Changing Places, Changing Taxes: Exploiting Tax Discontinuities

President Trump’s decision to move his official state of residence from high-tax New York to no (income)-tax Florida has brought public attention to an issue that has long troubled scholars, designers and administrators of income tax systems: how the interaction of tax rules deferring the taxation of income and tax rules based on residency allows taxpayers to reduce and even avoid taxation of their deferred income. These discontinuities in tax treatment may lead to excessive migration, as well as reductions in state income tax revenues and distortions in the design of state taxing mechanisms. This Article explains what states would have to do to eliminate these avoidance opportunities. However, it also points out that many of these policy changes would create other tax discontinuities. Ultimately, it leaves open the question whether making any of these changes would lead to fewer financial and behavioral distortions.

Revenue

This chapter highlights Article X of the Colorado Constitution, dealing with revenue. It is one of the constitution’s most distinctive sections Detailed provisions lay out the state’s tax structure. Sections 3, 3.5, and 15 are extensive rules for property taxes and their equalization across the state. Sections 4 and 5 exempt public, religious, and charitable property. Sections 17 and 19 authorize and define the state income tax. Section 20, the Taxpayers Bill of Rights or TABOR requires prior voter consent to new or increased taxes and public debt and for public revenue above specified formulas. It also forbids specified taxes. The chapter explains in detail the many legal disputes about interpretation of this section.

The Financial Dilemma of Students Pursuing an Atmospheric Science Graduate Degree in the United States

Graduate school provides an opportunity for students to enhance their knowledge and skill sets and to develop the qualifications to seek high-skilled employment. However, many graduate students are plagued with personal and financial stressors that can decrease research productivity and professional growth. With ballooning student loan debt and economic inflation, stakeholders should review the financial well-being of our current and future graduate students with greater frequency to ensure the continued fast-paced advancement of science. This study investigated the annual stipend, university fees, housing costs, cost of living, and the state income tax rate of 39 atmospheric science graduate programs in the United States to determine the effective income for first-year graduate students in the 2020–21 academic year. Results showed a large spread in advertised stipend amounts ranging between $19,139 and $41,520 (USD). After taking into account annual university fees, housing costs, and state income tax and normalizing by the cost of living, effective income had a decreased spread ranging between $12,287 and $25,240. Prospective graduate students should not focus on the advertised stipend when deciding between schools since it does not always accurately represent the affordability of the graduate program. The future of scientific research relies on the next generation of scientists. Therefore, graduate programs across the country should focus on providing fair financial compensation in order to attract students with exceptional research skills who otherwise may leave academia to pursue higher-paying jobs after college.

Legal Environment and Corporate Tax Avoidance: Evidence from State Tax Codes

ABSTRACT This study examines the effect of legal environment on corporate state income tax avoidance. We find that the extent of penalties on corporate officers reduces state tax avoidance. However, we find no evidence that the extent of penalties on shareholders reduces state tax avoidance. Thus, the legal environment faced by managers has a greater deterrent effect on tax avoidance than does the legal environment faced by shareholders. Only when managerial ownership is high do we find evidence that shareholder penalties affect corporate tax avoidance behavior. Our study contributes to the literature on agency problems related to corporate tax reporting. JEL Classifications: H25; H26; H71; K34.

Evidence and projections on the progressivity of health care financing in Finland

This paper examined the distribution of health care financing in Finland in 1990-2012. In addition, the study provided insight to recent developments in the financing system, and analyzed various scenarios associated with the planned financing reform of 2020. The results indicated, that over the two decade study period overall progressivity first steadily decreased, and after turning regressive by 2006, returned to a progressive track leading to the highest level of measured progressivity by 2012. The distributional implications of the financing reform in the “stationary” scenario were shown to be significant; substituting revenue collected previously by local income taxes by an equiproportinate increase in state income tax revenue would increase the progressivity of overall financing to an unprecedentedly high level. In the “counterbalanced” scenario, where the state income tax scales were adjusted to correspond to the average income tax rate, the progressivity of overall financing increased more moderately. Finally, the “system-level” scenario indicated that taking into account recent changes in other financing sources outweighed the progressivity effect, and a slightly less progressive overall financing distribution would emerge in 2020 in comparison to 2012. The monetary effects of abolishing the public reimbursement scheme of private health services fees were shown to be rather small in magnitude, but the economic burden fell more heavily on low-income households. Published: Online May 2018.

IPTEKS PENGHITUNGAN PAJAK PENGHASILAN PASAL 21 BAGI PENGUSAHA KECIL BERDASARKAN PERATURAN MENTERI KEUANGAN REPUBLIK INDONESIA NOMOR 162/PMK.011/2012

Tax used by government for financing all operational to develop the state. Income tax article 21 is the one of tax usually for individual which is most important income for state. The most problem for income tax article 21 is miscalculation for most of individual as taxpayer. The application to calculate the income tax article 21 for this study is regulation of Finance Ministry of Republic of Indonesia number 162/PMK.011/2012.