Voluntary disclosure programmes offer tax evaders the opportunity to come clean with reduced penalties. This column uses data from the US and Germany to examine the merits of such programmes. They are found to increase tax evasion, but also to significantly lower administrative costs, leading to a net increase in tax revenues.
Dominika Langenmayr, Friday, November 13, 2015 - 00:00
Arash Nekoei, Andrea Weber, Friday, July 10, 2015 - 00:00
The generosity of unemployment insurance is often cited as a reason for long spells of joblessness. But this view neglects other important, and potentially positive, economic aspects of such programmes. Using Austrian data, this column presents evidence that unemployment insurance has a positive effect on the quality of jobs that recipients find. This can in turn have a positive effect on future tax revenues, and has implications for the debate on optimal insurance generosity.
Alberto Alesina, Matteo Paradisi, Friday, May 29, 2015 - 00:00
Most of us intuitively believe that politicians reduce taxes and increase spending in the run up to elections to curry favour with voters. But our logic may well be flawed. This column presents evidence from recent Italian elections suggesting that things aren’t so black and white. Yes, some municipalities set lower tax rates in the run up to elections. But the evidence also suggests that municipalities running deficits will think twice about tax breaks and spending sprees. Politicians in big cities are also more cautious, choosing to focus not on tax but on more pressing local issues.
Ricardo Perez-Truglia, Ugo Troiano, Friday, March 20, 2015 - 00:00
Hans Holter, Dirk Krueger, Serhiy Stepanchuk, Friday, February 20, 2015 - 00:00
Tim Besley, Anders Jensen, Torsten Persson, Thursday, February 12, 2015 - 00:00
Maarten van ’t Riet, Arjan Lejour, Monday, January 5, 2015 - 00:00
Ronald B. Davies, Julien Martin, Mathieu Parenti, Farid Toubal, Monday, January 5, 2015 - 00:00
Fabian Kindermann, Dirk Krueger, Saturday, November 15, 2014 - 00:00
Ruud de Mooij, Michael Keen, Victoria Perry, Sunday, September 14, 2014 - 00:00
Agnès Benassy-Quéré, Alain Trannoy, Guntram Wolff, Tuesday, July 22, 2014 - 00:00
Tax harmonisation has been controversial since the establishment of the European Economic Community, and corporation tax proposals are currently on the table in the EU. Although tax competition can be beneficial, tax harmonisation could curb tax competition that leads to the under-provision of public goods or to burden-shifting from mobile to immobile tax bases. As yet, no agreement has been reached on any ambitious harmonisation plan for mobile tax bases. This column explores the possibility of implementing partial tax harmonisation for corporate taxation and the taxation of the banking sector.
Carlos A. Vegh , Guillermo Vuletin, Tuesday, October 1, 2013 - 00:00
Government spending is procyclical in developing countries, exacerbating the business cycle. However, an analysis of tax policy is also required in order to properly assess the overall stance of fiscal policy. This column presents recent research showing that tax policy tends to be procyclical in developing countries and acyclical in developed countries. Although some developing countries have managed to escape the procyclical fiscal policy trap, some developed nations – notably Eurozone members – are falling into it.
Ferdinand Rauch, Tuesday, November 13, 2012 - 00:00
Advertising is expensive and thus raises the cost of goods, but it may encourage competition that keeps prices down. This column addresses the old question with data from a natural experiment brought about by tax harmonisation in Austria. It argues that on average advertising decreases consumer prices and estimates that if the 5% tax were abolished, consumer prices would decrease by about 0.25 percentage points.
Emmanuel Guindon, Arindam Nandi, Frank J Chaloupka, Prabhat Jha, Friday, December 23, 2011 - 00:00
In India, 1 in 5 of all adult male deaths and 1 in 20 of all adult female deaths at ages 30-69 are due to smoking. This column estimates that raising the price of cigarettes by 1% would decrease smoking by about 1.1% and even more so for poorer households.
Emmanuel Saez, Henrik Kleven, Camille Landais, Thursday, January 6, 2011 - 00:00
This month some of Europe’s most skilled footballers will switch clubs in deals worth millions of euros. This column analyses the movement of Europe’s footballers between the top 14 leagues and finds that a major influence on player decisions to move is the difference in the tax regime – with policy implications going well beyond the football pitch.
Morten O. Ravn , Karel Mertens, Wednesday, August 26, 2009 - 00:00
The composition and timing of the fiscal stimulus is a major concern for policymakers. This column presents research showing that anticipated tax cuts result in reduced economy activity before they take effect. During the current downturn, that constitutes a strong argument against stimulus policies that phase in tax cuts over time.
Nicholas Tosney, Monday, May 5, 2008 - 00:00
There is increasing public concern about gambling, and the UK government recently established a Gambling Commission. This column examines England’s historical experience with regulating and taxing gambling to draw lessons for the present.
Marius Brülhart, Mario Jametti, Friday, November 2, 2007 - 00:00
Opponents of international tax harmonisation argue that tax competition can rein in the tax-raising powers of big-government ‘Leviathans’ and thereby act as a force for good. An analysis of taxation across Swiss municipalities lends support to that argument.
Graziella Bertocchi, Sunday, July 15, 2007 - 00:00
Inheritance tax revenues have long been declining in all OECD countries, both in terms of total revenues and GDP. This trend is explained by the secular decline of wealth inequality, and is also influenced by differential rates of tax avoidance and by the evolving composition of wealth.
Charles Wyplosz, Wednesday, June 20, 2007 - 00:00
Sarkozy’s de-taxing of overtime work adds a distortion on top of an already bad law and fails to address the real problem – the 35-hour week legislation. However, the idea is much less bad than it looks at first glance.