Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Comments by Kang Chen; and Summary of General Discussion on “Tax Policy Reform and Economic Performance in New Zealand” by Iris Claus

Comments by Kang Chen; and Summary of General Discussion on “Tax Policy Reform and Economic... Comments and Discussion Comments by Kang Chen; and Summary of General Discussion on “Tax Policy Reform and Economic Performance in New Zealand” by Iris Claus Kang Chen: Globalization and greater mobility of capital and skilled labor have forced sovereign countries to engage in tax competition. New Zealand is no exception. As mentioned in Iris Claus’s paper, the top personal marginal income tax rate in New Zealand was cut in recent years from 66 percent to 33 percent, and the company tax rate from 48 percent to 33 percent. In 2005, the Treasury also recommended to further reduce the company tax rate and personal income tax rate. Against this background, the paper sets out to use a stylized model to evaluate the possible effects of the further reduction of the personal income tax rate for higher income households. The model was built with careful speciªcations under a general equilibrium framework with a solid micro foundation based on optimizing the behavior of economic agents. However, its capacity to render support for tax policy debates in New Zealand would be considerably expanded if the following two comments were addressed. First, aggregation has to be handled more satisfactorily. The model uses representative http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asian Economic Papers MIT Press

Comments by Kang Chen; and Summary of General Discussion on “Tax Policy Reform and Economic Performance in New Zealand” by Iris Claus

Asian Economic Papers , Volume 6 (2) – May 1, 2007
Download PDF
3 pages

Loading next page...
 
/lp/mit-press/comments-by-kang-chen-and-summary-of-general-discussion-on-tax-policy-iIKmWAkwJk

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
MIT Press
Copyright
© 2007 The Earth Institute at Columbia University and the Massachusetts Institute of Technology
ISSN
1535-3516
eISSN
1536-0083
DOI
10.1162/asep.2007.6.2.109
Publisher site
See Article on Publisher Site

Abstract

Comments and Discussion Comments by Kang Chen; and Summary of General Discussion on “Tax Policy Reform and Economic Performance in New Zealand” by Iris Claus Kang Chen: Globalization and greater mobility of capital and skilled labor have forced sovereign countries to engage in tax competition. New Zealand is no exception. As mentioned in Iris Claus’s paper, the top personal marginal income tax rate in New Zealand was cut in recent years from 66 percent to 33 percent, and the company tax rate from 48 percent to 33 percent. In 2005, the Treasury also recommended to further reduce the company tax rate and personal income tax rate. Against this background, the paper sets out to use a stylized model to evaluate the possible effects of the further reduction of the personal income tax rate for higher income households. The model was built with careful speciªcations under a general equilibrium framework with a solid micro foundation based on optimizing the behavior of economic agents. However, its capacity to render support for tax policy debates in New Zealand would be considerably expanded if the following two comments were addressed. First, aggregation has to be handled more satisfactorily. The model uses representative

Journal

Asian Economic Papers – MIT Press

Published: May 1, 2007

There are no references for this article.