Pub Date : 2021-09-01DOI: 10.15826/jtr.2021.7.2.094
M. Krajňák
Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.
{"title":"Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity","authors":"M. Krajňák","doi":"10.15826/jtr.2021.7.2.094","DOIUrl":"https://doi.org/10.15826/jtr.2021.7.2.094","url":null,"abstract":"Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44174297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.15826/jtr.2021.7.2.096
D. Lapov, I. Mayburov
This study aims to model the distribution of the tax burden in schedular progressive taxation and to describe the key characteristics of such models, in particular their differences from the models based on continuously increasing smooth functions of the relationship between the tax burden and the taxpayer's income. Our hypothesis is that the use of the Gompertz function to model the main indicators of tax burden distribution of the schedular progressive income tax will help us approximate and formalize the distribution of the tax burden in a relative income tax bracket-based progression. Our research relies on the hypothetico-deductive model, more specifically, on mathematical hypothesis testing. The methodological framework comprises models of progressive taxation and mathematical methods, including data approximation based on the use of the Gompertz function, analysis of the antiderivative and convexity of functions and their properties. The resulting model can be used to describe the dynamic characteristics of the relationship between the tax burden and certain parameters of schedular taxation. This model can help identify the level of income beyond which the progression of the tax burden becomes formal and does not generate commensurately high revenue growth. The existence of such income level results in what can be considered the key drawback of the relative progression in question – the impossibility to provide a significant difference (step) of the tax burden progression in the whole interval of the taxpayer's income. What makes this research practically significant is that the proposed methodology allows us to take into account the actual tax burden in modelling the parameters of the relative progression.
{"title":"Modelling of a relative income tax bracket-based progression with the effect of a slower tax burden growth","authors":"D. Lapov, I. Mayburov","doi":"10.15826/jtr.2021.7.2.096","DOIUrl":"https://doi.org/10.15826/jtr.2021.7.2.096","url":null,"abstract":"This study aims to model the distribution of the tax burden in schedular progressive taxation and to describe the key characteristics of such models, in particular their differences from the models based on continuously increasing smooth functions of the relationship between the tax burden and the taxpayer's income. Our hypothesis is that the use of the Gompertz function to model the main indicators of tax burden distribution of the schedular progressive income tax will help us approximate and formalize the distribution of the tax burden in a relative income tax bracket-based progression. Our research relies on the hypothetico-deductive model, more specifically, on mathematical hypothesis testing. The methodological framework comprises models of progressive taxation and mathematical methods, including data approximation based on the use of the Gompertz function, analysis of the antiderivative and convexity of functions and their properties. The resulting model can be used to describe the dynamic characteristics of the relationship between the tax burden and certain parameters of schedular taxation. This model can help identify the level of income beyond which the progression of the tax burden becomes formal and does not generate commensurately high revenue growth. The existence of such income level results in what can be considered the key drawback of the relative progression in question – the impossibility to provide a significant difference (step) of the tax burden progression in the whole interval of the taxpayer's income. What makes this research practically significant is that the proposed methodology allows us to take into account the actual tax burden in modelling the parameters of the relative progression.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43512347","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.15826/jtr.2021.7.2.093
Georgy A. Borshchevskiy, Nodar Z. Mossaki
The study aims to identify the milestone events in the development of the tax administration in post-Soviet Russia and to offer recommendations for its further improvement. We tested the hypothesis about the relationship between the development of the tax system and tax administration, which, once established, can play a role in the improvement of the tax administration’s efficiency. The study relies on quantitative (regression and correlation analysis, factor analysis, principal component analysis) and qualitative methods (classification, thesaurus analysis, SWOT-analysis, critical points method). We also analyzed the legal acts describing the goals (target indicators) for the development of the tax system and tax administration and propose a set of integral indices characterizing these processes. The key events (factors) for the period starting from the 1990s to the present were identified and ranked in order of importance. Their impact was investigated with the help of SWOT-analysis and factor analysis methods. We found that in the given period, there was an increase in the correspondence between the goals of the tax administration and the goals of the tax system. This means that the tax administration’s management and staff have become more motivated to upscale their priorities and to orient their activities towards public good. The analysis of indices for the given periods has shown improved performance of the tax system and tax administration. The index of tax administration development is based on four indicators. Between the 1990s and 2010s, the index grew by 13% mainly because of the expanded scope of functions of the tax administration, staff downsizing and optimization of the remuneration system. We found that there is a significant statistical relationship between the indices of development of the tax system and tax administration.
