Revenue trends and tax policy in brief economic growth is expected to remain in line with the october 2016 forecast. The effect of income taxation on consumption and labor. Almost all countries now levy general consumption taxes. The consumption tax approach is one that at least places part of the burden of financing the welfare system on current recipients. Addressing the tax challenges of the digital economy. Of this amount, vat has become the largest tax on general consumption, bringing in 19. Consumption tax trends provides information on value added taxgoods and services tax vatgst and excise duty rates in oecd member countries. Under a consumption tax system all savings would be taxfree, it would all be taxed like a 401k, but the question is if people dont get the special tax break will they still be. Economic growth and energy consumption in 12 european. We would enact what looks like a consumption tax, but what really is a wage tax, by forgiving the tax on old capital and vice versa.
Yet an analysis of the past relationship between household liabilities and expenditures provides little support for this. The taxes on general consumption, such as vat, currently raise an average of 20. Consumption tax trends 2014 oecd reports published deloitte. However, a consumption tax can also be structured as a form of direct, personal taxation, such as the hallrabushka. A flat consumption tax would be fair and efficient the. Consumption tax and interest rates 175 2 then extends the analysis to an economy in which the saving rate responds to changes in the net of tax rate of interest. The tax base of such a tax is the money spent on consumption. This paper was prepared for a conference on key issues in public finance, held at nyu, may 2006. This is about onefifth of overall government spending. In sum, we believe the proposal offers a very pragmatic and promising avenue for successfully integrating a welldesigned consumption tax into the existing federal tax system. In 20, oecd and g20 countries, working together on an equal footing, adopted a 15point action plan to address beps. Jun 09, 2012 the consumption tax approach is one that at least places part of the burden of financing the welfare system on current recipients.
Congress has the power to design a tax system to fund the necessary functions of government. The analysis of these two sections emphasizes that the shift to a consumption tax would eliminate the corporate tax on investment income as well as the personal tax on interest and. Please note that the following tables should not be completed by delegates. See chen and mintz, 2012 annual global tax competitiveness ranking a canadian good news story, spp research paper, 528, september 2012, figures 12. I dene deleveraging as a contemporaneous reduction in consumption and debt, paired with an increase in savings and savings rates. Recent trend in indian taxation system an overview of gst in rapid growth of indian econo my dr. Q e paper investigates the relationships between energy consumption and eco nomic growth for 12 european countries over years using data for the sample period of 2000 to 2012. Jan 08, 2020 japan, for example, added a 3% consumption tax to its income tax in 1989. The design of some of the proposed consumption taxes include, or would foster, exemptions from the base. Mar 02, 2015 the taxes on general consumption, such as vat, currently raise an average of 20. Trends in the consumption of electricity in the industry. With impending tax reforms, a comparison with other nations consumption tax may prove educational. Consumption tax trends provides information on value added taxgoods.
This paper analyses current trends in household energy consumption throughout the world. Auerbach university of california, berkeley, and nber may 6, 2006 currently visiting professor of law, new york university. Consumption tax regulations 2005 explanatory note this note does not form part of these regulations and is intended only to explain its purpose. Consumption tax trends 2014 vatgst and excise rates, trends and policy issues consumption tax trends provides information on value added tax goods and services tax vatgst and excise duty rates in oecd member countries. A federal consumption tax as replacement for the employer. Oecd publishes latest study on consumption tax trends.
In the current survey, 55% say they watched the news or a news program on television yesterday. All variables are expressed in january 2012 dollars. Gst is defined in article 366 12 a to mean any tax on supply of goods and service or both except ta xes on supply of the alcoholic liquor, human consumption. Among television news sources, the percentage saying they regularly watch local tv news has dipped below 50% for the first time 48%. Consumption tax trends provides information on value added taxgoods and services tax vatgst and excise duty rates in oecd. Recently introduction of gst goods and service tax by the cent ral government, is it play a important role for economy growth or gdp gross domestic product. Consumption can be separated into three componentsservices, durable goods that are expected to last more than three years e. Revenue and expenditure trends in local government introduction in 201011 municipalities budgeted to spend r191 billion on their operational budgets. Considering that people over 65 are forecast to rise to 40% of. The paper begins with an overview of the proposal that explains how the consumption. The different channels through which these taxes affect economic growth are dis cussed. Oecd tax database 1st january 2019 vat revenue ratio the italian standard vat rate is 22.
