spend and tax

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Tax me, but spend wisely? Sources of public finance and government accountability

Tax me, but spend wisely? Sources of public finance and government accountability

This paper first asks whether increases in governments’ capacity to tax have a positive impact on the provision of public infrastructure in the context of Brazil- ian municipalities. To do this I study a program that helps municipalities increase their tax revenues by subsidizing investments in local tax administrations. I con- sider whether the program increased local tax revenues and whether the extra revenue generated were spent on improving local public services. Participation to the tax-capacity program is voluntary but the particular timing of its implemen- tation enables me to estimate its causal impact on outcomes: local governments decide when to apply to the program but the date at which they start it is deter- mined by constraints faced by the supplier of the program. This makes it possible to separately identify the impact of the program from a potential selection effect. I then consider whether local governments spend these tax revenues differently from non-tax (transfer) revenues. Variations in non-tax revenues come from a rule determining how much federal transfers municipalities receive, as also used by Litschig and Morrison (2013) and Brollo et al. (2013). 2 The rule specifies that transfer revenues increase discontinuously with local population size at 14 popu- lation thresholds, so identification of the impact of transfer revenues comes from municipalities that cross these thresholds over time. I compare how governments spend increases in tax and transfer revenues using a 14 years panel dataset on municipal revenues and expenditure outcomes, primarily the quality and quantity of locally funded public education infrastructure.
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Tax me, but spend wisely? Sources of public finance and government accountability

Tax me, but spend wisely? Sources of public finance and government accountability

Several mechanisms could lead to a difference between how tax and non-tax revenues are spent. First, increases in tax revenues affect the information citizens have on public budgets differently from increases in transfer revenues. Political agency models of public finance argue that politicians capture more rents and provide less public goods when there are asymmetries of information over elements of the public budget (see Besley and Smart (2007)). Increases in tax revenues are by definition observed by the tax-paying part of the population, increases in transfers from higher level of governments may not be observed as well. As shown in the theoretical (web) appendix this assumption would lead to increases in taxes having a larger effect on the provision of public services and a smaller effect on corruption than an increase in non-tax revenues of the same size. 20 Second, increases in tax revenues could change citizens’ behavior. Citizens may demand more from politicians when they pay more taxes - political scientists have coined this the ‘no representation without taxation’ hypothesis (Ross, 2004, Moore, 2007). Assuming that citizens’ utility is submodular in the public and private goods or that individuals suffer from some version of the sunk cost fallacy would formalize this argument: citizens paying more taxes to their local government will also be more willing to exert effort to monitor the politician. Increases in transfers do not impose a (direct) cost on them and hence does not affect their interactions with the politician. 21
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Identifying interesting packages :
a spend analysis tool

Identifying interesting packages : a spend analysis tool

This study will focus on the interpretation step of a spend analysis. All the existing tools and frameworks are aimed at creating an overview of the different purchasing packages, their characteristics (such as value and number of suppliers) and how to obtain support within a company in order to perform a spend analysis (Kirit Pandit & Marmanis, 2008). The gathering and the refining steps are included, but not the interpretation step. In this paper a tool shall be developed in order to identify interesting packages that result from a spend analysis. This shall be done in cooperation with the Dutch Tax and Customs Administration (Dutch: de Belastingsdienst). They will provide the data of the first two steps of the spend analysis process (gathering and refining) as a support for the construction of the tool. Therefore the tool, while having a more universal aim, will be tailor made for the Dutch Tax and Customs Administration.
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The distributional impact of a carbon tax in Ireland

The distributional impact of a carbon tax in Ireland

Finally, there are at least five studies addressing the distributional effects of a carbon tax with specific reference to Ireland. On the basis of data from the Irish Household Budget Survey (HBS), Scott (1992) predicts that a carbon tax would be markedly regressive in Ireland, because low income households both spend disproportionately more on energy and generally use fuels with higher carbon contents. Scott and Eakins (2004) essentially repeat the work with more recent data and get similar results. O’Donoghue (1997) estimates both direct and indirect impacts, by using HBS and input-output analysis, and it turns out that the tax burden would be borne more equally by households once the indirect impact is taken into account too. Bergin et al. (2004) use an energy-augmented macro-econometric model (ESRI’s HERMES model) to forecast energy demand and emissions, with carbon taxation. In relation to the equity issue, the authors argue that reducing VAT through tax revenue- recycling is better than by giving households lump-sum payments because it would affect competitiveness less. Callan et al. (2009) use more recent data than do Scott and Eakins, and combine estimated carbon tax payments with ESRI’s micro-simulation tax-benefit model (the SWITCH model) to compare a few revenue-recycling options. They find that a carbon tax on its own would be regressive, as expected, and the preferable way to compensate households would be through modest increases in both welfare payments and tax credit. Note that the paper by Callan et al., is in the essence, very similar to the present one. However, the current paper also estimates the indirect impact of the tax, 5 something that Callan et al., did not.
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Spend Now Or Spend Later: The Role Of A Business Education And Critical Thinking Skills In Increasing Retirement Plan Saving Rates For New, Young Enrollees