{"title":"Development of the tax administration in Russia: Results and prospects","authors":"Georgy A. Borshchevskiy, Nodar Z. Mossaki","doi":"10.15826/jtr.2021.7.2.093","DOIUrl":"https://doi.org/10.15826/jtr.2021.7.2.093","url":null,"abstract":"The study aims to identify the milestone events in the development of the tax administration in post-Soviet Russia and to offer recommendations for its further improvement. We tested the hypothesis about the relationship between the development of the tax system and tax administration, which, once established, can play a role in the improvement of the tax administration’s efficiency. The study relies on quantitative (regression and correlation analysis, factor analysis, principal component analysis) and qualitative methods (classification, thesaurus analysis, SWOT-analysis, critical points method). We also analyzed the legal acts describing the goals (target indicators) for the development of the tax system and tax administration and propose a set of integral indices characterizing these processes. The key events (factors) for the period starting from the 1990s to the present were identified and ranked in order of importance. Their impact was investigated with the help of SWOT-analysis and factor analysis methods. We found that in the given period, there was an increase in the correspondence between the goals of the tax administration and the goals of the tax system. This means that the tax administration’s management and staff have become more motivated to upscale their priorities and to orient their activities towards public good. The analysis of indices for the given periods has shown improved performance of the tax system and tax administration. The index of tax administration development is based on four indicators. Between the 1990s and 2010s, the index grew by 13% mainly because of the expanded scope of functions of the tax administration, staff downsizing and optimization of the remuneration system. We found that there is a significant statistical relationship between the indices of development of the tax system and tax administration.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43952787","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.15826/jtr.2021.7.2.098
K. Rudy
The article discusses changes in the tax burden in election and post-election years in countries with different levels of economic and political development. The study uses the data on 121 countries for the period between 1991 and 2019 to test two hypotheses: 1) in election years, governments tend to boost spending while in post-election years government expenditures decline, which determines a similar dynamic of the tax burden; 2) in election years the tax burden decreases and in post-election years it either increases or decreases at a slower rate than in election periods. Methodologically, the study relies on multi-factor regression analysis of panel data. As a result, the first hypothesis is confirmed for high-income countries where the governments increase their spending to ensure the incumbent’s re-election and cut their expenditures after the election. In developed countries, in election years, the government’s spending was 0.4% higher than in other periods. In developed countries, governments were motivated to raise rather than reduce the tax burden in order to compensate for their increased expenditures. No common pattern of declining tax burden in election periods was detected for all observed countries, for groups of countries by income level (high-income, middle- or low-income) or for groups of countries by political regime type (democratic and non-democratic– hybrid or authoritarian). However, the analysis of the annual data on taxes has shown that the decline in the tax burden can occur in countries with developing economic and political systems as was the case with Armenia, Russia and Ukraine in 1992–2019. In general, the findings demonstrate that the governments are more prone to using monetary and fiscal rather than tax instruments in election periods.
{"title":"Political tax cycles: Cyclicality of the tax burden in election periods","authors":"K. Rudy","doi":"10.15826/jtr.2021.7.2.098","DOIUrl":"https://doi.org/10.15826/jtr.2021.7.2.098","url":null,"abstract":"The article discusses changes in the tax burden in election and post-election years in countries with different levels of economic and political development. The study uses the data on 121 countries for the period between 1991 and 2019 to test two hypotheses: 1) in election years, governments tend to boost spending while in post-election years government expenditures decline, which determines a similar dynamic of the tax burden; 2) in election years the tax burden decreases and in post-election years it either increases or decreases at a slower rate than in election periods. Methodologically, the study relies on multi-factor regression analysis of panel data. As a result, the first hypothesis is confirmed for high-income countries where the governments increase their spending to ensure the incumbent’s re-election and cut their expenditures after the election. In developed countries, in election years, the government’s spending was 0.4% higher than in other periods. In developed countries, governments were motivated to raise rather than reduce the tax burden in order to compensate for their increased expenditures. No common pattern of declining tax burden in election periods was detected for all observed countries, for groups of countries by income level (high-income, middle- or low-income) or for groups of countries by political regime type (democratic and non-democratic– hybrid or authoritarian). However, the analysis of the annual data on taxes has shown that the decline in the tax burden can occur in countries with developing economic and political systems as was the case with Armenia, Russia and Ukraine in 1992–2019. In general, the findings demonstrate that the governments are more prone to using monetary and fiscal rather than tax instruments in election periods.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46523507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-29DOI: 10.15826/JTR.2021.7.1.087
