Tax revenue
# Tax revenue

Part of a series on :

Taxation :

An aspect of fiscal policy :

Policies

Government revenue

Property tax equalization

Tax revenue

Non-tax revenue

Tax law

Tax bracket

Flat tax

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Credit

Deduction

Tax shift

Tax cut

Tax holiday

Tax amnesty

Tax advantage

Tax incentive

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Tax harmonization

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Double taxation

Representation

Unions

Medical savings account :

Economics

General Theory

Price effect

Excess burden

Tax incidence

Laffer curve

Optimal tax

Theories

Optimal capital income taxation

Distribution of Tax

Tax rate

Flat

Progressive

Regressive

Proportional :

Collection

Revenue service

Revenue stamp

Tax assessment

Taxable income

Tax lien

Tax refund

Tax shield

Tax residence

Tax preparation

Tax investigation

Tax shelter

Tax collector

Private tax collection

Tax farming :

Noncompliance

General

Tax avoidance

Repatriation tax avoidance

Tax evasion

Tax resistance

Tax shelter

Smuggling

Black market

Unreported employment

Corporate

Tax inversion

Transfer mispricing

Base erosion and profit shifting (BEPS)

Double Irish

Dutch Sandwich

Single Malt

CAIA/Green Jersey

Locations

Tax havens

Corporate havens

Offshore financial centres (OFCs)

Offshore magic circle

Conduit and sink OFCs

Financial centres

Financial Secrecy Index

Major examples

Ireland as a tax haven

Ireland v Commission

Leprechaun economics

Liechtenstein tax affair

Luxembourg Leaks

Offshore Leaks

Paradise Papers

Panama Papers

Swiss Leaks

United States as a tax haven

Panama as a tax haven :

Types

Direct

Indirect

Per unit

Ad valorem

Aviation

Airport improvement

Landing

Solidarity

Capital gains

Expatriation

Consumption

Departure

Hotel

Sales

Stamp

Television

Tourist

Value-added

Dividend

Environmental tax

Carbon

Landfill

Natural resources consumption

Severance

Steering

Stumpage

Excise

Alcohol

Cigarette

Fat

Meat

Sin

Sugary drink

Tobacco

General

Georgist

Gift

Gross receipts

Hypothecated

Income

Inheritance (estate)

Land value

Luxury

Payroll

Pigouvian

Property

Single

Surtax

Turnover

Use

User charge/fee

Congestion

Fuel

Road/GNSS

Toll

Vehicle miles traveled

Corporate profit

Excess profits

Windfall

Negative (income)

Wealth :

International

Financial transaction tax

Currency transaction tax

European Union Common Consolidated Corporate Tax Base (CCCTB)

Global minimum corporate tax rate

Tobin tax

Spahn tax

Tax equalization

Tax treaty

Permanent establishment

Transfer pricing

European Union FTT

Foreign revenue rule :

Trade

Custom

Duty

Tariff

Import

Export

Tariff war

Free trade

Free-trade zone

Trade agreement

ATA Carnet :

Research

Academic

Mihir A. Desai

Dhammika Dharmapala

James R. Hines Jr.

Ronen Palan

Joel Slemrod

Gabriel Zucman

Advocacy groups

Institute on Taxation and Economic Policy (ITEP)

Oxfam (UK)

Tax Foundation (US)

Tax Justice Network (TJN)

Tax Policy Center (US) :

Religious

Church tax

Eight per thousand

Teind

Tithe

Fiscus Judaicus

Leibzoll

Temple tax

Tolerance tax

Jizya

Kharaj

Khums

Nisab

Zakat :

By country

All Countries

List of countries by tax rates

Tax revenue to GDP ratio

Tax rates in Europe

Individual Countries

Albania

Algeria

Argentina

Armenia

Australia

Azerbaijan

Bangladesh

Bhutan

Brazil

Bulgaria

BVI

Canada

China

Colombia

Croatia

Denmark

Finland

France

Germany

Greece

Hong Kong

Iceland

India

Indonesia

Iran

Ireland

Israel

Italy

Japan

Kazakhstan

Lithuania

Malta

Morocco

Namibia

Netherlands

New Zealand

Norway

Pakistan

Palestine

Peru

Philippines

Poland

Portugal

Russia

South Africa

Sri Lanka

Sweden

Switzerland

Taiwan

Tanzania

United Arab Emirates

United Kingdom

United States

Uruguay :

Business portal

 Money portal :

vte :

Tax revenue is the income that is collected by governments through taxation. Taxation is the primary source of government revenue. Revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources and/or foreign aid. An inefficient collection of taxes is greater in countries characterized by poverty, a large agricultural sector and large amounts of foreign aid.

Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be a third party licensed to collect tax which they themselves will use. For example, in the UK, the Driver and Vehicle Licensing Agency (DVLA) collects vehicle excise duty, which is then passed onto HM Treasury.

