The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform
Clemens Fuest - One of the best experts on this subject based on the ideXlab platform.
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the role of the corporate Income Tax as an automatic stabilizer
International Tax and Public Finance, 2010Co-Authors: Thiess Buettner, Clemens FuestAbstract:This paper analyses the effectiveness of the corporate Income Tax as an automatic stabilizer. It employs a unique firm-level data set of German manufacturers combining financial statements with firm-specific information about credit market restrictions. The results show that approximately 20 per cent of all firms report both positive Taxable Income and capital market restrictions. Taking account of the Income Tax rates and the size differences of the firms, we find that demand stabilization through the corporate Income Tax amounts to about 8 per cent of an initial shock to gross revenues. This stabilization effect varies over the business cycle and tends to increase during cyclical downturns.
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does a simpler Income Tax yield more equity and efficiency
Social Science Research Network, 2008Co-Authors: Clemens Fuest, Andreas Peichl, Thilo SchaeferAbstract:This article investigates the impact of Tax simplification on various indicators of the efficiency of the Tax system and on the distribution of Income. The analysis is based on a simulation model (FiFoSiM) using German Income Tax and household survey microdata. We model Tax simplification as the abolition of a set of deductions from the Income Tax base. We find that this form of Tax base simplification leads to a reduction in the use of professional Tax advice, a more equitable Income distribution and an increase in Tax revenue. If this is combined with a reduction of Income Tax rates to preserve revenue neutrality, the effects depend on the type of rate schedule adjustment. The combination with a flat rate Tax increases Income inequality at the expense of the middle class, but it also leads to efficiency gains because Tax distortions of labour supply are reduced. The combination with a rate schedule adjustment, which preserves the directly progressive schedule reduces inequality but increases overall Tax distortions. We conclude that the effects of Tax base simplification on after Tax Income inequality and Tax distortions mainly depend on the type of Tax schedule adjustment.
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does a simpler Income Tax yield more equity and efficiency
CESifo Economic Studies, 2008Co-Authors: Clemens Fuest, Andreas Peichl, Thilo SchaeferAbstract:This article investigates the impact of Tax simplification on various indicators of the efficiency of the Tax system and on the distribution of Income. The analysis is based on a simulation model (FiFoSiM) using German Income Tax and household survey microdata. We model Tax simplification as the abolition of a set of deductions from the Income Tax base. We find that this form of Tax base simplification leads to a reduction in the use of professional Tax advice, a more equitable Income distribution and an increase in Tax revenue. If this is combined with a reduction of Income Tax rates to preserve revenue neutrality, the effects depend on the type of rate schedule adjustment. The combination with a flat rate Tax increases Income inequality at the expense of the middle class, but it also leads to efficiency gains because Tax distortions of labour supply are reduced. The combination with a rate schedule adjustment, which preserves the directly progressive schedule reduces inequality but increases overall Tax distortions. We conclude that the effects of Tax base simplification on after Tax Income inequality and Tax distortions mainly depend on the type of Tax schedule adjustment. (JEL Codes: D3, H2, J22)
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does a simpler Income Tax yield more equity and efficiency
CESifo Economic Studies, 2008Co-Authors: Clemens Fuest, Andreas Peichl, Thilo SchaeferAbstract:This article investigates the impact of Tax simplification on various indicators of the efficiency of the Tax system and on the distribution of Income. The analysis is based on a simulation model (FiFoSiM) using German Income Tax and household survey microdata. We model Tax simplification as the abolition of a set of deductions from the Income Tax base. We find that this form of Tax base simplification leads to a reduction in the use of professional Tax advice, a more equitable Income distribution and an increase in Tax revenue. If this is combined with a reduction of Income Tax rates to preserve revenue neutrality, the effects depend on the type of rate schedule adjustment. The combination with a flat rate Tax increases Income inequality at the expense of the middle class, but it also leads to efficiency gains because Tax distortions of labour supply are reduced. The combination with a rate schedule adjustment, which preserves the directly progressive schedule reduces inequality but increases overall Tax distortions. We conclude that the effects of Tax base simplification on after Tax Income inequality and Tax distortions mainly depend on the type of Tax schedule adjustment. (JEL Codes: D3, H2, J22) Copyright , Oxford University Press.
Thomas C. Omer - One of the best experts on this subject based on the ideXlab platform.
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does task specific knowledge improve audit quality evidence from audits of Income Tax accounts
Social Science Research Network, 2019Co-Authors: Nathan C. Goldman, M Harris, Thomas C. OmerAbstract:Two forms of expertise can influence audit quality: industry and task-specific expertise. Anecdotal evidence suggests that Tax knowledge is task-specific, rather than industry-specific and audit offices with increased exposure to complex Tax issues develop this task-specific expertise. Using outcomes related to audits of the Income Tax accounts, we examine whether Tax task-specific knowledge (TSK) affects the audit quality of the Income Tax accounts and find that Tax TSK increases the audit quality of the Income Tax accounts. We also find evidence of an improved response to misstatements among audit offices with Tax TSK, demonstrated by a decreased likelihood of future Tax misstatements following the disclosure of a Tax restatement. Finally, we observe the effect of Tax TSK among audit offices with lower levels of auditor-provided Tax services (APTS). This result suggests that audit offices without the benefit of knowledge spillover from APTS rely more on the Tax TSK.