Japan raises sales tax for first time in 17 years bbc news. That is little changed from recent news consumption surveys. Depending on consumption measure, static estimates of the marginal welfare cost of revenueneutral taxation are 620 percent, which is about half the estimated welfare cost when additivity between consumption and leisure is incorrectly imposed. Consumption tax trends 2010 vatgst and excise rates, trends and administration issues this publication provides information on value added taxes, taxes on goods and services and excise duty rates in oecd member countries.
Other countries have different variants of consumption tax usually labeling theirs as value added tax vat. It took the passage of the 16th amendment in 19 to permit congress to create income taxes. Consumption tax trends 2012 vatgst and excise rates, trends and administration issues consumption tax trends provides information on value added taxgoods and services tax vatgst and excise duty rates in oecd member countries. The netherlands applies a reduced rate of 9% to a number of goods and services. The japanese consumption tax jct rose to 5% in 1997. In other words, the distinction between a wage tax and a consumption tax based on treatment of old capital may mislead an observer. The longterm trends in regular news consumption are generally similar to trends in where people got news yesterday. Alan garner p roposals for fundamental reform of the federal tax code are receiving increased attention in the business press and among economic analysts and policymakers. Growth effects of income and consumption taxes the effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capi tal. Watching, reading and listening to the news television continues to be the publics top daily news source. Consumption tax trends 2014 oecd reports published. Vat is an important source of revenue for oecd countries, representing on average approximately 20% of total tax revenues compared to 11.
Oecd tax database 1st january 2019 vat revenue ratio the dutch standard vat rate is 21. Japan, for example, added a 3% consumption tax to its income tax in 1989. A consumption tax can be designed to be progressive if it includes the following features exemptions. Pdf emerging trends in electricity consumption for. Pdf emerging trends in electricity consumption for consumer ict. Jan 07, 2015 more growth friendly sources of revenue, like consumption taxes and property taxes. This site is powered by keepeek 360, logiciel phototheque for business. Nov 16, 2015 congress has the power to design a tax system to fund the necessary functions of government. Oecd tax database 1st january 2019 vat revenue ratio the hungarian standard vat rate is 27. Rate schedules 1, 1p, 1s, 1t, 1w, dpr, 1ev, ev, 5, 5c, 5p, 6, gs1, dp1, gs2, gs2t. This is particularly true given the current debate about global warming and the need to reduce greenhouse gas emissions by conserving energy consumption, since any constraints put on energy consumption to help reduce emissions will have an effect on growth and development if causality from energy to gdp exists. Vatgst refers to value added tax goods and services tax source. Consumption tax trends netherlands vat rate 2019 1. One option for tax reform would fundamentally change how taxes are collected in the united states, and tax consumption instead of income.
Oecd 2014, consumption tax trends 2014, oecd publishing. Tax revenues are estimated to grow by 7 per cent in 201617, compared with. Individuals shifted consumption from goods to services, and they increased their consumption at internet retailers, many of whom do not collect sales taxes. These regulations are made under the consumption tax act 2003, which imposes consumption tax ct on taxable supplies of goods or services in tonga by registered persons, and on imports by any person. The consumption tax base can be defined in three alternative and equivalent ways.
Data and research on tax including income tax, consumption tax, dispute resolution, tax avoidance, beps, tax havens, fiscal federalism, tax administration, tax treaties and transfer pricing. Consumption tax trends 2012 vatgst and excise rates, trends and administration issues. Consumption tax trends 2012 guidelines for completing the tables delegates are asked to check andor complete the tables showing data as at 1 january 2012. Pdf there are many problems being observed in the taxation of electronic. Mar 03, 2005 under a consumption tax system all savings would be taxfree, it would all be taxed like a 401k, but the question is if people dont get the special tax break will they still be putting money. Get immediate access to the content online in all available formats, including pdf and epub to download. Consumption tax trends 2012 vatgst and excise rates, trends and administration issues consumption tax trends provides information on value added tax goods and services tax vatgst and excise duty rates in oecd member countries.
