Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Europe > Switzerland

You are looking at 1 - 4 of 4 items for :

  • Type: Journal Issue x
  • Spendings tax x
Clear All Modify Search
Cover IMF Working Papers
Corporate Tax Reform: From Income to Cash Flow Taxes
Benjamin Carton
,
Emilio Fernández Corugedo
, and
Mr. Benjamin L Hunt
This paper uses a multi-region, forward-looking, DSGE model to estimate the macroeconomic impact of a tax reform that replaces a corporate income tax (CIT) with a destination-based cash-flow tax (DBCFT). Two key channels are at play. The first channel is the shift from an income tax to a cash-flow tax. This channel induces the corporate sector to invest more, boosting long-run potential output, GDP and consumption, but crowding out consumption in the short run as households save to build up the capital stock. The second channel is the shift from a taxable base that comprises domestic and foreign revenues, to one where only domestic revenues enter. This leads to an appreciation of the currency to offset the competitiveness boost afforded by the tax and maintain domestic investment-saving equilibrium. The paper demonstrates that spillover effects from the tax reform are positive in the long run as other countries’ exports benefit from additional investment in the country undertaking the reform and other countries’ domestic demand benefits from improved terms of trade. The paper also shows that there are substantial benefits when all countries undertake the reform. Finally, the paper demonstrates that in the presence of financial frictions, corporate debt declines under the tax reform as firms are no longer able to deduct interest expenses from their profits. In this case, the tax shifting results in an increase in the corporate risk premia, a near-term decline in output, and a smaller long-run increase in GDP.
Keywords:
WP; capital stock; exchange rate; export price; income tax; tax policy; business taxation; corporate leverage; dynamic stochastic general equilibrium models; macroeconomic interdependence; CIT reform; cash flow; cost of capital; open economy; DBCFT result; distortionary tax; tax reform experiment; return to capital; rate of return; shadow price; Corporate income tax; Corporate taxes; Financial frictions; Value-added tax; Cash-flow tax; Global
Cover IMF Staff Country Reports
Japan: Selected Issues
International Monetary Fund
This Selected Issues paper examines the factors behind the recent surge in capital flows in Japan. The paper presents econometric evidence on the influence of these capital flows on the medium-term dynamics of the yen. It finds that in the case of the yen–dollar rate, nontrade factors affecting capital flows are likely to delay the adjustment of the yen-dollar rate to its long-term equilibrium value. The paper also draws on recent international experiences and trends to identify and review some of the key tax issues and options for meeting these challenges.
Keywords:
ISCR; CR; yen; bank; Japan; exchange rate; City bank; yen-dollar rate; regional bank; yen-U.S. dollar adjustment; Trust bank; yen-dollar exchange rate; Commercial banks; Information technology in revenue administration; Exchange rates; Corporate income tax; Productivity; Global; Asia and Pacific; North America; Central and Eastern Europe
Cover IMF Staff Country Reports
Switzerland: Selected Issues and Statistical Appendix
International Monetary Fund
This Selected Issues paper and Statistical Appendix compares two alternative time series approaches to analyzing Switzerland’s recent business cycle experience: first, the traditional “smooth-trend-plus-cycle approach,” which envisages observed output growth as fluctuating around a relatively smooth potential output growth path; and, second, the more recently developed “regime change approach,” which views business cycles as shifts between “high-growth” states (expansions) and “slow-growth” states (recessions) of the economy. The paper also examines Switzerland’s monetary policy framework, and describes the challenges to the Swiss tax system.
Keywords:
ISCR; CR; tax burden; income tax; output growth; tax system; direct tax; monetary base; growth data; wealth tax; Income and capital gains taxes; Inflation; Personal income tax; Income tax systems; Europe; Global
Cover The Impact of the European Community's internal Market on the EFTA
The Impact of the European Community's internal Market on the EFTA
Occa Paper No.74
International Monetary Fund

Abstract

This paper provides an overview of the likely impact of the creation of the European Community (EC) internal market on the European Free Trade Association (EFTA) members. The focus is on the four freedoms and the institutional and legal changes required for increased economic cooperation between the EC and EFTA. Although not formally part of the negotiations, certain tax issues are also raised. The paper is in ten parts and includes a summary and glossary. The paper also discusses the institutional and legal changes that may prove necessary for greater EC-EFTA cooperation and the implications of the internal market for trade, production, and resource allocation in the EFTA countries. It examines issues related to trade in goods-mainly industrial goods-and transport services and considers issues of labor mobility and trade in financial services. Changes would also appear desirable in the areas of industrial and intellectual property rights-notably counterfeiting, trademarks, copyrights, and patents.

Keywords:
OP; EFTA country; country; EFTA member; EC country; firm; EC-EFTA cooperation; EC-EFTA relation; Transportation; Monetary unions; Value-added tax; Exchange rates; Western Europe; Europe; Southern Europe; Global