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does task specific knowledge improve audit quality evidence from audits of Income Tax accounts
Social Science Research Network, 2017Co-Authors: Nathan C. Goldman, M Harris, Thomas C. OmerAbstract:Two forms of expertise can influence audit quality: industry and task-specific expertise. If Tax knowledge is task-specific rather than industry-specific, audit offices with increased exposure to complex Tax issues will develop this task-specific expertise. Using outcomes related to Income Tax account audits, we examine whether Tax task-specific knowledge (TSK) accumulates at the audit office level and affects the Income Tax accounts’ audit quality. We find that Tax TSK increases the Income Tax accounts' audit quality, suggesting individual Tax TSK accumulates at the office level. Additionally, semi-structured interviews of partners/senior managers at a Big 4 audit firms validate group processing theory as an explanation for TSK developing at the office level. We contribute to and extend the literature examining audit office expertise by providing evidence that exposure to complex Tax issues develop TSK. That TSK accumulates at the office level and enhances audit quality. These findings provide archival and qualitative evidence of how TSK develops at the office level.
Robert A Moffitt - One of the best experts on this subject based on the ideXlab platform.
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the negative Income Tax and the evolution of u s welfare policy
Journal of Economic Perspectives, 2003Co-Authors: Robert A MoffittAbstract:The negative Income Tax proposed by Milton Friedman represents one of the fundamental ideas of modern welfare policy. However, the academic literature has raised two difficulties with it, one challenging its purported work incentives and the other suggesting the possible superiority of work requirements. In addition, work requirement approaches have gained ground in actual U.S. welfare policy over the last 30 years and the number of different programs has proliferated, another development counter to the negative Income Tax. On the other hand, the Earned Income Tax Credit has produced a negative-Income-Tax-like program on a vast scale.
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milton friedman the negative Income Tax and the evolution of us welfare policy
2002Co-Authors: Robert A MoffittAbstract:The negative Income Tax proposed by Milton Friedman represents one of the fundamental ideas of modern welfare policy. However, the academic literature has raised two difficulties with it, one challenging its purported work incentives and the other suggesting the possible superiority of work requirements. In addition, work requirement approaches have gained ground in actual U.S. welfare policy over the last 30 years and the number of different programs has proliferated, another development counter to the negative Income Tax. On the other hand, the Earned Income Tax Credit has produced a negative-Income-Tax-like program on a vast scale.
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milton friedman the negative Income Tax and the evolution of us welfare policy
2002Co-Authors: Robert A MoffittAbstract:The negative Income Tax proposed by Milton Friedman represents one of the fundamental ideas of modern welfare policy. However, the academic literature has raised two difficulties with it, one challenging its purported work incentives and the other suggesting the possible superiority of work requirements. In addition, work requirement approaches have gained ground in actual U.S. welfare policy over the last 30 years and the number of different programs has proliferated, another development counter to the negative Income Tax. On the other hand, the Earned Income Tax Credit has produced a negative-Income-Tax-like program on a vast scale.
Thilo Schaefer - One of the best experts on this subject based on the ideXlab platform.
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does a simpler Income Tax yield more equity and efficiency
Social Science Research Network, 2008Co-Authors: Clemens Fuest, Andreas Peichl, Thilo SchaeferAbstract:This article investigates the impact of Tax simplification on various indicators of the efficiency of the Tax system and on the distribution of Income. The analysis is based on a simulation model (FiFoSiM) using German Income Tax and household survey microdata. We model Tax simplification as the abolition of a set of deductions from the Income Tax base. We find that this form of Tax base simplification leads to a reduction in the use of professional Tax advice, a more equitable Income distribution and an increase in Tax revenue. If this is combined with a reduction of Income Tax rates to preserve revenue neutrality, the effects depend on the type of rate schedule adjustment. The combination with a flat rate Tax increases Income inequality at the expense of the middle class, but it also leads to efficiency gains because Tax distortions of labour supply are reduced. The combination with a rate schedule adjustment, which preserves the directly progressive schedule reduces inequality but increases overall Tax distortions. We conclude that the effects of Tax base simplification on after Tax Income inequality and Tax distortions mainly depend on the type of Tax schedule adjustment.
