The system of taxation of corporate profits, introduced in 2000 in Estonia, is unique. Under this system the reinvested profit is not taxed, only the distributed profit is taxed. Thus,…
Taxes
Abstract: It has been observed that while the respective theoretical merits of fiscal centralisation and decentralisation are debatable, it is even more difficult to empirically assess the degree of centralisation…
Abstract: The idea to compare the fiscal decentralisation and trends in this respect in the European countries is a core for the IREF project. This means that the strict rules of measurement of this complex issue, as fiscal decentralisation is, should be applied to all fiscal systems. Therefore I will follow the description how to generate the index of fiscal decentralisation invented and provided by the prof. Garello and Price . Nevertheless I will also describe and analyze problems which I have met when adopted this scheme into the Polish fiscal system.
Debates on the future of uropean integration usually centre on “what o do next?” Deepening or widening? Or both. The idea that perhaps we have gone far enough is not often explored. One area where it is almost taken for granted that “Europe must progress” is in taxation. Ever since the publication of the PRIMAROLO report much effort has been expended on emulating the OECD on the need to fight “harmful tax competition”.
Abstract : Just as it would be misleading to say that western economies are freemarket economies, it would be far from the truth to say that this region of the world is one in which intense tax competition is taking place. This state of affairs mirrors the opinion prevailing among national as well as European governments and representatives according to which tax competition can be harmful and therefore must be cautiously controlled.
Abstract: The Scandinavian countries of Denmark, Norway, and Sweden are similar in many respects, not least with regards to the basic administrative set-up: a non-federal task-related division between state, counties and municipalities. In all three countries, counties and municipalities raise a large share of their own revenue, which is then supplemented by government grants. In addition, central government redistributes large amounts of locally collected revenue between the municipalities and the counties respectively, severely hampering local budgetary autonomy.
Abstract: In this article, German federalism is analyzed through its implications for public spending and for public revenue. The structure of government spending and taxation has evolved in the direction of greater centralisation. This tendency reveals itself (1) in the constitutional changes with regard to taxation, (2) the major territorial reforms and (3) in the increased influence of the federal state on the public spending of inferior levels of government. The evening out between authorities is too egalitarian and the effects on economic development are nefarious.
Abstract: This article points to the highly centralized nature of the British tax system. A first section shows how all tax law derives from Parliament, the “onlie begetter” of legally enforceable instruments. It is suggested that this system is not democratically accountable at sub-national levels of government. Reforms of the Thatcher era have resulted in the privatization of many public services, leading to the stabilization of State expenditure as a proportion of GDP.
Abstract : Switzerland provides a potential laboratory for testing various hypotheses connected with tax competition because of its extremely decentralized fiscal system. Twenty-six cantons (some of them extremely small) have retained the ultimate power of deciding tax questions, and hence not only to limit the Federal level of the State to about 1/3 of total public expenditure, but also to retain absolute power to set their own levels of taxation. Furthermore, citizens can launch referenda on tax issues at any level of government.
Abstract: The main characteristic of the French local tax system undoubtedly resides in a convoluted structure which impedes any progress in the development of tax competition between local authorities. On the contrary, recent legislative evolutions make obvious a trend of recentralization of the French local finance system illustrated by the fact the State is presently the first tax contributor to the local authorities’ budgets.