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• Corporate tax - a new paradigm is needed! -II. A new global value-added tax is needed instead of a corporate tax

  31-47

  László Török

  Views:

  160

  Abstract: The corporate tax system is easy to manipulate in modern economies, with high explicit and implicit costs of maintaining it. Attempts to reform it have been unsuccessful, with aggressive tax planning and tax evasion gaining ground at the international level. The source of constant conflicts between national tax administrations and companies is also the corporate tax base and tax accounting. Therefore, based on a new paradigm, I have developed a new, globally introduce, corporate value-added tax on corporate adjusted sales. Revenues from this tax would replace general government revenues lost due to the abolition of corporate tax. Based on the GDP of the member states of the European Union, I calculated the rate of the new tax for all member states. In the study, I present in detail, the mechanism of operation of the new tax, then describe the advantages of the introduction of the new tax compared to the corporate tax. Finally, I will thoroughly present how the taxation of dividends from company owners/shareholders would change if the new tax I planned was introduced and operated. This new type of taxation of dividends would, in my view, contribute more fairly to the burden-sharing.

  Journal of Economic Literature (JEL) codes: C 53, E 62, H 24, K 34

• Corporate tax - a new paradigm is needed - I.: Income tax versus value-added tax

  26-47

  Laszlo Torok

  Views:

  468

  Since the existence of the corporate tax institution, it has been a difficult task to determine the exact corporate tax base. As long as states are as large as possible, taxpayers, on the other hand, are interested in the smallest possible tax base. National and supranational rules for determining the tax base are changing with unrealistic frequency. It is almost impossible to enforce them, so conflicts between countries and between companies and tax administrations over corporate tax payable seem to be perpetuating. With the rise of trans- and multinational corporations, aggressive corporate tax planning and covert tax avoidance have also emerged. National governments are trying to prevent this with bilateral and multilateral treaties. Still, the verdicts of the recently revealed multi-billion euro/dollar corporate tax cases prove that they do not have a deterrent effect, meaning that the measures taken so far are far from sufficient to prevent them. In my research hypothesis, I argue that the corporate tax system's current form is unsustainable at both national and global levels due to its intricate design and manipulability and its high macro- and micro-level implicit costs. I will then propose a new value-added tax and tax rate to compensate for the loss of government revenue due to the abolition of corporate tax in an equivalent and essentially clear way. After that, I tested the proposed new type of tax based on the European Union countries' value-added data. Finally, I present the new global tax's territorial principle to replace corporate tax and its contribution to national public burden-bearing.

  Journal of Economic Literature (JEL) codes: C53, E62, H24, K34

• Így adósodtunk el! Mihályi Péter: A magyar gazdaság útja az adósságválságba 1945–2013. Corvina Kiadó, Budapest, 2013, 207 oldal, 2690 Ft

  119-123

  Laszlo Torok

  Views:

  148

• The possibilities and impossibilities of Hungarian public debt

  26-42

  Laszlo Torok

  Views:

  374

  The topic of the present study is the hypothetical, ex ante nature examination of Hungary’s gross consolidated public debt. The study defines the most important concepts and correlations, the judgments on the different degrees of public debt, the development of the Hungarian public debt, its main stages and characteristics. The study then presents a macroeconomic framework, which can predict the future output values of the public debt commensurable to GDP, depending on the parameters of the main explanatory variables. The establishment of input values of the main macroeconomic aggregates, as endogenous variables, is based on the author’s extrapolation and other empirical studies. Applying these, the values of the future public debt rates can be forecasted. The present study intends to show that the explanatory (economic) variables currently have well established values, which, if inserted into the chosen macroeconomic forecasting framework, show that the Hungarian public debt compared to GDP can be reduced to the desired 50 percent level. As the result of ten scenarios a more or less pessimistic, but in the case of one scenario, an optimistic, picture emerged concerning the future state of gross public debt.

  Journal of Economic Literature (JEL) classifications: C53, H68