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does a simpler Income Tax yield more equity and efficiency
CESifo Economic Studies, 2008Co-Authors: Clemens Fuest, Andreas Peichl, Thilo SchaeferAbstract:This article investigates the impact of Tax simplification on various indicators of the efficiency of the Tax system and on the distribution of Income. The analysis is based on a simulation model (FiFoSiM) using German Income Tax and household survey microdata. We model Tax simplification as the abolition of a set of deductions from the Income Tax base. We find that this form of Tax base simplification leads to a reduction in the use of professional Tax advice, a more equitable Income distribution and an increase in Tax revenue. If this is combined with a reduction of Income Tax rates to preserve revenue neutrality, the effects depend on the type of rate schedule adjustment. The combination with a flat rate Tax increases Income inequality at the expense of the middle class, but it also leads to efficiency gains because Tax distortions of labour supply are reduced. The combination with a rate schedule adjustment, which preserves the directly progressive schedule reduces inequality but increases overall Tax distortions. We conclude that the effects of Tax base simplification on after Tax Income inequality and Tax distortions mainly depend on the type of Tax schedule adjustment. (JEL Codes: D3, H2, J22)
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does a simpler Income Tax yield more equity and efficiency
CESifo Economic Studies, 2008Co-Authors: Clemens Fuest, Andreas Peichl, Thilo SchaeferAbstract:This article investigates the impact of Tax simplification on various indicators of the efficiency of the Tax system and on the distribution of Income. The analysis is based on a simulation model (FiFoSiM) using German Income Tax and household survey microdata. We model Tax simplification as the abolition of a set of deductions from the Income Tax base. We find that this form of Tax base simplification leads to a reduction in the use of professional Tax advice, a more equitable Income distribution and an increase in Tax revenue. If this is combined with a reduction of Income Tax rates to preserve revenue neutrality, the effects depend on the type of rate schedule adjustment. The combination with a flat rate Tax increases Income inequality at the expense of the middle class, but it also leads to efficiency gains because Tax distortions of labour supply are reduced. The combination with a rate schedule adjustment, which preserves the directly progressive schedule reduces inequality but increases overall Tax distortions. We conclude that the effects of Tax base simplification on after Tax Income inequality and Tax distortions mainly depend on the type of Tax schedule adjustment. (JEL Codes: D3, H2, J22) Copyright , Oxford University Press.
Nathan C. Goldman - One of the best experts on this subject based on the ideXlab platform.
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does task specific knowledge improve audit quality evidence from audits of Income Tax accounts
Social Science Research Network, 2019Co-Authors: Nathan C. Goldman, M Harris, Thomas C. OmerAbstract:Two forms of expertise can influence audit quality: industry and task-specific expertise. Anecdotal evidence suggests that Tax knowledge is task-specific, rather than industry-specific and audit offices with increased exposure to complex Tax issues develop this task-specific expertise. Using outcomes related to audits of the Income Tax accounts, we examine whether Tax task-specific knowledge (TSK) affects the audit quality of the Income Tax accounts and find that Tax TSK increases the audit quality of the Income Tax accounts. We also find evidence of an improved response to misstatements among audit offices with Tax TSK, demonstrated by a decreased likelihood of future Tax misstatements following the disclosure of a Tax restatement. Finally, we observe the effect of Tax TSK among audit offices with lower levels of auditor-provided Tax services (APTS). This result suggests that audit offices without the benefit of knowledge spillover from APTS rely more on the Tax TSK.
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does task specific knowledge improve audit quality evidence from audits of Income Tax accounts
Social Science Research Network, 2017Co-Authors: Nathan C. Goldman, M Harris, Thomas C. OmerAbstract:Two forms of expertise can influence audit quality: industry and task-specific expertise. If Tax knowledge is task-specific rather than industry-specific, audit offices with increased exposure to complex Tax issues will develop this task-specific expertise. Using outcomes related to Income Tax account audits, we examine whether Tax task-specific knowledge (TSK) accumulates at the audit office level and affects the Income Tax accounts’ audit quality. We find that Tax TSK increases the Income Tax accounts' audit quality, suggesting individual Tax TSK accumulates at the office level. Additionally, semi-structured interviews of partners/senior managers at a Big 4 audit firms validate group processing theory as an explanation for TSK developing at the office level. We contribute to and extend the literature examining audit office expertise by providing evidence that exposure to complex Tax issues develop TSK. That TSK accumulates at the office level and enhances audit quality. These findings provide archival and qualitative evidence of how TSK develops at the office level.
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do Income Tax related deficiencies in publicly disclosed pcaob part ii reports influence audit client financial reporting of Income Tax accounts
The Accounting Review, 2016Co-Authors: Katharine D Drake, Nathan C. Goldman, Stephen J LuschAbstract:ABSTRACT: Deloitte's 2007 PCAOB Part II report identifies, among other issues, concerns related to the audit firm's quality controls with respect to auditing Income Tax accounts. We investigate whether Deloitte's actions to remediate the PCAOB's concerns are associated with changes to their clients' financial reporting for Income Taxes. We find that Deloitte's clients increased the reported valuation allowance on deferred Tax assets and increased the reported reserve for uncertain Tax benefits (UTBs) in response to increased auditor scrutiny over Income Tax accounts. Additionally, we find that in subsequent periods, Deloitte's clients report valuation allowances and UTB balances that are not significantly different than other annually inspected auditors, consistent with Deloitte changing the quality controls related to audits of Income Tax accounts after the failed remediation of the 2007 Part II report.