Tax revenues on purchases come in two forms: "tax" itself is a percentage of the price added to the purchase (such as sales tax in U.S. states, or VAT in the UK), while "duties" are a fixed amount added to the purchase price (e.g., for cigarettes). In order to calculate the total tax raised from these sales, we must work out the effective tax rate multiplied by the quantity supplied.

## Taxation and state capacity

Taxation was a key task in any country as it advances state capacity and accountability. Charles Tilly identifies taxation as a form of extraction that allows the state to execute its primary functions: public policies (education, infrastructures, health care), state making, and protection. Taxation became indispensable in western Europe, when countries needed to fund wars in order to survive. This European model was later exported all around the world. Today, the level of taxation is used as an indicator of state capacity. Developed countries raise more taxes and therefore are able to provide better services. At the same time, the high taxation forces them to become accountable with their citizens, which strengthens the democracy.

## Changes in taxation level

The effect of a change in taxation level on total tax revenue depends on the good being investigated, and in particular on its price elasticity of demand. Where goods have a low elasticity of demand (they are price inelastic), an increase in tax or duty will lead to a small decrease in demand—not enough to offset the higher tax raised from each unit. Overall tax revenue will therefore rise. Conversely, for price-elastic goods, an increase in tax rate or duty would lead to a fall in tax revenue.

### Laffer curve

The Laffer curve theorises that, even for price-inelastic goods (such as addictive necessary items), there will be a tax revenue maximising point, beyond which total tax revenue will fall as taxes increase. This may be due to:

* A cost limit on what can actually be afforded
* The existence of expensive substitutes (which become less expensive)
* An increase in tax evasion (e.g., through the black market)
* The shrinking of business caused by increased taxes

The Laffer curve, however, is not universally accepted; Paul Krugman referred to it as "junk economics".

## Revenue administration

### Public sector

A limiting factor in determining the government budget is the capacity to tax. Per capita income (PCI) is the most often used measure of relative fiscal capacity. But this measure fails to base tax capacity computation on other important tax bases like the sales and property tax and corporate income taxes. A representative tax system should assess the level of personal income, the value of retail sales and the value of property to compute fiscal capacity. To do so the average tax rate for each base is computed by dividing the total revenue derived by the total value of the base. Thus, as an example, income taxes collected would be divided by total income to yield a rate of taxation.

The averages of each tax base can be used in comparison to other states or communities, that is, the average of other states or communities, to determine whether or not a government compares favorably regionally or nationally. A state or community's standing on these various bases may affect its ability to attract new industry. The resulting rates, high or low in comparison, can become targets for change. The mission of revenue administration is to provide prudent and innovative revenue, investment and risk management and to regulate the use of government capital.

There are four core responsibilities for the revenue administrator:

* Manage and invest financial assets prudently
* Administer tax and revenue programs fairly and efficiently
* Manage risk associated with loss of public assets
* Regulate capital expenditure

New real estate development may not only enhance the economic base of a state or community, and it may also expand the tax base. It is not always the case, however, that new developments, especially if not properly planned, can in the aggregate, have a negative impact on the tax base. Economic development traditionally focuses on such things as job generation, the provision of affordable housing, and the creation of retail centers. Tax base expansion focuses primarily on maintaining and enhancing real estate values within the municipality. Municipalities tend to pursue economic development with religious fervor and often do not think strategically about the overall real estate impacts of their economic development initiatives. Yet the existing tax base in almost every municipality throughout the United States is an important source of revenue for funding municipal and school expenditures.

For public sector officials it is important to recognize the potential for a conflict between these two distinct, yet overlapping areas of public policy, and to establish procedures to achieve the proper balance in this regard. For real estate investors it is important to recognize when public policy is not fully cognizant of the impact of its actions on the real estate market, because of the potential negative impact on property values.

In summary, the concept of tax base management is really one of asset management and is particularly important in U.S. states where municipalities derive much of their revenue from their real estate assessments. City officials in Concord, New Hampshire found that a five percent overall increase in the assessed value of existing property would have the same impact on the tax rate as the addition of 2,000,000 square feet (190,000 $m^2)$ of new industrial property or 1,000,000 square feet (93,000 $m^2)$ of new office/R&D development, both of which are likely to take fifteen or more years to realize.

In addition to being responsible for managing the tax base, a community should also be responsible for helping to ensure economic prosperity for its citizens. These two goals can conflict unless a long-term view is taken regarding public policy actions, and unless the impact of alternate development actions and programs and priorities are not carefully evaluated. Good tax base management may lead to even better economic development, because investors and businesses will want to be in a community. Instead of offering incentives to attract business, they may be willing to pay to come to a community because it's a good place to live, work, shop and play.

