on Greece s inward FDI. This study explores the perceptions of multinational enterprises upper management regarding motives of and barriers to locating their activities in Greece, the role of the informal economy and how these perceptions changed before and after the great economic crisis of late 2000s. The results indicate that the relation between inward FDI and the informal economy depends on types of entry and that tax evasion opportunities can impact positively on the motives of foreign investors.

The Influence of Taxation on Income Inequality: Analysis of the Practice in the EU Countries

The growing economic inequality around the world is recognized as a global problem of mankind. At the same time, the key tool for reducing inequality and ensuring the achievement of sustainable development goals is the taxation system given its distributive function. That is why this paper puts forward and proves a scientific hypothesis according to which direct taxation has a significant impact on economic inequality, with its scale and sphere depending on the level of economic development and the specific architecture of the tax system adopted in a particular country. The study relies on data from 28 European Union countries, including the United Kingdom, whose tax systems are not identical but harmonized in accordance with European Union directives, the same as the legislation in other economic sectors. Accordingly, it can be concluded that similar institutional characteristics are present. We have used the method of two-stage cluster analysis, which is meant for identifying the natural splitting of the mass of data into groups, then carried out regression analysis and built some models. The contribution of the study is revealing a number of important regularities that are significant for characterizing the dependence of income inequality on direct taxation as well as formulation recommendations for improving the tax policies of European Union countries, with the potential of policy implications. The results obtained can play a significant role in the development and further harmonization of tax systems and resolving the global problem of increased inequality within and between countries.

SOCIALISM VERSUS CAPITALISM: ACHIEVING A NEW BALANCE BETWEEN COMPETING STAKEHOLDERS

[...]the circumstances facing the worlds' nations and regions are so dire that many researchers predict the end of the neoliberal global world order that has created much wealth for many (though not all) through global free trade, and efficient global supply chains fueled by "capitalism" and "free markets" (e.g., Saad-Filho, 2020). [...]Americans are warned that if they became socialists, they would end up living in a country, which would become similar to Venezuela even though Venezuela's problems do not stem from the country's ambitions to provide social services to its citizens, but rather from the deficiencies in its governance system (e.g., Qiu, 2018). First dimension (x-axis) is a construct that we identify as the level of definition of property rights that is observed in the system, ranging from fully defined private ownership of property to no private ownership of property (i.e., communism). [...]in some regions of the "primordial soup" of economic-political options

Analysis on the Steady Growth Effect of China’s Fiscal Policy from a Dynamic Perspective

Under the goal of a “new development pattern”, it is of great practical significance to accurately identify the economic growth effect of fiscal and tax policies. This paper constructs a TVP-FAVAR model to measure the economic effects of China’s fiscal and tax policies at the aggregate and structural levels. The results show that the reduction in total tax has a positive effect on real variables such as output and consumption;especially at the present stage, the promotion effect of total tax reduction on economic growth is relatively strong, but the stimulation effect on price is relatively weak. Further, the tax structure in which the ratio of direct tax to total tax increases and the ratio of indirect tax to total tax decreases is more conducive to the increase in output and consumption, and will not strongly stimulate the rise of price level. Therefore, at this stage, China should continue to vigorously implement the tax reduction policy and ensure the continuity of the tax reduction policy. At the same time, we should continue to optimize the tax structure and give better play to the regulatory role of fiscal and tax policies in income redistribution, so as to achieve the goal that fiscal and tax policies help build a “new development pattern” and promote high-quality economic development.

The journey to greater equality

[...]examining incomes, along with other variables, is also essential. The crucial role of public activity then transcends capitalism, because when such services are provided by public authorities without basing them on commercial principles in anticipation of profits, this effectively creates a mixed economy. In addition to redistribution, he argues that taxes on inheritance can serve the goal of “predistribution” that inhibit too much intergenerational wealth transfer, once again suggesting that highly confiscatory rates of taxation on individuals have had immense historical success. [...]this is precisely why, in addition to the fiscal policies that he puts so much emphasis on, it is necessary to bring in other regulatory measures and changes in legal codes that would impact predistribution nationally and internationally. [...]low-income and middle-income countries (LMICs) today, which cannot achieve what rich countries can through this progressive fiscal strategy alone, necessarily require other elements of a broader strategy.