Suchergebnisse

AbstractThis article provides an introductory review of the alternative possible income distributions that can be used when making cross‐sectional evaluations of inequality changes and the effects of taxes and transfers using a household economic survey. It attempts to clarify the various alternatives for users of data and those interpreting results. It focuses on the choice of income unit and the need to avoid spurious comparisons. The use of adult equivalence scales and the application of an explicit sharing rule are considered, as are comparisons over time where the tax structure and populations differ. Numerical examples highlight the alternative approaches and distributions.

AbstractThis article examines the determination of the optimal threshold value for goods and services tax (GST) for imported units arising from Internet orders. The concept of an optimal threshold is wider than simply the maximisation of revenue net of administrative costs. At the optimal threshold, the marginal cost of funds from GST is equated to the ratio of the marginal value of public funds to their marginal social value, reflecting the value judgements of a decision‐maker. The marginal cost of funds allows both for compliance costs and the marginal excess burden arising from a small increase in the threshold. Illustrative numerical values are reported, showing the sensitivity to administrative costs, the demand elasticity and, importantly, value judgements.

Abstract Direct tax structures are regularly revised and debates over changes are heated. Taxes affect the behaviour of individuals and families in ways which are hard to predict, but which impose constraints on governments trying to achieve their objectives. Attempts to help one group of individuals often have unintended consequences on other groups. Views about the role of a tax system vary substantially but, in debates, the basic value judgements which influence policy recommendations are seldom made explicit. This article attempts to clarify the main tensions involved in tax planning and to explain why consensus is unlikely ever to be achieved.