Podcast on the Abolishment of the Real Estate Acquisition Tax in the Czech Republic by Martin Husek
In 1984, the Swiss Federal Court ruled that the marriage penalty, i.e. taxing married couples higher than unmarried ones, as unconstitutional. 37 years later, the penalty still exists, with over 700,000 couples in Switzerland affected. This has had serious implications for women’s labor market participation. While various alternatives to joint taxation are being discussed, individual taxation would not only eliminate any marriage penalties and bonuses, it would also incentivize female labor market participation most. If accompagnied by further policies such as affordable childcare and parental leave, individual taxation could play a significant role in the women’s struggle for equality.
In this episode of Tax Talk, we will be talking about last week’s G7 agreement to implement a global minimum tax rate, what it means, and how it affects developing countries and smaller economies.
Bibliography Allingham, G., & Sandmo, A. Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics 1, no. 3- 4, Nov. 1972, pp. 323–338. doi: 10.1016/0047-2727(72)90010-2 Brosio, G., Cassone, A. & Ricciuti, R. Tax Evasion Across Italy: Rational Noncompliance or Inadequate Civic Concern?. Public Choice 112, 259–273 (2002). doi: 10.1023/A:1019985022106 Chiarini B., Marzano E., & Schneider, F. Tax rates and tax evasion: an empirical analysis of the long-run aspects in Italy. Eur J Law Econ […]
Taxing the rich: Assessment of the French Solidarity Wealth tax from a political economy perspective
In 2017, President Emmanuel Macron repealed the French Solidarity Wealth tax (in French: Impôt de solidarité sur la fortune or ISF), in order to support investment, employment, innovation and economic growth in France. The ISF had to be paid by individuals whose estate exceeded the taxation threshold which was set at 1 300 000 EUR. This decision triggered a strong discontent among the lower-middle class, which has been captured by the yellow vests movement. The public pushback against the suppression of this specific tax may be very surprising as the economic consequences of the ISF were very disappointing. The deep nature of the dissatisfaction was eminently symbolic, as this wealth tax has been raised as a political symbol of the left-right ideological divide on taxation. President Emmanuel Macron chose to honor the individual freedom to enrich oneself and refused to reintroduce the ISF. By doing so, he confirmed the image of being a « President of the rich ». This determination in pursuing important fiscal reforms while ignoring popular opposition will certainly have political consequences, which will be assessable during next presidential elections that take place in April 2022.
While being a primary source of income for many developing and transitional countries, trade taxes such as tariffs arguably discourage the welfare-enhancing activity that international trade has been shown to be. Therefore, developing countries had been recommended to reduce the barriers to trade and open up their economies. The value-added tax, VAT, was key in the attempt to recoup the revenues lost in developing countries. But to what extent has the VAT actually been successful in doing so? Judging from the experience of developing countries, what factors make a successful substitution of trade revenues through VAT more likely? And what elements can account for the failure of VAT tax reform in a country such as Bangladesh?
Many homes with bricked up windows represent integral icons in British towns and cities. Why so? In this podcast, we dive back into history to discover the Window Tax, that was in effect for more than 150 years up until 1851. We shall explore why such a tax came about; what its intended and unintended consequences were, and what role it had in revenue collection for the Crown, alongside other indirect taxes. Finally, we shall take a look at how tax avoidance behavior has left a permanent and observable mark on architecture across the world. This is a story of incredible ingenuity on the part of Englishmen in asserting their liberties against parliament by exploiting loopholes in legislation to free themselves from the burdens of taxation.
This podcast episode talks about the major public health issues of obesity and diabetes and what could be done to solve them. The main focus lies on the sin tax on sugary drinks, or sugar-sweetened beverages, which was introduced in the USA in Berkeley, California in 2014. It explores what a sin tax is in general and its mechanics, while then diving deeper into the benefits but also possible downfalls of this instrument when it […]
“This is a tax world“, the weekly podcast to understand the complex world of taxation, the podcast for citizens who want to better understand how taxation structures our lives, but also what taxation looks like around the globe. For this episode we travel south of the Sahara, in Africa, to discover a very special type of tax administration, the Semi-Autonomous Revenue Authorities (SARAs), welcoming our expert on tax issues in developing countries: Ryad Selmani ! […]
Abstract The first episode of the Political Economy of Taxation Podcast deals with the EU’s intended Carbon Border Tax. A more detailed legal proposal is expected towards the end of the month. Thus, the aim is to give informative insights about the intended Carbon Border Tax to raise awareness just before the EU publicizes the proposal. The Carbon Border Tax intends to impose the same cost on imports that do not face carbon taxes outside […]