1. Macroeconomics Chapter 131 Taxes C h a p t e r 1 3

2. Macroeconomics Chapter 132 Taxes in the United States

3. Macroeconomics Chapter 133 Taxes in China

4. Macroeconomics Chapter 134 Types of Taxes

5. Macroeconomics Chapter 135 Types of Taxes

6. Macroeconomics Chapter 136 Types of Taxes 项 目 国家财政收 入 2007 中央地方 总计 51321.7827749.1623572.62 税收收入 45621.9726369.8519252.12 国内增值税 15470.2311602.613867.62 国内消费税 2206.83 进口货物增值 税、消费税 6153.41 出口货物退增 值税、消费 税 -5635.00 营业税 6582.17202.666379.51 企业所得税 8779.255646.973132.28 个人所得税 3185.581911.801273.78 资源税 261.15 城市维护建设 税 1156.397.691148.70 房产税 575.46 印花税 2261.751945.15316.60 # 证券交易印花 税 2005.311945.1560.16 项 目 国家财政收 入 2007 中央地方 城镇土地使用 税 385.49 土地增值税 403.10 车船税 68.16 船舶吨税 18.20 车辆购置税 876.90 关税 1432.57 耕地占用税 185.04 契税 1206.25 烟叶税 47.80 其他税收收入 1.240.061.18 非税收入 5699.811379.314320.50 专项收入 1241.85153.691088.16 行政事业性收 费 1897.35353.661543.69 罚没收入 840.2628.25812.01 其他收入 1720.35843.71876.64

7. Macroeconomics Chapter 137 Types of Taxes  taxes fall on forms of income: individual income taxes, corporate profits taxes, and contributions for Social Security and Medicare.  taxes are based on expenditures: sales taxes, excise taxes, and customs duties.  Property taxes

8. Macroeconomics Chapter 138 Types of Taxes  The marginal tax rate is the additional tax paid on an additional dollar of income.  The average tax rate is the ratio of total taxes paid to total income. An important property of the U.S. federal individual income tax is that the marginal tax rate rises with income.

9. Macroeconomics Chapter 139 Types of Taxes

10. Macroeconomics Chapter 1310 Types of Taxes （工资、薪金所得适用）个人所得税税率表一 级数全月应纳税所得额税率（％） 1 不超过 500 元的 5 2 超过 500 元至 2000 元的部分 10 3 超过 2000 元至 5000 元的部分 15 4 超过 5000 元至 20000 元的部分 20 5 超过 20000 元至 40000 元的部分 25 6 超过 40000 元至 60000 元的部分 30 7 超过 60000 元至 80000 元的部分 35 8 超过 80000 元至 100000 元的部分 40 9 超过 100000 元的部分 45

11. Macroeconomics Chapter 1311 Types of Taxes

12. Macroeconomics Chapter 1312 Types of Taxes

13. Macroeconomics Chapter 1313 Taxes in the Model  Household Budget Constraint C + (1/P) · B+ K = (w/P) · Ls+ r · (B/P+K) + V − T

14. Macroeconomics Chapter 1314 Taxes in the Model  Let τ w be the marginal tax rate on labor income. a higher τ w will generate more tax revenue for the government unless the amount of labor income falls sharply.  Let τ w be same for all levels of income same for all time  --- no intertemporal substitution.

15. Macroeconomics Chapter 1315 Taxes in the Model  Income effects from a change inτ w V − T = −G Therefore, if government purchases, G, are unchanged ， real transfers net of real taxes, V − T, must also be unchanged. For given G, we do not get any changes in household real income through the term V − T. In other words, if G is fixed, there are no income effects from a change inτ w.

16. Macroeconomics Chapter 1316 Taxes in the Model  after-tax real wage rate = (1−τ w ) · (w/P)  If the marginal tax rate, τ w, rises, for a given w/P, (1−τ w ) · (w/P) falls. We predict that the household would reduce the quantity of labor supplied, take more leisure time, and consume less. --- intratemporal substitution

17. Macroeconomics Chapter 1317 Taxes in the Model

18. Macroeconomics Chapter 1318 Taxes in the Model  For a given pretax real wage rate, w/P, a higher τ w implies a lower after-tax real wage rate, (1 − τ w ) · (w/P).  A rise in τ w shifts the labor supply curve leftward from the blue one labeled L s to the green one labeled (L s ).  This decrease in labor supply reflects the substitution effect from the higher labor- income tax rate, τ w

19. Macroeconomics Chapter 1319 Taxes in the Model  a higher marginal tax rate on labor income, τ w, lowers the quantity of labor input, L.  (1 − τ w ) · (w/P) also decreases.  This effect will spill over to the market for capital services because the reduction in L tends to reduce the marginal product of capital services, MPK.