Spend Now Or Spend Later: The Role Of A Business Education And Critical Thinking Skills In Increasing Retirement Plan Saving Rates For New, Young Enrollees

The critical thinking needed to decide how much to save through a 401(k) plan requires consideration of a broad array of factors, both present and future in focus. Enrollees must consider their current financial status, commitments, and goals as well as forecast future needs, both short-term and long-term. In addition, not only must enrollees understand the plan options presented, they must also have knowledge of basic financial concepts, including but not limited to the time value of money, compound interest, and tax laws. To add further to the complexity, for young, new college graduates the decision requires them to plan for a life they have yet to live, with income and choices previously unavailable to them. Research on 401(k) plan participation has shown that the complexity of the decisions involved often causes individuals to put off the decision, adversely affecting their total saving amounts (Beshears, Choi, Laibson, & Madrian, 2009). Thus, while critical thinking skills may be taught in higher education curriculums, do such skills in general aid in 401(k) decision-making or is additional specifically financial contextual training needed?
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The flaws in Keynsian borrow and spend

The flaws in Keynsian borrow and spend

However, against that, there is a real and more serious problem as follows. An ever expanding national debt, or a national debt that expands relatively fast, causes a significant number of influential people to campaign for cuts in government spending (or tax increases). The two latter DO HAVE serious economic consequences: the result is a decline in demand in real terms, and means unnecessary unemployment. And this is a very real problem in the U.S. at the time of writing.

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Estimating Illegitimacy of public procurement spend

Estimating Illegitimacy of public procurement spend

The candidate or tenderer concerned must only be excluded from the procedure where there are no other means to ensure compliance with the duty to observe the principle of equal treatment. Prior to any such exclusion, candidates or tenderers must be given the opportunity to prove that their involvement in preparing the procurement procedure is not capable of distorting competition. Contracting authorities must exclude an economic operator from participation in a procurement procedure where they have established, that that economic operator has been the subject of a conviction by final judgment for criminal activities. There is also grounds for exclusion when a supplier is linked with criminal activities, child labour, failure to pay taxes or social obligations, failure to act in the interest of the public or it can be shown that awarding the contract would not be in the best interest of tax payers money because of violations of the essence of the directive. Transparency, fair competition and value for tax payers’ money. Excluding candidates severely hinders competition in tenders. Contracting authorities should therefore be cautious in applying it.
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Goods and Services Tax (GST): Economic Impact in India and Challenges Ahead

Goods and Services Tax (GST): Economic Impact in India and Challenges Ahead

Jaiprakash ( 2014) in his study mentioned that GST at the Central and the State level are expected to give more relief to industry, trade, agriculture and consumers through a more comprehensive and wider coverage of input tax setoff and service tax setoff, clubbing of several taxes in GST and phasing out of CST. The responses of industry and also of trade have been indeed encouraging. Thus, GST offers us the best option to broaden our tax base and we should not miss this opportunities to introduce it when the circumstances are quite favorable and economy is enjoying steady growth with only mild inflation. Nishitha Guptha (2014) in her study (Does Goods and Services Tax Leads to Indian Economic Development?) stated that implementation of GST in the Indian framework will lead to commercial benefits which were untouched by the VAT system and would essentially lead to economic development. Hence GST may usher in the possibility of a collective gain for industry, trade, agriculture and common consumers as well as for the Central Government and the State Governments. Saravanan Venkadasalam (2014) has analysed the post effect of the goods and service tax (GST) on the national growth on ASEAN States using Least Squares Dummy Variable Model in his research paper. He stated that seven of the ten ASEAN nations are already implementing the GST. He also suggested that the household final consumption expenditure and general government consumption expenditure are positively significantly related to GDP as required and support the economic theories. But the effect of the post GST differs in countries. Philippines and Thailand show significant negative relationship with their nation’s development. Meanwhile, Singapore shows a significant positive relationship. Nevertheless, the extent of the impact varies depending on the governance, compliance cost and economic distortion.
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Tax penalties in SME tax compliance

