China's 2004 value-added tax(VAT)pilot reform in the Northeast region,which changed the VAT from production type to consumption type,introduced a sizable tax credit for fixed investment in manufacturing industries...China's 2004 value-added tax(VAT)pilot reform in the Northeast region,which changed the VAT from production type to consumption type,introduced a sizable tax credit for fixed investment in manufacturing industries,leading to more investment and higher productivity at firm level.This paper,however,uses difference-in-difference estimation and finds a negative structural effect;that is,the VAT pilot reform leads to a reduction in the export sophistication of Northeast cities relative to other cities in China,and the results hold for a battery of robustness checks.It is found that resources are reallocated towards less-sophisticated industries.As the products with higher export sophistication are more skill and research and development(R&D)intensive,the shortfalls of skilled labor and R&D spending hinder the upgrading process.With a new round of revitalization plans in the Northeast,policymakers should be cautious with similar structural effects and focus on increasing skilled labor supply and R&D investment.展开更多
The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit sh...The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.展开更多
In handling the fiscal relations between the central and local governments,especially in relation to taxation,the method of revenue-sharing has been widely adopted.Findings of this study show that when the intergovern...In handling the fiscal relations between the central and local governments,especially in relation to taxation,the method of revenue-sharing has been widely adopted.Findings of this study show that when the intergovernmental division of administrative authority and spending responsibility is relatively stable,tax-sharing is superior to revenue-sharing,and that tax-sharing should take precedent over revenue-sharing in future tax and fiscal reforms.Reform initiatives should include measures to significantly reduce value-added tax(VAT)rates and classify it as central tax,to collect retail sales tax in commodity consumption as a local tax and to cancel the business tax.Under this system,the main types of taxes levied by the central government include VAT,corporate income tax and consumption tax,personal income tax is imposed by provincial governments,retail sales tax by county governments.展开更多
基金supported by the National Natural Science Foundation of China(Nos.71803159,71703130)Ministry of Education Project of Humanities and Social Sciences(No.19YJC790061)the Fundamental Research Funds for the Central Universities(No.JBK2007086).
文摘China's 2004 value-added tax(VAT)pilot reform in the Northeast region,which changed the VAT from production type to consumption type,introduced a sizable tax credit for fixed investment in manufacturing industries,leading to more investment and higher productivity at firm level.This paper,however,uses difference-in-difference estimation and finds a negative structural effect;that is,the VAT pilot reform leads to a reduction in the export sophistication of Northeast cities relative to other cities in China,and the results hold for a battery of robustness checks.It is found that resources are reallocated towards less-sophisticated industries.As the products with higher export sophistication are more skill and research and development(R&D)intensive,the shortfalls of skilled labor and R&D spending hinder the upgrading process.With a new round of revitalization plans in the Northeast,policymakers should be cautious with similar structural effects and focus on increasing skilled labor supply and R&D investment.
文摘The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.
文摘In handling the fiscal relations between the central and local governments,especially in relation to taxation,the method of revenue-sharing has been widely adopted.Findings of this study show that when the intergovernmental division of administrative authority and spending responsibility is relatively stable,tax-sharing is superior to revenue-sharing,and that tax-sharing should take precedent over revenue-sharing in future tax and fiscal reforms.Reform initiatives should include measures to significantly reduce value-added tax(VAT)rates and classify it as central tax,to collect retail sales tax in commodity consumption as a local tax and to cancel the business tax.Under this system,the main types of taxes levied by the central government include VAT,corporate income tax and consumption tax,personal income tax is imposed by provincial governments,retail sales tax by county governments.
