Transcript Document

Chapter13
Taxes
Macroeconomics Chapter 13
1
Taxes in the United States
Macroeconomics Chapter 13
2
Taxes in China
0.35
0.3
0.25
0.2
0.15
0.1
0.05
19
78
19
85
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
0
财政收入
中央
Macroeconomics Chapter 13
地方
3
Types of Taxes
Macroeconomics Chapter 13
4
Types of Taxes
Macroeconomics Chapter 13
5
项
目
总计
国家财政收
入
2007
中央
地方
Types of Taxes
51321.78
27749.16
23572.62
45621.97
26369.85
19252.12
国内增值税
15470.23
11602.61
3867.62
国内消费税
2206.83
2206.83
进口货物增值
税、消费税
6153.41
6153.41
出口货物退增
值税、消费
税
-5635.00
税收收入
项
目
土地增值税
403.10
403.10
车船税
68.16
68.16
船舶吨税
18.20
18.20
876.90
876.90
1432.57
1432.57
关税
6582.17
202.66
6379.51
契税
企业所得税
8779.25
5646.97
3132.28
烟叶税
个人所得税
3185.58
1911.80
1273.78
其他税收收入
城市维护建设
税
1156.39
房产税
575.46
印花税
2261.75
#证券交易印
花税
2005.31
261.15
7.69
1148.70
575.46
1945.15
1945.15
316.60
60.16
地方
385.49
耕地占用税
261.15
中央
385.49
营业税
资源税
2007
城镇土地使用
税
车辆购置税
-5635.00
国家财政收
入
185.04
185.04
1206.25
1206.25
47.80
47.80
1.24
0.06
1.18
非税收入
5699.81
1379.31
4320.50
专项收入
1241.85
153.69
1088.16
行政事业性收
费
1897.35
353.66
1543.69
罚没收入
840.26
28.25
812.01
其他收入
1720.35
843.71
876.64
Macroeconomics Chapter 13
6
Types of Taxes



taxes fall on forms of income:
individual income taxes, corporate profits
taxes, and contributions for Social Security
and Medicare.
taxes are based on expenditures:
sales taxes, excise taxes, and customs
duties.
Property taxes
Macroeconomics Chapter 13
7
Types of Taxes


The marginal tax rate is the additional tax
paid on an additional dollar of income.
The average tax rate is the ratio of total
taxes paid to total income.

An important property of the U.S. federal
individual income tax is that the
marginal tax rate rises with income.
Macroeconomics Chapter 13
8
Types of Taxes
Macroeconomics Chapter 13
9
Types of Taxes
（工资、薪金所得适用）
级数
个人所得税税率表一
全月应纳税所得额
税率（％）
1
不超过500元的
5
2
超过500元至2000元的部分
10
3
超过2000元至5000元的部分
15
4
超过5000元至20000元的部分
20
5
超过20000元至40000元的部分
25
6
超过40000元至60000元的部分
30
7
超过60000元至80000元的部分
35
8
超过80000元至100000元的部分
40
9
超过100000元的部分
45
Macroeconomics Chapter 13
10
Types of Taxes
Macroeconomics Chapter 13
11
Types of Taxes
Macroeconomics Chapter 13
12
Taxes in the Model

Household Budget Constraint
C + (1/P)·B+ K
= (w/P)·Ls+ r·(B/P+K) + V − T
Macroeconomics Chapter 13
13
Taxes in the Model

Let τw be the marginal tax rate on
labor income.


a higher τw will generate more tax
revenue for the government unless the
amount of labor income falls sharply.
Let τw be


same for all levels of income
same for all time

--- no intertemporal substitution.
Macroeconomics Chapter 13
14
Taxes in the Model

Income effects from a change inτw
V − T = −G
 Therefore, if government purchases, G,
are unchanged， real transfers net of
real taxes, V − T, must also be
unchanged. For given G, we do not get
any changes in household real income
through the term V − T.
 In other words, if G is fixed, there are no
income effects from a change inτw.
Macroeconomics Chapter 13
15
Taxes in the Model


after-tax real wage rate = (1−τw)·(w/P)
If the marginal tax rate, τw, rises, for a
given w/P, (1−τw)·(w/P) falls.

