This year's survey took place April 2-11, roughly a month after new income tax schedules
associated with Republican tax cuts passed in December went into effect.
p_p_id=56_INSTANCE_XDy6pHr4GXwN&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&p_p_col_id=column-main&p_p_col_count=3&_56_INSTANCE_XDy6pHr4GXwN_languageld=en_US) () () at the IAE Congress that examines the responsiveness of firms to corporate income tax schedules
. The study finds that firms tend to 'bunch up' at threshold levels of corporate income tax rates, suggesting that South African firms react quickly to changes in the rate of tax levied but that much of this response is due to changes in reporting behaviour and not economic activity.
(1977), "Voting over Income Tax Schedules", in Journal of Public Economics, vol.
This result is very intuitive: the size of different income groups, the distribution of income, the political power of different income groups and the size of the administrative costs shape the trade-off behind the choice of a complex personal income tax schedule. In particular, the benefit of tax complexity is larger for a more unequal income distribution and for a higher political power of the group which would take advantage from differentiation.
After providing evidence for the Italian case, our probabilistic voting model shows that reducing the number of tax rates of the personal income tax schedule by grouping individuals of different income levels in the same tax bracket involves a trade-off: on one side it reduces the political support by individuals, who necessarily will pay a tax rate different from their preferred one, while on the other side it also reduces the administrative costs of taxation.
He considers progressive capital income tax schedules
taking a simple two-bracket form with an exemption bracket at the bottom and a single marginal tax rate above a time-varying exemption threshold.
Of particular interest was the excellent paper by Harris (1994), who compared before-tax and after-tax damage awards using a model which incorporated progressive federal and state income tax schedules
into the calculations.
This gives rise to the inequity that a country applying a royalty and a low income tax schedule
is penalised in this study when compared to a country which does not apply a royalty but may have an income tax schedule
whose effect is more unfavourable.