E. Leontev, Y. Leontyeva
Efficient and reliable public transport is of prime concern to city dwellers. To function efficiently, public transport generally needs subsidies from the state or local government. Our goal was to design and develop an alternative model of property tax that would provide financing for public transport. It was hypothesised that if the market value of real estate depends on the proximity of public transport, property tax can be a reliable source of financing for public transport. Based on the hedonic pricing theory, we used multiple regression to measure the impact of public transport proximity on the value of residential property. The data on the market value of property and property tax was taken from statistical tax reporting forms of the Federal Tax Service. The data on various public transport infrastructure facilities was used from the specialized open registers. We tested our alternative model of property tax, using the case of the Ekaterinburg Metro and the Tram and Trolleybus Company, through regression analysis of 7,685 objects of residential property in the City of Ekaterinburg. It was found that the efficiency of the underground service is higher than that of the city’s tram network. On the average, the proximity of underground stations increases the value of housing by over 6%. As predictive estimation of the amount of tax determined by the proximity of public transport showed, the alternative model of property tax is sufficient to cover capital expenditures of the city’s public transport operators and could, therefore, contribute to further expansion and modernization of the transport network. For citation Leontev E.V., Leontyeva Yu.V. Individual property tax to fund public transport. Journal of Tax Reform. 2021;7(1):6–19. DOI: 10.15826/jtr.2021.7.1.087 Article info Received January 10, 2021; Revised March 14, 2021; Accepted April 9, 2021
{"title":"Individual property tax to fund public transport","authors":"E. Leontev, Y. Leontyeva","doi":"10.15826/JTR.2021.7.1.087","DOIUrl":"https://doi.org/10.15826/JTR.2021.7.1.087","url":null,"abstract":"Efficient and reliable public transport is of prime concern to city dwellers. To function efficiently, public transport generally needs subsidies from the state or local government. Our goal was to design and develop an alternative model of property tax that would provide financing for public transport. It was hypothesised that if the market value of real estate depends on the proximity of public transport, property tax can be a reliable source of financing for public transport. Based on the hedonic pricing theory, we used multiple regression to measure the impact of public transport proximity on the value of residential property. The data on the market value of property and property tax was taken from statistical tax reporting forms of the Federal Tax Service. The data on various public transport infrastructure facilities was used from the specialized open registers. We tested our alternative model of property tax, using the case of the Ekaterinburg Metro and the Tram and Trolleybus Company, through regression analysis of 7,685 objects of residential property in the City of Ekaterinburg. It was found that the efficiency of the underground service is higher than that of the city’s tram network. On the average, the proximity of underground stations increases the value of housing by over 6%. As predictive estimation of the amount of tax determined by the proximity of public transport showed, the alternative model of property tax is sufficient to cover capital expenditures of the city’s public transport operators and could, therefore, contribute to further expansion and modernization of the transport network. For citation Leontev E.V., Leontyeva Yu.V. Individual property tax to fund public transport. Journal of Tax Reform. 2021;7(1):6–19. DOI: 10.15826/jtr.2021.7.1.087 Article info Received January 10, 2021; Revised March 14, 2021; Accepted April 9, 2021","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43066314","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.15826/JTR.2021.7.1.092
Y. Wang, Zhangwen Li
Since 1991, China has implemented two significant tax reforms. The first reform, in 1994, was a large-scale adjustment of the tax distribution system between the central and local governments, and the second reform, in 2012, replaced business tax with value-added tax. Also, the size of China’s underground economy decreased from 13.55% in 1995 to 12.30% in 2016. The paper presents an evaluation of the effect of the two tax reforms and the existing underground economy on GDP growth in China. GDP is defined as explained variable, the explanatory variables include: the ratio of declared income to actual income, the change of concealed income, and the influence of tax rate change on declared income and concealed income. According to the tax reform in 1994 and 2012, two dummy variables are set respectively. In methodology, this paper uses Simultaneous equations model, SUR-OLSs and Slutsky identity. Our estimation is based on the official statistics of China National Bureau of Statistics in the period from 1991 to 2019. In empirical analysis, we decomposed tax changes into tax rate effect (change of budget constraint slope) and income effect (change of tax liability), then analyzed the impact of tax elasticity on GDP growth. The empirical results demonstrate that both the 1994 tax reform and 2012 tax reform have had a positive impact on GDP, with high statistical significance respectively. The results also confirm that the increase of tax rate leads to the increase of hidden income, which eventually leads to the decrease of GDP. The offered methodology can also be applied to most countries for time series analyses.