We predict that the household would
reduce the quantity of labor supplied,
take more leisure time, and consume less.
--- intratemporal substitution
Macroeconomics Chapter 13
16
Taxes in the Model
Macroeconomics Chapter 13
17
Taxes in the Model



For a given pretax real wage rate, w/P, a
higher τw implies a lower after-tax real
wage rate, (1 − τw) · (w/P) .
A rise in τw shifts the labor supply curve
leftward from the blue one labeled Ls to the
green one labeled (Ls ) .
This decrease in labor supply reflects the
substitution effect from the higher laborincome tax rate, τw
Macroeconomics Chapter 13
18
Taxes in the Model



a higher marginal tax rate on labor income,
τw, lowers the quantity of labor input, L.
(1 − τw) · (w/P) also decreases.
This effect will spill over to the market for
capital services because the reduction in L
tends to reduce the marginal product of
capital services, MPK.
Macroeconomics Chapter 13
19
Taxes in the Model
Macroeconomics Chapter 13
20
Taxes in the Model

Y= A· F(κ K, L)


we found that a rise in the laborincome tax rate, τw, reduced the
quantities of labor, L, and capital
services, κK.
A higher marginal tax rate on labor
income, τw, leads to a reduction in
overall market activity, as gauged by
real GDP, Y.
Macroeconomics Chapter 13
21
Taxes in the Model

A Tax on Asset Income

C+ (1/P)·B+ K
= ( w/P) ·Ls+ r · ( B/P +K) + V − T
r = ( R/ P) · κ − δ(κ)
Let τr be the marginal tax rate on asset
income.
Macroeconomics Chapter 13
22
Taxes in the Model

A Tax on Asset Income

(1−τr) · r = (1−τr)·[(R/P)·κ−δ(κ) ]
Macroeconomics Chapter 13
23
Taxes in the Model


For the choice between C1 and C2 is the
after-tax real interest rate, (1−τr)·r . If
τr rises, for given r, (1−τr)·r declines.
Households have less incentive to defer
consumption, and it reacts by increasing C1
compared to C2. For given real income in
year 1, an increase in τr motivates the
household to consume more and save less
in year 1.
Macroeconomics Chapter 13
24
Taxes in the Model

(κK )d : does not change.

(κK )s : choose

Hence, no change in the rental market.

No change in labor and GDP.

κ to maximize (1−τr)·r.
In the long run, the decrease in I leads to a
lower GDP.
Macroeconomics Chapter 13
25
Taxes in the Model

A Tax on consumption



C+ ( 1/P)·B+ K
= ( w/P) ·Ls+ r · ( B/P +K) + V − T
Suppose now that real taxes, T, depend
on a household’s consumption
Let τc be the marginal tax rate on asset
income.
Macroeconomics Chapter 13
26
Taxes in the Model

A Tax on consumption

T = τc C
C+ ( 1/P)·B+ K
= (w/P) ·Ls+ r · (B/P+K) + V −τc C

The net real wage: (w/P) / (1+τc)

The net real interest rate: r / (1+τc)

Macroeconomics Chapter 13
27
An Increase in Government Purchases
Financed by a Labor Income Tax

Effects from a permanent increase in
government purchases, G. assumed, that
the increase in G was financed by lumpsum taxes.



Our finding was that an increase in G by one
unit left real GDP, Y, unchanged and reduced
consumption, C, by about one unit.
Gross investment, I, was unchanged.
Also unchanged were the real wage rate, w/P,
the real rental price, R/P, and the real interest
rate, r.
Macroeconomics Chapter 13
28
An Increase in Government Purchases
Financed by a Labor Income Tax

Now combine



the permanent increase in G
and the higher marginal income tax
rateτw
The income effect increases the supply of
labor.
Macroeconomics Chapter 13
29
An Increase in Government Purchases
Financed by a Labor Income Tax


We found in this chapter that the
substitution effect from a higher marginal
tax rate, τw, on labor income reduces the
quantity of labor supplied.
The net effect on the supply of labor is not
so large.
Macroeconomics Chapter 13
30
An Increase in Government Purchases
Financed by a Labor Income Tax

Empirically, the overall effect from
permanently increased government
purchases, G, on the quantity of
labor supplied, Ls , seems to be
small.
Macroeconomics Chapter 13
31
An Increase in Government Purchases
Financed by a Labor Income Tax
Macroeconomics Chapter 13
32
Transfer Payments


Suppose that the government increases real
transfers, V, and finances these expenditures with
increased real taxes, T, collected by a tax on
labor income.
In this case, marginal income tax rates, τw, rise
for two reasons.



First, the rise in T goes along with a higher τw for
households that pay individual income taxes.
Second, for households that are receiving
transfers—such as poor welfare recipients—the
expansion of the transfer program raises the implicit
marginal income tax rate, τw, because of the income
testing for benefits.
We therefore predict even stronger effects In
particular, labor input, L, capital services, κK, and
real GDP, Y, tend to decline.
Macroeconomics Chapter 13
33