The reason for extending the Value Added Tax (VAT) to the services sector in China is not sufficiently powerful. Just looking at the services sector, substituting the sales tax with a VAT gives rise to many difficulties in terms of system design and implementation, and the possible problems may...

The Chinese Premier Wen Jiabao hosted the State Council conference on the 1st March (2011), discussing and passing the Draft Individual Income Tax Law Amendment (‘Amendment'). The ‘Amendment' outlines changes that should be made as a part of the individual income tax reform suggesting that...

In this paper, the relationship between VAT base-expansion and intergovernmental financial relations is discussed from the perspective of the dual processes of industrialisation and urbanisation.First, this article theoretically analyses the VAT base-expansion and its real world implications and...

There is growing debate about whether consumer subsidies related to nutrition programs should be more flexible. Additional flexibility increases consumer welfare, but may hinder efforts towards achieving nutrition goals. We study how consumers would respond to subsidy designs with different...

An income tax cannot simultaneously maintain progressive marginal tax rates, an equal tax burden for all married couples with identical incomes ("couples equity"), and neutrality with respect to the tax burden of married vs. unmarried couples ("marriage neutrality"). Existing treatments of this...

The public economics, environmental, transportation and urban economics literature applies different labor supply approaches when studying economic or planning instruments. Some studies assume that working hours are endogenous while the number of workdays is given, whereas others model only...