{"title":"Underground economy and GDP growth: Evidence from China’s tax reforms","authors":"Y. Wang, Zhangwen Li","doi":"10.15826/JTR.2021.7.1.092","DOIUrl":"https://doi.org/10.15826/JTR.2021.7.1.092","url":null,"abstract":"Since 1991, China has implemented two significant tax reforms. The first reform, in 1994, was a large-scale adjustment of the tax distribution system between the central and local governments, and the second reform, in 2012, replaced business tax with value-added tax. Also, the size of China’s underground economy decreased from 13.55% in 1995 to 12.30% in 2016. The paper presents an evaluation of the effect of the two tax reforms and the existing underground economy on GDP growth in China. GDP is defined as explained variable, the explanatory variables include: the ratio of declared income to actual income, the change of concealed income, and the influence of tax rate change on declared income and concealed income. According to the tax reform in 1994 and 2012, two dummy variables are set respectively. In methodology, this paper uses Simultaneous equations model, SUR-OLSs and Slutsky identity. Our estimation is based on the official statistics of China National Bureau of Statistics in the period from 1991 to 2019. In empirical analysis, we decomposed tax changes into tax rate effect (change of budget constraint slope) and income effect (change of tax liability), then analyzed the impact of tax elasticity on GDP growth. The empirical results demonstrate that both the 1994 tax reform and 2012 tax reform have had a positive impact on GDP, with high statistical significance respectively. The results also confirm that the increase of tax rate leads to the increase of hidden income, which eventually leads to the decrease of GDP. The offered methodology can also be applied to most countries for time series analyses.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67258715","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.15826/jtr.2021.7.3.103
A. Kireenko
Russian universities are trying to promote their scientific journals in international citation bases and are making attempts to publish their journals in English. The aim of the study is to examine how can this strategy help to increase the international visibility of Russian tax research and tax journals. The literature review was conducted to investigate the role of scientific journal in faculty’s and university’s ranking. Non-random sampling survey was conducted with on-line questionnaire in September 2021 to examine Russian faculty and academics foreign language publications with connection to their foreign language skills. Based on the literature review we indicated three groups of ranking affecting factors: economic factors (author geographic affiliation, size of university or department, presence of strong business schools, academic training outside), co-authorship (international collaboration, number, gender and quality of co-authors) and individual characteristics (journal’s specialization and quality, faculty’s PHD-affiliation and language skills). We found that 95% of the survey participants have publications in foreign language. The significant relationship between the number of publications and the level of language proficiency exists only for participants who have more than 30 foreign language publications. The 89% of respondents who indicated that they never use a foreign language in their professional activities also have foreign language publications, and 15% of them have publications in journals Web of Science and Scopus (Q1 and Q2). Our findings indicated that the lack of language proficiency is not the main handicap for progression of the Russian research and journals visibility in international level. The main challenge is that we need to direct the research to an audience who might not at all be interested or knowledgeable about the national research context. Based on the obtained results, the recommendations were offered to potential contributors of articles in English and editorial boards.
俄罗斯大学正在努力在国际引文库中推广其科学期刊，并正在尝试用英文出版其期刊。本研究的目的是研究这一策略如何有助于提高俄罗斯税务研究和税务期刊的国际知名度。摘要本研究旨在探讨科技期刊在教师排名和大学排名中的作用。2021年9月，通过在线问卷进行了非随机抽样调查，以检查俄罗斯教师和学者的外语出版物与他们的外语技能有关。根据文献综述，我们指出了三组影响排名的因素:经济因素(作者的地理位置、大学或院系的规模、强大商学院的存在、外部学术培训)、合著者(国际合作、合著者的数量、性别和质量)和个人特征(期刊的专业化和质量、教师的博士学位归属和语言技能)。我们发现95%的调查参与者有外文出版物。出版物数量与语言能力水平之间的显著关系仅存在于拥有超过30种外语出版物的参与者。89%的受访者表示他们在专业活动中从不使用外语，他们也有外语出版物，其中15%的人在Web of Science和Scopus期刊上发表过文章(Q1和Q2)。我们的研究结果表明，缺乏语言能力并不是阻碍俄罗斯研究和期刊在国际上知名度提高的主要障碍。主要的挑战是，我们需要将研究导向可能对国家研究背景根本不感兴趣或不了解的受众。根据获得的结果，向英文文章的潜在撰稿人和编辑委员会提出了建议。
{"title":"Improving tax journal’s international visibility: Findings from literature review and faculty survey","authors":"A. Kireenko","doi":"10.15826/jtr.2021.7.3.103","DOIUrl":"https://doi.org/10.15826/jtr.2021.7.3.103","url":null,"abstract":"Russian universities are trying to promote their scientific journals in international citation bases and are making attempts to publish their journals in English. The aim of the study is to examine how can this strategy help to increase the international visibility of Russian tax research and tax journals. The literature review was conducted to investigate the role of scientific journal in faculty’s and university’s ranking. Non-random sampling survey was conducted with on-line questionnaire in September 2021 to examine Russian faculty and academics foreign language publications with connection to their foreign language skills. Based on the literature review we indicated three groups of ranking affecting factors: economic