ECONOMICS OF TAXATION 2400-ZEWW773

1. Basic notions: tax definition, tax classification, tax rules and functions, progression of taxation. Marginal and average taxation.
2. Tax effectiveness. Taxation of waste assets. Cost of taxes by A. Smith. External effects of taxation (excess burden of taxation).
3. Optimal taxation theories: theory of optimal commodity taxation (F. Ramsey, J. Mirrleess), theory of optimal income taxation (both linear and non-linear) (J. Mirrleess and former scientists). Marginal cost of funds proposition to evaluate tax burden and size of tax rates. Political economics view on tax effectiveness.
4. Taxes as incentives. Tax influence on: investment, economic growth and labor supply. Taxations and the structure of firms capital. Tax impact on risk taking by enterprises. Taxation and accumulation of human capital (overlapping generations models and life cycle models).
5. Tax avoidance and evasion. Allingham-Sandmo's model and its extensions. Empirical results of evasion research. Psychology of tax evasion. Prospect theory and its application to the tax evasion problem. Tax abolitions and world abolition's experience. Dynamic model of abolition and its implication.
6. Theory of tax administration. Rules of controlling tax agents, according to agency theory and game theory. Remuneration of tax inspectors. Corruption and extortion in tax administration: counteraction.
7. Justice and equity in taxation. Distribution of income before and after taxation. Calculation of wealth distribution effects caused by taxes. Prove of non-optimality of decreasing marginal utility as a determinant of progressive taxation. Pros and cons of tax progression. Sin taxes. Special issues of taxing the families and households. Estate and gift taxation.
8. International tax competition. Theories of tax competition: perfect competition proposed by Tiebout, harmful competition in Zodrow-Mieszkowski meaning, agglomeration theory in tax competition, model of fiscal solvency. Tax havens - their classification, utilization and features.

Szacunkowy nakład pracy studenta:
Typ aktywności K (kontaktowe) S (samodzielne)
zajęcia 30 0
sprawdzian 2 0
konsultacje 3 0
przygotowanie do sprawdzianu 0 40
Razem 35 40 = 75

REQUIRED:
F. Grądalski, „Wstęp do teorii opodatkowania”, SGH, Warszawa 2004
F. Grądalski, „System podatkowy w świetle teorii optymalnego opodatkowania”, SGH, Warszawa 2005
S. James, C. Nobes, “The Economics of Taxation”, Prentice Hall Europe, London 1997/98
J. Kudła, „Ekonomiczne problemy kosztów opodatkowania i nielegalnego unikania podatków”, Nasz Dziennik, Warszawa 2004
J. Kudła, „Ekonomia opodatkowania międzynarodowego”, Difin, Warszawa 2013
SUGGESTED:
W. G. Gale, J. R. Hines, J. Slemrod, Rethinking estate and gift taxation, Washington 2001
W. B. Hildreth, J. A. Richardson, "Handbook on taxation", Marcel Dekker, New York 1999
B. Salanie, "The Economics of taxation", MIT Press, London 2003