Establishment of and Analysis on Levying Model of Personal Income Tax

• Main Authors: Lee, Hsiu-Mei, 李秀美
• Other Authors: Chen Miao-Sheng
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/21210443669933103940

博士 === 淡江大學 === 管理科學研究所 === 84 === The main purpose of this study is to construct specific levying models in the given conditions and to discuss the characteristics of each optimal tax system. Factors that has influences on the establishment of levying model are very complicated.For example, those factors are enviromental conditions, personal value, and various perspectives.This study therefore construct three models based on two assumptions:(1) the sameexemptions for all taxpaying units (2) free choice time and effort dedicated bytaxpaying units toward different tax system.Three models are as follows: (1) Linear Levying Model on Random Income : Since the personal income occurrs after the investment of resources and efforts, a few factors have the opportunityto affect the amount of it. Given the probabilistic relationship between personal income and income potentials,we can establish a linear taxation model through the interactions of individual''sresponses towards tax rate and government''s formulation of tax rate. Through the optimalsolution of the model, we can explore the effects of personal income uncertainty and government''s risk attitude on personal behavior and government strategy. (2) Levying Model with Maximum Revenue : Since the exemption was rarely referred as a parameter in past studies, the previousmethods of constructing a model did not correspond to the current tax law for all practical purposes. In order to make this model more practicable, this study does not onlyregard exemption as a parameter but considerall reactions to tax system from people with different earning abilities. (3) Levying Model with a Given Tax Revenue : In addition to thefactors in Model (2), this study assumes that thetax revenue has to meet the requirements of fiscal financial budget. Thus, the government''s selection of tax system will be limited. Through this model, I analyzethe sensibility of optimal solution to external variables, such as exemption, tax revenue andthe distribution of individual''s earning ability. The major two assumptions in this study would, however, sometimes restrict the applicabilitiesof the models. For example, the amount of the exemption will vary for differenttaxpaying units if the taxation code requires taxpayers adopt certain integrationapproaches. Additionally, taxpaying units can not freely choose the ratio ofworking time and leisure time. Thus, in order to broaden the applicability of the models,this studyproposes an extended model in which the assumptions areliberalized. The study then implies the techniques andprocesses for obtaining the optimal solution in the extended model. Practical operating stepsare also provided.