factors (author geographic affiliation, size of university or department, presence of strong business schools, academic training outside), co-authorship (international collaboration, number, gender and quality of co-authors) and individual characteristics (journal’s specialization and quality, faculty’s PHD-affiliation and language skills). We found that 95% of the survey participants have publications in foreign language. The significant relationship between the number of publications and the level of language proficiency exists only for participants who have more than 30 foreign language publications. The 89% of respondents who indicated that they never use a foreign language in their professional activities also have foreign language publications, and 15% of them have publications in journals Web of Science and Scopus (Q1 and Q2). Our findings indicated that the lack of language proficiency is not the main handicap for progression of the Russian research and journals visibility in international level. The main challenge is that we need to direct the research to an audience who might not at all be interested or knowledgeable about the national research context. Based on the obtained results, the recommendations were offered to potential contributors of articles in English and editorial boards.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67258621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.15826/jtr.2021.7.3.104
D. Fedotov
The study is devoted to verification the hypothesis that a higher tax burden does not necessarily lead to the growth in the shadow economy in Russian regions. The cross-regional comparative analysis was undertaken to measure the influence of the tax burden on the shadow economy. The analysis used Rosstat workforce surveys data about the number of informal workers nationwide and by sector from 2007 to 2019. Stochastic factor analysis was used to examine the relationship between the share of informal workers and such factors as the tax burden, GRP per capita, advanced production technologies, innovation activities of organizations, industrial sectors’ and social sectors’ contribution to GRP. To determine the strength of the relationship between the factors and the resultant indicator, a correlation and cluster analysis were conducted. It has shown that there is an inverse correlation between the tax burden and informal employment. Regions with a lower tax burden tend to have higher rates of informal employment (in 2019, the correlation coefficient was –0.4274). A similar inverse correlation is observed for the level of informal employment and the macro-economic indicators – GRP per capita, innovation, and the contribution of industrial sectors to GRP. There is a direct correlation between informal employment and the contribution of social sectors to GRP. These findings shed light on the key factors conducive to the growth in the shadow economy: what matters most is the economic and innovation lag in the development of certain regions. The results of this research can be useful for policy-makers seeking to address the problem of the shadow economy in regions.
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Pub Date : 2021-01-01DOI: 10.15826/JTR.2021.7.1.091
A. Shapovalova, Y. B. Ivanov, V. Tyschenko, V. Karpova
The global economy has rebounded from the lows of 2020, but its recovery will depend on innovations Therefore, it is important to identify the most effective tax support instruments for the innovation activities of small and medium-sized enterprises (SMEs) that are used in the framework of anti-crisis economic policies in the OECD countries It is suggested that tax incentives are the most effective tax instrument of all;the effectiveness of the profit tax benefit depends on the SME's profitability;as to the social insurance and pension contribution, there is an allowable minimum of the rate, determined by the level of wages, that will stimulate innovation To assess the effectiveness of tax support tools, the study used the methods of linear multivariate regression and simulation in Simulink The source of information for regression analysis was the data published by the World Bank and the Organization for Economic Cooperation and Development (OECD) It was concluded that the most effective measures of tax support are tax incentives, as well as deferred payment of social insurance and pension contributions The 10% profit tax was shown to be optimal to stimulate innovation provided the company keeps the saved profit for development For innovative SMEs, the minimum allowable contribution rate for social insurance and pension provision, which stimulates their innovative activities, is 12% The results of modeling confirmed that the proposed threshold indicators for supporting SMEs' innovation activity can be an effective tool for overcoming the consequences of the global crisis caused by the COVID-19 pandemic