Tax penalties in SME tax compliance

The other challenge is the use of an IT system in administration of tax penalties. IT systems are an integral part of a modern tax administration and in fact they are indispensable for the efficient monitoring of taxpayer compliance. If used for verification of fulfillment of taxpayer obligations (e.g., late or non filing, required notifications, tax payments, etc.) they easily pick up non-compliant taxpayers. They may be programmed to impose a fine (or other penalty) automatically in every single case of non-compliance identified and notify taxpayers without any intermediation of the officials of the revenue body. This vastly speeds up admin- istrative processes and reduces not only the amount of work otherwise to be com- pleted by the revenue body’s employees but also the risk of abusive actions on their part. However, such a process may appear to be “soulless” and contradict the idea of a fair penalty. Unless there is a “wise” algorithm in use, i.e., an algorithm capable of taking into account most relevant circumstances (e.g. a newly set up business, first late filing or payment), a verification of the penalty imposed is nec- essary – if not beforehand, then through a simplified appeal.
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Which Pensioners Don't Spend their Income and Why?

Which Pensioners Don't Spend their Income and Why?

Pensioner households where the HRP was aged 60 and above were less likely to spend a low share of their income than those aged under 60. To put this the other way around, households containing pensioners where the HRP was aged under 60 were more likely to spend a low proportion of their income than older ones. This age category interacts with household type, not least because two-thirds of ‘other’ households had a HRP aged under 60. When a variable for ‘other’ households was entered into the logistic regression models (so that this household type was being compared with single and couple pensioner households together), it was statistically significant. Compared with single and couple pensioner households, ‘other’ households were 1.2 times more likely to spend a low share of their income. Logistic regression models were also run that included a variable for whether or not households were in the bottom quartile for spending on food as a proportion of their income. For this variable, as with the variable for low total spending, the quartiles of spending on food were calculated separately for each income quintile. This method was used because spending on food as a proportion of income is inversely related to income, falling as income rises. This logistic regression analysis indicated that low relative food spenders were significantly more likely than other households to be low total spenders. 8
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HOW PATIENTS SPEND THEIR TIME AT THE PEDIATRICIAN'S OFFICE

HOW PATIENTS SPEND THEIR TIME AT THE PEDIATRICIAN'S OFFICE

Another notable finding, the 32 minutes of medical student-patient interaction at the teaching clinic demonstrates the time of the patient and, to some extent, of the staff time involved[r]

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How To Spend It? Capital Accumulation in a Changing World

How To Spend It? Capital Accumulation in a Changing World

goods, each one having a distinct social relative price and personal value individual preference, we study the impact of these relative values’ evolution on capital accumulation, dependi[r]

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Which pensioners don’t spend their income and why?

Which pensioners don’t spend their income and why?

Limited private and public transport may reduce the extent to which pensioners can access shopping centres, supermarkets, and leisure and other facilities where they may spend their money, especially pensioners in rural areas for whom amenities may not be within walking distance. Analysis of the EFS in Chapter 3 found that pensioner households spending a low proportion of their income were less likely than households that spent a high proportion of their income, to own a car or van (39 per cent compared to 74 per cent). Table 4.8 shows that owning a car was not significantly related to food spending for younger pensioners under the age of 75, but having access to the use of a car or van was significant for both younger and older pensioners. Also a much higher proportion of younger pensioners had access to a car (including as a passenger) than older pensioners (84 per cent compared to 61 per cent).
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Gst new tax regime: issues and challenges

Gst new tax regime: issues and challenges

GST is stated to be rolled out from 1 April 2017 and the expected benefits like increase in GDP growth, lucid indirect tax structure, anticipated prices fall, more generation of tax revenue and reduction in cumbersome compliance procedure etc are welcomed. Further if more than 140 countries worldwide have adopted GST like tax structure this is an obvious indication of its viability across different economies which should instill faith in our country authorities to be a success story. However to be it so, the government and tax administrative mechanism needs to chalk down effective strategic policies for providing necessary IT infrastructure coupled with extensive training of staff and other stakeholders who are also needed to be educated about the mechanism of this new tax regime. The task of doing so is even more challenging in country like India where lacunas of present indirect tax regime, corrupt administrative system with rigid mind set and obvious resistance to adapt to any change will make the implementation task a bumpy ride for authorities.
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Enhancement strategy of land and building tax in kendari

