Intergovernmental Distribution of VAT Revenue in Korea: Local Consumption Tax
0
조회
0
다운로드
3
인용
0
참고문헌
키워드
초록
In Korea, local consumption tax (LCT) has been established as a form of VAT revenueshare in 2010. LCT takes 5% of the national VAT revenue as the financial base anddistributes it to the local governments based on the regional sharing ratio of private finalconsumption expenditures (vertical equity) and weighting system to mitigate regionalfinancial disparity (horizontal equity). This paper first evaluates current LCT distributionin terms of both equities, suggesting that new distribution indices be needed to satisfy bothgoals. Before producing them, by reassessing the status and the goal of LCT, this papersuggests LCT as a new local transfer, not a local tax, should pursue another goal, thecorrespondence between production and incidence of regional value-added which is VATresource and ultimately LCT base, because its interregional migration is substantial inKorea. Based on such status and goals, new distribution indices are suggested and thefindings are evaluated.
Abstract
In Korea, local consumption tax (LCT) has been established as a form of VAT revenueshare in 2010. LCT takes 5% of the national VAT revenue as the financial base anddistributes it to the local governments based on the regional sharing ratio of private finalconsumption expenditures (vertical equity) and weighting system to mitigate regionalfinancial disparity (horizontal equity). This paper first evaluates current LCT distributionin terms of both equities, suggesting that new distribution indices be needed to satisfy bothgoals. Before producing them, by reassessing the status and the goal of LCT, this papersuggests LCT as a new local transfer, not a local tax, should pursue another goal, thecorrespondence between production and incidence of regional value-added which is VATresource and ultimately LCT base, because its interregional migration is substantial inKorea. Based on such status and goals, new distribution indices are suggested and thefindings are evaluated.
참고문헌 (33)
- Akerlof, George A, "The Economics of ‘Tagging’ as Applied to the Optimal Income Tax, Welfare Programs, and Manpower Planning", The American Economic Review, 68(1), pp.8~19 (1978)
- Bahl, Roy, "Subnational Taxes in Developing Countries: The Way Forward", Public Budgeting and Finance, 28(4), pp.1~25 (2008)
- Bird, Richard M., "VATs in Federal Countries: International Experience and Emerging Possibilities", Bulletin for International Fiscal Documentation, 55, pp.293~309 (2001)
- Rethinking Subnational Taxes: A New Look at Tax Assignment, "Bird, Richard, M", ~, pp.IMF Working Paper (1999)
- Boadway, Robin, "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results", Canadian Journal of Economics, 15(4), pp.613~633 (1982)
- Breton, Albert, "Competitive Governments, Globalization, and Equalization Grants", Public Finance Review, 35(4), pp.463~479 (2007)
- Breton, Albert, "A Theory of Government Grants", Canadian Journal of Economics and Political Science, 31(2), pp.175~187 (1965)
- Jan K. Brueckner, "Elements of an Ideal Urban Policy", The Korean Economic Review, 29(1), pp.5~22 (2013), 한국경제학회
- Buchanan, James M, "Federal Grants and Resources Allocation", Journal of Political Economy, 60(3), pp.208~217 (1952)
- Choi, Byungho, "Change and Progress of Local Finance after Local Income and Consumption Tax", Local Finance and Local Tax, (28), pp.3~21 (2010), Korea Local Finance Association
- Flatters, Frank R., "Public Goods, Efficiency, and Regional Fiscal Equalization", Journal of Public Economics, 3(2), pp.99~112 (1974)
- Heller, Walter W, "New Dimension Economy" (1966), Cambridge-Harvard Univ., Press
- Hsiao, Cheng, "Analysis of Panel Data" (1986), Cambridge Uni. Press
- 김정완, "지역생산의 역외유출입에 따른 세원 조정방안: 부가가치세의 공동세원화", 한국지방재정논집, 9(2), pp.51~76 (2004), 한국지방재정학회
- Kothenburger, Karko, "Tax Competition and Fiscal Equalization", International Tax and Public Finance, 9, pp.391~408 (2002)
- Liberati, Paolo, "‘Which Tax’ or ‘Which Tax for What’: Assignment in the Theory of Fiscal Federalism", Public Finance Review, 39(3), pp.365~392 (2011)
- Martinez-Vazquez, "Fighting Corruption in the Public Sector" (2007), Elsevier
- Musgrave, Richard A, "Public Finance: Needs, Sources, and Utilization, NBER", pp.97~122 (1961), Princeton University Press
- National Assembly Budget Office, "Effect of Tax Cuts on Local Finance", Analysis of Budget Issues, (30) (2009)
- National Assembly Budget Office, "Korean Budget in 2010", ~ (2010)
- Oates, Wallace E, "Toward a Second Generation Theory of Fiscal Federalism", International Tax and Public Finance, 12, pp.349~373 (2005)
- Oates, Wallace E, "Fiscal Decentralization and Economic Development", National Tax Journal, 15(2), pp.240~ (1993)
- Pechman, Joseph A, "Federal Tax Policy" (1966), Brooking Institution
- Richard A. Musgrave, "Public Finances: Needs, Sources, and Utilization", pp.97~122 (1961), Princeton University Press
- Robbins, Mark D., "Citizens and Resource Allocation: Improving Decision Making with Interactive Web-Based Citizen Participation", Public Administration Review, 68(3), pp.564~575 (2008)
- Rodden, J., "Fiscal Decentralization and the Challenge of Hard Budget Constraints" (2003), MIT Press
- Sayrs, Lois W, "Pooled Time-series Analysis, Newbury Park" (1986), Sage Press. Inc
- Scott, Anthony D, "Federal Grants and Resources Allocation", Journal of Political Economy, 60(6), pp.534~536 (1952)
- Shah, A, "Participatory Budgeting", pp.2007~ (2007), The World Bank
- Shon, Hejun, "Local Finance" (2001), Daeyungmunwhasa
- Simonsen, William, "Citizen Participation in Resource Allocation" (2000), Westview Press
- Yoo, Taehyun, "Enhancement and Measurement of Local Financial Autonomy after Local Consumption Tax", Local Finance and Local Tax, (28), pp.23~40 (2010), Korea Local Finance Association
- Zee, Howell H, "Aspects of Interjurisdictional Sharing of the Value-Added Tax", Public Finance Review, 36(2), pp.147~168 (2008)