Oecd s dissemination platform for all published content books, serials and statistics. Addressing the tax challenges of the digital economy addressing base erosion and profit shifting is a key priority of governments around the globe. A value added tax vat is a tax on all goods and services at all business stages of production. Tax revenue collections, however, have underperformed. The sources of uncertainty may be idiosyncratic or aggregate and. I am grateful to dan shaviro for comments on an earlier. In 2012, a twopart tax increase to double the tax raised.
However, a consumption tax can also be structured as a form of direct, personal taxation, such as the hallrabushka flat tax. President bush has identified tax reform as a top priority, calling for a tax system that is progrowth, easy. Tax incentives violate the efficiency principle by lowering the tax cost below average, as implied by the general tax provisions, for a selected group of taxpayers. Consumption tax trends provides information on value added tax goods and services tax vatgst and excise duty rates in oecd member countries. Pdf trends in data centre energy consumption under the.
This analysis will become part of a broader analysis of trends in energy and transportation in 2001. A consumption tax is a tax levied on consumption spending on goods and services. An overview congressional research service summary commentary abounds suggesting the current u. Electricity consumption by rsa economic sectors 2012 0402 25 0 00 200000 300000 400000 forecast 500000 600000 700000 800000 1980 1990 2000 2010 2020 2030 2040 2050 2060 h rsa sales by economic sector residential agriculture commerce industry mining transport world economic recession very long term view. Robust revenue collection depends on strong economic growth and effective tax administration. In the 1990s, however, far more americans said they watched. Pramod gupta 3 1department of commerce, manav rachna international university 2department of mechanical engineering, manav rachna international university 3iet group of institutions mia, alwar abstract. First, subtracting investment from value added produces consumption as a tax base, where value added is the sum of capital and labor incomes. Intuitive models essentially use the experience of one or more key people to develop a forecast. It also has a responsibility to design a tax system that is fair and efficient. In particular it considers trends in household energy consumption. Consumption tax trends 2012 vatgst and excise rates, trends and administration issues chinese version. Data and research on consumption tax including indirect tax topics such as value added tax vat, goods and services tax gst, consumption taxes provisions, motor vehicles, tobacco and alcohol. It describes a range of other consumption taxation provisions on tobacco, alcoholic beverages and motor vehicles.
It also contains information about international aspects of vatgst developments and the efficiency of this tax. One hypothesis is that high pre crisis debt levels dragged on post crisis consumption growth 6 4 2 0. Decline in consumption was greater in regions of the us that had higher debt prior to the crisis dynan 2012 highly leveraged us mortgagors had larger declines in spending between 2007 2009 andersen, duus and jensen 2014 negative correlation between pre crisis ltv and change in consumption during crisis in denmark. Debt, delinquencies, and consumer spending jonathan mccarthy the sharp rise in household debt and delinquency rates over the last year has led to speculation that consumers will soon revert to more cautious spending behavior. Understanding the relationships of energy consumption in relation to the economy is very important task to ensure a stable economic develop ment. Japan has raised its consumption tax for the first time in 17 years in an attempt to rein in public debt. Consumption tax trends 2014 vatgst and excise rates, trends and policy issues consumption tax trends provides information on value added taxgoods and services tax vatgst and excise duty rates in oecd member countries. Oecd tax database 1st january 2019 vat revenue ratio the australian standard gst rate is 10. Vatgst and excise rates, trends and administration. The oecd in late 2014 conducted a study on the consumption trends of oecd countries. Trends in data centre energy consumption under the european code of conduct for data centre energy efficiency article pdf available in energies 1010. Extrapolative models take some trend or pattern and extrapolate it into the future. Consumption taxes are usually indirect, such as a sales tax or a valueadded tax. Prior to the passage of the 16th amendment to the constitution, the united states primarily raised government revenues using consumption taxes.
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