Enhancement strategy of land and building tax in kendari

Result of the study shown that the strategy implemented in improving land and infrastructure tax of Kendari City is by implementing agresive strategy, by a) determining an effective tax, b) registering the obligor of tax payers, c) the role of the collector in the regent must be effective, d) the role of coordinating team in regent level must be effective, e) optimizing the management of PBB data based on IT, f) applying the system of geographicl information in determining an on line tax. The grand strategy that increasing receipt of Land and Building Tax of Kendari City, that is to support aggressive strategy, the concept of strategy in this cell is the increase of Land and Building Tax receipts intensively and wider. The form of strategy is to increase the strength to seize the opportunities that exist in the form, by a) Make taxing effectively, b) Recruiting new taxpayers through data collection and registration, c). Effective role of collector in urban village level, d) Making effective the role of coordination team at sub-district level, d) Optimizing IT-based Land and Building Tax data management, e). Implement a geographic information system (GIS) to set taxes online.
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Impact of online tax filing on tax compliance among small and medium enterprises (mse) in kibwezi sub county in Kenya

Impact of online tax filing on tax compliance among small and medium enterprises (mse) in kibwezi sub county in Kenya

The economic definition of taxpayer compliance views taxpayers as ‘perfectly moral, risk-neutral or risk-averse individuals who seek to maximize their utility, and chose to evade tax whenever the expected gain exceeded the cost (Milliron and Toy, 1988). Thus, a pure ‘cost-benefit’ approach is given for why or why not taxpayers may comply with the tax laws. Some researchers propose that individuals are expected to weigh ‘the uncertain benefits of successful evasion against the risk of detection and punishment (Fischer et al, 1992). Consequently, a penalty structure forms part of the punishment, and is a critical factor in an individuals’ choice to evade tax. The models which have been based on the economic theory of compliance generally focus on deterrence. Deterrence can be achieved through a number of approaches, punitive and persuasive. That is, deterrence may take on the form of increasing the probability of detection, increasing the tax rate or by the imposition of tougher penalties (Fischer et al, 1992). Alternatively, it may take on the form of better education, increased advertising/publicity and incentives (Hite, 1989).The economic deterrence model has been commonly used to examine tax evasion and compliance from a theoretical perspective (Jackson & Milliron, 1986. According to Porschke and Witte (2011) they established that majority of taxpayers will always mention fairness as one of the most important issues that influence tax compliance. Where taxpayers perceive that there is fairness in taxation, they comply voluntarily, and the reverse is also true.
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Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects

Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects

In the following analysis, under the term allowances (A) we consider the sum of BA and DA. Obligatory contributions to the social security funds are not a part of in- come subject to taxation, and therefore they were not analyzed. Deductions (D) capture all other reliefs that reduce the tax base, shown in Table 1 under “other allowances and deductions” and “standardized costs”. Among tax credits (C), there was only one such relief, in 2004, but it was negligible in amount. The tax unit is the individual. For pur- poses of comparability across years, income from dividends has been excluded from the analysis. 11
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Push development terms on tax equations as 2nd tier government industry exploratory partner

Push development terms on tax equations as 2nd tier government industry exploratory partner

tandem basically. This gives a good taxation primary account covering responsibilities of the independent characteristic groups (intrinsic and exploratory) as balancing their sides of a mutually industry. The next two, characteristic taxation and penalties on freedom are recommended. The basis for taxation as the principal part of government in the industrial layout is integrated on the duties required for tax assessment and governance valuation.

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On whom and how shall we spend our dollars?

On whom and how shall we spend our dollars?

On whom and how shall we spend our dollars? Med J Malaysia Vol 3S No 2 December 1980 EDITORIAL ON WHOM AND HOW SHALL WE SPEND OUR DOLLARS? PAUL C Y CHEN GOVERNMENT EXPENDITURE ON HEALTH It is sobering[.]

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Why Can’t Canada Spend More on Mental Health?

Why Can’t Canada Spend More on Mental Health?

The National Mental Health Commission of Australia noted that Australia’s mental health spending ac- counted for 6.5% of national expenditures on health while mental illness accounts for 14% of disease burden. Further the National Mental Health Commission noted that the spending was oriented toward acute care rather than prevention and early intervention [13]. In budget 2011/12 the national government committed to invest a further $2.2 billion to improve mental health services over 5 years which also included $201 million for part- nership funding with the states and increased funding for supportive housing. The budget noted that this spend- ing would complement “the government’s commitment to spending more than $5 billion to address homeless- ness including build thousands of new homes for people who are homeless and increasing support services” [14].
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