哈维罗森_财政学(第八版)英文课件Chapter_21

Source: US Bureau of the Census [2006]. Figures are for 2003-2004.
21-5
Rationalizations
Ease of administration Defining the tax base Tax evasion
21-6
Efficiency and Distributional Implications of States Sales Taxes
21-7
A National Retail Sales Tax
Arguments in favor
Simplicity Ease of compliance
Arguments Against
21-8
Value-Added Tax
How a value-added tax works VAT as an alternative method for collecting retail sales tax
Income tax $1,000 $500 $500 $0 $0 $0 $500 Consumption tax $1,000 $500 $500 $0 $0 $0 $500
Ms. Ant
Income tax $1,000 $0 $500 $50 $525 $25 $523 Consumption tax $1,000 $0 $0 $100 $550 $550 $500
21-9
Implementation Issues
Treatment of investment assets
Consumption-type VAT
Collection procedure
Invoice method
Rate structure
21-10
A VAT for the United States?
Efficiency and Equity of Personal Consumption Taxes
Efficiency issues
An income tax and saving and labor supply decisions A consumption tax and saving and labor supply decisions
21-12
Cash-Flow Tax
How a cash-flow tax works How to compute annual consumption
Cash-flow basis Qualified accounts
21-13
Income versus Consumption Taxation
tax base = payments received by individual for their labor services No additional deductions Apply selected tax schedule
Why is H&R tax a consumption tax?
21-18
Special Problems
Policy Perspective: Death of the Death Tax? Jointly held property Closely-held businesses Avoidance strategies
Insurance trust Gifts of stock
Relation to personal income tax Income distribution
21-17
Provisions of the Unified Transfer Tax
Gross Estate - Charitable Contributions - Funeral Expenses - Costs of Settling Estate (lawyer’s fees) - Outstanding Debts - Lifetime Exemption - Qualified Transfers to Spouse - Annual Gift Exclusion Taxable Estate * tax rate Tax
21-15
Wealth Taxes
Justifications for taxing wealth
Large accumulations of wealth should be taxed Correct problems with administration of income tax Higher wealth implies higher ability to pay Reduces the concentration of wealth Payment for benefits received from government
Advantages No need to measure capital gains and depreciation Fewer problems with inflation No need for separate corporation tax Disadvantages Administrative problems Transitional issues Gifts and bequests
21-16
Baidu Nhomakorabea
Estate and Gift Taxes
Rationales
Payment for services Reversion of property to society Incentives
Recipient versus donor behavior Work Saving Form of bequest
21-22
Annual versus Lifetime Equity – A Numerical Example
Parameters Income tax rate = 50% Consumption tax rate = 50% Interest rate = 10%
Mr. Grasshopper
Parameters Income tax rate = t Consumption tax rate = tc Interest rate = r
Income Tax
Mr. Grasshopper I0 c0G tI0 r(I0 – c0G) tr(I0 – c0G) Ms. Ant I0 c0A tI0 r(I0 – c0A) tr(I0 – c0A)
Differential versus uniform tax rates How to set rates
Efficiency goal only Equity goal
Externalities Sales taxes as substitutes for user fees “Sin” taxes Information requirements for differential tax rates
21-3
Retail Sales Tax
General sales tax Selective sales tax (excise tax or differential commodity tax) Forms of a sales tax
Unit tax Ad valorem tax
21-4
State and Local Sales Tax Revenues by Source ($billions)
Source General sales tax Motor fuel Alcoholic beverages Tobacco Public utilities Percent of own-source revenue from sales taxes State $197.9 33.8 4.6 12.3 10.7 36.7% Local $46.9 1.2 0.4 0.3 10.7 10.1%
21-19
Reforming Estate and Gift Taxes
Integrate with personal income tax Accessions tax
21-20
Prospects for Fundamental Tax Reform
Broad versus piecemeal changes
21-2
Efficiency and Equity of Personal Consumption Taxes
Equity issues
Progressiveness Ability to pay Annual versus Lifetime Equity
A numerical example A formal model
21-21
Gross Estate
All decedent’s assets at time of death, including real property, stocks, bonds and insurance policies, plus gifts made during decedent’s lifetime Typically valued at market value at date of death; valuation may be set 6 months later if value of estate declines Closely held businesses and farms are valued at “use value;” this can reduce estate value by up to $770,000
Desirability of VAT depends on…
What tax (or taxes) it will replace How revenues will be spent
Political implications of VAT’s revenue raising prowess International implications
CHAPTER 21
FUNDAMENTAL TAX REFORM: TAXES ON CONSUMPTION AND WEALTH
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
21-23
Income period 0 Consumption period 0 Taxes period 0 Income period 1 Consumption period 1 Taxes period 1 Present Value of taxes paid
Annual versus Lifetime Equity – A Formal Model
21-14
Problems with Both Systems
Defining consumption Choosing the unit of taxation Choosing the rate structure Valuing fringe benefits Determining method for averaging over time Taxing home production Discouraging incentive to participate in underground economy Real world versus ideal tax systems Policy Perspective: President’s Advisory Panel on Federal Tax Reform
21-11
Hall-Rabushka Flat Tax
Business tax
tax base = Sales – purchases from other firms – payments to workers Pay flat tax rate on final amount
Individual Compensation tax