Summary on Tax Cut Revolution
FOREIGN TRADE UNIVERSITY | HO CHI MINH CITY CAMPUS | |
TAXATION AND VIETNAM’S TAX SYSTEM
Instructor: Ms. Tran Nguyen Chat
SUMMARY OF TAX CUT REVOLUTION
In the chapter “Tax Cut Revolution” extracting from the book “Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It” (2008 edition) by Chris Edwards and Daniel J. Mitchell, the authors present how tax reforms have happened worldwide from Europe, North America to Asia and many other places. Lots of countries have cut taxes on many areas. Those that are mentioned in this chapter include taxes on Individual Income, Individual Capital Gains, Dividends, Wealth and Corporate Income, Corporate Capital Gains, Cross-Border Investment.
The authors compare US top tax rates to those of other countries or average top rates from such areas around the world as Africa, Asia and Latin America. And they try to introduce to the readers the improvement on tax revenues in places where tax cuts happen. Taxpayers with higher earnings and wealth have larger responses to tax changes. Take a look at taxes on Individual Income, Individual Capital Gains, Dividends (applicable to individual) and Wealth, those taxpayers who play an important part in every economy will always try to retain as much as their income and wealth as possible. Some countries such as Netherlands (zero capital gains tax rates) or Hong Kong (without estate tax) may be an ideal destination for billions of dollars of assets. As for corporate aspects, corporate headquarters tend to be set up in countries which removed corporate capital gains taxes or foreign investors may be more interested in countries without withholding taxes. Tax competition takes place all around and individuals, businesses and governments always have opportunities to benefit from it.
Tax competition has diversified effect on those taxes mentioned above. For example, income taxes are more responsive to tax competition than payroll taxes and consumption taxes. The
TAXATION AND VIETNAM’S TAX SYSTEM
Instructor: Ms. Tran Nguyen Chat
SUMMARY OF TAX CUT REVOLUTION
In the chapter “Tax Cut Revolution” extracting from the book “Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It” (2008 edition) by Chris Edwards and Daniel J. Mitchell, the authors present how tax reforms have happened worldwide from Europe, North America to Asia and many other places. Lots of countries have cut taxes on many areas. Those that are mentioned in this chapter include taxes on Individual Income, Individual Capital Gains, Dividends, Wealth and Corporate Income, Corporate Capital Gains, Cross-Border Investment.
The authors compare US top tax rates to those of other countries or average top rates from such areas around the world as Africa, Asia and Latin America. And they try to introduce to the readers the improvement on tax revenues in places where tax cuts happen. Taxpayers with higher earnings and wealth have larger responses to tax changes. Take a look at taxes on Individual Income, Individual Capital Gains, Dividends (applicable to individual) and Wealth, those taxpayers who play an important part in every economy will always try to retain as much as their income and wealth as possible. Some countries such as Netherlands (zero capital gains tax rates) or Hong Kong (without estate tax) may be an ideal destination for billions of dollars of assets. As for corporate aspects, corporate headquarters tend to be set up in countries which removed corporate capital gains taxes or foreign investors may be more interested in countries without withholding taxes. Tax competition takes place all around and individuals, businesses and governments always have opportunities to benefit from it.
Tax competition has diversified effect on those taxes mentioned above. For example, income taxes are more responsive to tax competition than payroll taxes and consumption taxes. The