Draft 28.VII – do not quote
Draft 28.VII – Microsoft translation of:
Macro-Heterodox Bird-eye Note on the evolutionary puzzle of zero-profit tax
In theory, in conditions of risk (especially in moral-hazards) the so-called 0-base 0-profit tax is almost certainly sub-optimal in the natinal complex social market environment in the long-term context and considering fair economic inequality – although possibly Pareto efficent in the short term e.g. on simple efficiency- inequity plane – without of any question* already a long time ago: thus, the implemented o-profits tax, in the context of national economy is in theory are quite certainly not theory based policy designs but must be politically motivated policy mechanisms.
The national losses and risks (real and moral) of such mechanisms as compared to the optimal and the risks to national socio-economic sustainability of the domestic stability must take into account both direct (e.g., a decrease in receipts of the State budget to resident legal persons/corporations, etc.) and indirect (e.g., reduction in receipts will reduce the establishment of the new high-tech jobs by the Government, and therefore causes a further exodus of qualified labor force, and thus the direct revenue losses of the natural persons and the human capital, the direct losses from their homeland, and thus also to the decline in the economic potential of the national income, and indirectly through the losses, etc.)-losses and the long term and, cumulatively, which requires the losses of the end of the period of retrospective “discounting” (thus, the estimated volume of the losses time to grow, such as the amount of the loss of the x in t to the year t + n discounted is as x [(1 + y) level (n)] where y is yield rate), etc.
In particular a dangerous cocktail is a profit tax to zero with the relatively high entrepreneur labor taxes because it encourages the profits/savings from domestic economy to machinate anomaly out of the home country together with the resulting increasing economic inequalities with impairments in such as the worsening of the social capital losses and the and the decreasing quality of national knowledge structure and so of the economic potential of the risks and thus the decrease in turbidity especially in human intellectual capital and the logic of quality impairment, etc.
We must not forget also the moral hazard in this context economic union, that the exceptionally low profit tax enforcement in a Member State creates injustice cases directly on-line, such as the reduction of taxation, and in the partner countries in the wake of gains to the unfair transfers predatory (2014 Nobelist term byTirole) agents involved in the multinational, etc.
Any credible 0-profit tax generated by the national (Let’s leave aside the simplification of foreign residents here) for domestic losses of a statistical calibration (compared to optimal) calls in any case a very large model and corresponding experts clusters* *: but as the birde-eye views can be very roughly and coarsely to assess both the ESA and the EP on the basis of the statistics that the Estonia, 2000-2015 for the damage caused ranges from somewhere around 20-30 billion (2014 was the Estonian NNI domestically used somewhere in the 15-16 billion, in the ring) with the contents of the current (1999 was 0-profit tax initialing the apparent administratively FM S. Kallas and in 2014 was the I guess the FM . Lauri who failed to inform the Commission** to which factual rules according to the profit tax we’ve got still corporations works: = =).
P.S.: here it must be stressed that the main political enforcement of the 0-profit tax was politically motivate foreign investors, was being buried in that (a) in General, foreign investors do not built up substantially to jobs in green-grass way (b) that the expanse of the moral hazard profit transfers gains more international expansion (c) that the 0-profit tax is unfair because of the moves, such as the inclusion of collective local contractors largely infrastructure expenditures (d) the most important of which is that it is not considered that the politically motivated decisions must remain within the limits of fairness, however, and not to deepen the international profit paradise cases etc.
*) See, e.g. especially the selected citations:
“The Case for a Progressive Tax: From Basic
Research to Policy Recommendations “
by Peter Diamond and Emmanuel Saez
CESIFO WORKING PAPER No. 3548
CATEGORY 1: PUBLIC FINANCE
This paper presents the case for progressivity of the tax based on recent results in the optimal tax theory.
We consider the optimal earnings progressivity of taxation and whether capital income should be taxed. We critically discuss the academic research on these topics and when and how the results can be used for policy recommendations. We argue that (a) the result from basic research is relevant for policy only if (a) it is based on economic instead of mechanisms that are empirically relevant and at the first order to the problem, (b) it is reasonably robust to changes in the modeling assumptions, (c) the policy prescription is implementable (i.e., is socially acceptable and is not bring complex). We obtain three policy recommendations from the basic research that satisfy these criteria reasonably well. First, the very high earners should be subject to a high and rising marginal tax rates is earnings. Second, the low income families should be encouraged to work with earnings subsidies, which should then be phased-out with high implicit marginal tax rates. Third, capital income should be taxed. We explain why the famous zero marginal tax rate the result for the top earner in the Mirrlees model and the zero capital income tax rate the results of Chamley-Judd and Stiglitz-Atkinson, the concept of the policy are not in our view.
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Chamley, Christophe. 2001 “Capital Income Taxation, Wealth Distribution and Borrowing Constraints,” The Journal of Public Economics 79, 55-69.
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* *) See, e.g,-
The EU Commission is disturbed by the Estonian arrogance to ignore:
„ … Previous requests for information were sent to Estonia and Poland by 2014. as part of the initiative of the Commission in December to extend the State aid investigation in respect of the national assessment notices, too, so that would be covered by all of the Member States.
The purpose of the investigation is to clarify allegations that maksuotsused may constitute State aid. The study will enable the Commission to obtain an overview of the assessment notices also practices in all Member States.
All of the EU Member States, with the exception of Poland and Estonian, have cooperated and provided all the requested information. On the basis of the information received, the Commission paulub the 15 Member State to provide a number of individual maksuotsused.
Application for assessment notices does not mean that their assessment notices to recipients of State aid is initiated the investigation of individual cases. … “
Indeed, the Rahandusteoreetiliselt is the Estonian law on profit tax of 0-interpreted as unfair competition in the capital markets in the Eu if the solkimine say that, given the State of both multinational and domestic corporations. In particular, the current situation will make it where we can get into such a State aid recipients also include under the control of Russia, and in talking to the Kremlin, and even in the Eu by sanktsioneeritavate corporations near here in the affiliated companies: see, e.g., http://pub.stat.ee/px-web.2001/Database/Majandus/03Ettevetete_majandusnaitajad/12Valismaised_tutarettevotted/12Valismaised_tutarettevotted.asp (be careful-that our statistics are hopelessly outdated in the sense that, on this basis, the Commission to answer).
It remains only as an excuse to add to that, I think we have more important things to do than those of a financial nature, such as correspondence with the Commission, be considered: such as the Minister of finance who like sloping towards Brussels, came out against such change who argue that the financial situation of our suhtviletsas (petislikult-väljasahkerdamine to the Finance of the country more anomalous eurotoetustest) is not the fault of not only mitigate the levy machinery was executed with incompetence – application for imaginaarne (especially in our elitaarsete the Bank’s analysts led by), etc – what the majandusküberneetiliselt does not exist, etc.
By the way the ridiculous poliitkorrektsusest and vastutustundetusest of our national economy, so far, the Commission erroneously uses the profit tax rate 21% of Estonian-and shows that the admission of the reduction by the Estonian policy (the regularity in the sense that how to reset otherwise, yet our Government allows to reduce the: = =).
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