{"title":"Assessment of the effectiveness of anti-COVID tax support for innovation activities of small and medium-sized enterprises in OECD countries","authors":"A. Shapovalova, Y. B. Ivanov, V. Tyschenko, V. Karpova","doi":"10.15826/JTR.2021.7.1.091","DOIUrl":"https://doi.org/10.15826/JTR.2021.7.1.091","url":null,"abstract":"The global economy has rebounded from the lows of 2020, but its recovery will depend on innovations Therefore, it is important to identify the most effective tax support instruments for the innovation activities of small and medium-sized enterprises (SMEs) that are used in the framework of anti-crisis economic policies in the OECD countries It is suggested that tax incentives are the most effective tax instrument of all;the effectiveness of the profit tax benefit depends on the SME's profitability;as to the social insurance and pension contribution, there is an allowable minimum of the rate, determined by the level of wages, that will stimulate innovation To assess the effectiveness of tax support tools, the study used the methods of linear multivariate regression and simulation in Simulink The source of information for regression analysis was the data published by the World Bank and the Organization for Economic Cooperation and Development (OECD) It was concluded that the most effective measures of tax support are tax incentives, as well as deferred payment of social insurance and pension contributions The 10% profit tax was shown to be optimal to stimulate innovation provided the company keeps the saved profit for development For innovative SMEs, the minimum allowable contribution rate for social insurance and pension provision, which stimulates their innovative activities, is 12% The results of modeling confirmed that the proposed threshold indicators for supporting SMEs' innovation activity can be an effective tool for overcoming the consequences of the global crisis caused by the COVID-19 pandemic","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67258636","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.15826/jtr.2021.7.3.099
E. Balatsky, N. Ekimova
The study tests the hypothesis that Russia’s transition from flat to progressive income taxation will produce revenue that would be sufficient for the advancement of high-tech industries. To test this hypothesis, we considered two scenarios of the reform – the two-tiered system, which has been implemented since 2021, and the project of a four-tiered system proposed by the Liberal Democratic Party. To estimate the effects of the tax reform, we calculated the revenues from taxing high-income taxpayer groups and subgroups at specific tax rates. As a result, it was found that the reform could produce 187 billion Rubles in extra revenue, which means that there is a vast discrepancy between the calculated estimates and the government’s expectations (60 billion Rubles). In other words, the Russian government significantly underestimates the potential of the income tax. According to the second scenario, which aims to build a more sophisticated income tax system, the revenue would be 1.1 trillion Rubles. Thus, a well-designed scale of the personal income tax will enable the government to considerably enhance this tool’s fiscal efficiency. The calculations of the extra revenue generated by the reform relied on the statistics of the World Inequality Database (WID) for 2019. To test the relevance of the input and output data, we conducted a comparative analysis at the micro-level by looking at the wage levels in Russian, American and European space corporations. We found that the micro-economic data are closer to the WID statistics rather than to Rosstat, which confirmed the accuracy of our results. Our calculations have confirmed the general hypothesis and showed that the extra revenue from the reform will enable the government to fully modernize microelectronics and the geothermal industry in Russia.
{"title":"Progressive income tax as a driver for the development of high-tech industries in Russia","authors":"E. Balatsky, N. Ekimova","doi":"10.15826/jtr.2021.7.3.099","DOIUrl":"https://doi.org/10.15826/jtr.2021.7.3.099","url":null,"abstract":"The study tests the hypothesis that Russia’s transition from flat to progressive income taxation will produce revenue that would be sufficient for the advancement of high-tech industries. To test this hypothesis, we considered two scenarios of the reform – the two-tiered system, which has been implemented since 2021, and the project of a four-tiered system proposed by the Liberal Democratic Party. To estimate the effects of the tax reform, we calculated the revenues from taxing high-income taxpayer groups and subgroups at specific tax rates. As a result, it was found that the reform could produce 187 billion Rubles in extra revenue, which means that there is a vast discrepancy between the calculated estimates and the government’s expectations (60 billion Rubles). In other words, the Russian government significantly underestimates the potential of the income tax. According to the second scenario, which aims to build a more sophisticated income tax system, the revenue would be 1.1 trillion Rubles. Thus, a well-designed scale of the personal income tax will enable the government to considerably enhance this tool’s fiscal efficiency. The calculations of the extra revenue generated by the reform relied on the statistics of the World Inequality Database (WID) for 2019. To test the relevance of the input and output data, we conducted a comparative analysis at the micro-level by looking at the wage levels in Russian, American and European space corporations. We found that the micro-economic data are closer to the WID statistics rather than to Rosstat, which confirmed the accuracy of our results. Our calculations have confirmed the general hypothesis and showed that the extra revenue from the reform will enable the government to fully modernize microelectronics and the geothermal industry in Russia.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67258732","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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