Revenue-neutral tax policies under price uncertainty: reply

In their comment on my 1990 article, Yeh, Suwanakul, and Mai extend my analysis-which focused attention exclusively on firm output-to allow for simultaneous endogeneity of price, aggregate output, and numbers of firms. They show that, with downward- sloping demand, industry output adjusts positively to revenue-neutral changes in the marginal rate of taxation. This result is significant for two reasons. First, we are more often interested in predictions about aggregate phenomena than we are in predictions about individual firms. Indeed, firm-level predictions are frequently irrefutable since firm data are often unavailable. Second, the authors derive their result under a set of conditions that appear to be more general than those invoked in my 1990 article. In particular, they circumvent the need to invoke specific assumptions about the nature of firms' aversions toward risk. I consider this a useful extension and I appreciate the careful scrutiny of my paper.

Asymmetric Information, Tax Evasion and Alternative Instruments of Government Revenue

Using a pure-exchange overlapping generations model, characterized with tax evasion and information asymmetry between the government (the social planner) and the financial intermediaries, we try and seek for the optimal tax and seigniorage plans, derived from the welfare maximizing objective of the social planner. We show that irrespective of whether the economy is characterized by tax evasion, or asymmetric information, a benevolent social planner, maximizing welfare and simultaneously financing the budget constraint, should optimally rely on explicit rather than implicit taxation.

Regulations 111 relating to the income tax under the Internal revenue code, with amendments to July 31, 1951, including T. D. 5841.

Mode of access: Internet.

Regulations 111 relating to the income tax under the Internal revenue code (applicable only to years beginning after December 31, 1941). Supplement.

At head of title: U.S. Treasury Dept. Bureau of Internal Revenue.

Summary on H.R. 9827 : An act to provide revenue by imposing a corporate excess profits tax.

Mode of access: Internet.

Treasury decisions nos. 5680 to 5815, issued after December 1, 1948 and before December 1, 1950 : amending Income tax regulations 111 issued under the Internal revenue code for taxable years beginning after December 31, 1941 : to be used in conjunction with preceding pamphlets and Supplement to Regulations 111.

Mode of access: Internet.

Revenue act of 1932--Supplement no.2. Rubber import tax. : Hearings before the Committee on Finance, United States Senate, seventy-second Congress, first session on H.R. 10236 an act to provide revenue, equalize taxation and for other purposes, May 9,10, and 11, 1932.

Mode of access: Internet.

Revenue act of 1932--Supplement no. 3. Income tax exemption of mutual insurance companies. : Hearings before the Committee on Finance, United States Senate, seventy-second Congress, first session on H.R. 10236 an act to provide revenue, equalize taxation and for other purposes, May 20, 1932.

Mode of access: Internet.

The breakdown of IRS tax enforcement regarding multinational corporations : revenue losses, excessive litigation, and unfair burdens for U.S. producers : hearing before the Committee on Governmental Affairs, United States Senate, One Hundred Third Congress, first session, March 25, 1993.

Shipping list no.: 93-0404-P.

Regulations 49 (revised) relating to the collection of tax on transportation and other facilities : title V, sections 500, 501, and 502 of the Revenue act of 1918 /

Includes index.

A letter ... to the U.S. revenue commission, opposing a tax on leaf tobacco (and recommending certain modifications of the present laws) ...

Signed: F.J. Bradford, Pres't. National tobacco convention.

The United States tax law as amended : an act to provide internal revenue to support the government and pay interest on the public debt.

Caption title.

Revenue loss from evasion under present operation of the Oregon truck-mile tax; final report,

Mode of access: Internet.

Tax havens and their use by United States taxpayers : an overview : a report to the Commissioner of Internal Revenue, the Assistant Attorney General (Tax Division) and the Assistant Secretary of the Treasury (Tax Policy) /

Mode of access: Internet.

Liquor tax administration act; taxes on wines : hearings before a subcommittee of the Committee on Finance, United States Senate, Seventy-fourth Congress, second session, on H.R. 191, relating to taxes on wines, and H.R. 9185, an act to insure the collection of the revenue on intoxicating liquor, to provide for the more efficient and economical administration and enforcement of the laws relating to the taxation of intoxicating liquor, and for other purposes.

William H. King, chairman of subcommittee.