20. Macroeconomics Chapter 1320 Taxes in the Model

21. Macroeconomics Chapter 1321 Taxes in the Model  Y= A · F(κ K, L) we found that a rise in the labor- income tax rate, τ w, reduced the quantities of labor, L, and capital services, κK. A higher marginal tax rate on labor income, τ w, leads to a reduction in overall market activity, as gauged by real GDP, Y.

22. Macroeconomics Chapter 1322 Taxes in the Model  A Tax on Asset Income C+ (1/P) · B+ K = ( w/P) · L s + r · ( B/P +K) + V − T r = ( R/ P) · κ − δ(κ) Let τr be the marginal tax rate on asset income.

23. Macroeconomics Chapter 1323 Taxes in the Model  A Tax on Asset Income (1−τ r ) · r = (1−τ r ) · [(R/P) · κ−δ(κ) ]

24. Macroeconomics Chapter 1324 Taxes in the Model  For the choice between C 1 and C 2 is the after-tax real interest rate, (1−τ r ) · r. If τ r rises, for given r, (1−τ r ) · r declines.  Households have less incentive to defer consumption, and it reacts by increasing C 1 compared to C 2. For given real income in year 1, an increase in τ r motivates the household to consume more and save less in year 1.

25. Macroeconomics Chapter 1325 Taxes in the Model  ( κK ) d : does not change.  ( κK ) s : choose κ to maximize (1−τ r ) · r.  Hence, no change in the rental market.  No change in labor and GDP.  In the long run, the decrease in I leads to a lower GDP.

26. Macroeconomics Chapter 1326 Taxes in the Model  A Tax on consumption C+ ( 1/P) · B+ K = ( w/P) · L s + r · ( B/P +K) + V − T Suppose now that real taxes, T, depend on a household ’ s consumption Let τ c be the marginal tax rate on asset income.

27. Macroeconomics Chapter 1327 Taxes in the Model  A Tax on consumption T = τ c C C+ ( 1/P) · B+ K = (w/P) · L s + r · (B/P+K) + V −τ c C The net real wage: (w/P) / (1+τ c ) The net real interest rate: r / (1+τ c )

28. Macroeconomics Chapter 1328 An Increase in Government Purchases Financed by a Labor Income Tax  Effects from a permanent increase in government purchases, G. assumed, that the increase in G was financed by lump- sum taxes. Our finding was that an increase in G by one unit left real GDP, Y, unchanged and reduced consumption, C, by about one unit. Gross investment, I, was unchanged. Also unchanged were the real wage rate, w/P, the real rental price, R/P, and the real interest rate, r.

29. Macroeconomics Chapter 1329 An Increase in Government Purchases Financed by a Labor Income Tax  Now combine the permanent increase in G and the higher marginal income tax rateτ w  The income effect increases the supply of labor.

30. Macroeconomics Chapter 1330 An Increase in Government Purchases Financed by a Labor Income Tax  We found in this chapter that the substitution effect from a higher marginal tax rate, τ w, on labor income reduces the quantity of labor supplied.  The net effect on the supply of labor is not so large.

31. Macroeconomics Chapter 1331 An Increase in Government Purchases Financed by a Labor Income Tax  Empirically, the overall effect from permanently increased government purchases, G, on the quantity of labor supplied, L s, seems to be small.

32. Macroeconomics Chapter 1332 An Increase in Government Purchases Financed by a Labor Income Tax

33. Macroeconomics Chapter 1333 Transfer Payments  Suppose that the government increases real transfers, V, and finances these expenditures with increased real taxes, T, collected by a tax on labor income.  In this case, marginal income tax rates, τ w, rise for two reasons. First, the rise in T goes along with a higher τ w for households that pay individual income taxes. Second, for households that are receiving transfers — such as poor welfare recipients — the expansion of the transfer program raises the implicit marginal income tax rate, τ w, because of the income testing for benefits.  We therefore predict even stronger effects In particular, labor input, L, capital services, κK, and real GDP, Y, tend to decline.