| Summary: | 碩士 === 國立中興大學 === 應用經濟學系所 === 101 === The uneven economic development of Taiwan’s counties and cities influences their different individual income tax revenues and the structural rigidity, which results from the long term distinct regional economic development gap between urban and rural areas. Based on the Yearbook of Financial Statistics and the Yearbook of Tax Statistics from Fiscal Information Agency, Ministry of Finance, R.O.C. and the statistics data from Department of Household Registration Affairs, Ministry of the Interior, the study explores factors affecting the individual income tax revenues of Taiwan’s counties and cities from 1998 to 2010 and sets up a structural model of these factors. The fixed effect model is used for empirical estimation so as to analyze the important factors affecting the individual income tax revenues as well as their economic implications.
The higher the personal exemptions is, the more losses in revenue of high earners who are applicable to tax exemption will have. The higher individual income tax revenue is, the higher the amount of withholding tax and imputation credit will be, indicating that the tax revenue temporarily withheld in public treasury of payment and income is higher, so is individual income tax revenue.
Economic development indeed has an effect on individual income tax revenue which, in turn, reflects the economic situation and fluctuates along with it. The positive fixed effect refers to counties and cities with higher degree of urbanization, while the negative fixed effect indicates remote rural areas. It can be found that different individual income tax revenue of Taiwan’s counties and cities and the structural rigidity are resulted from the long term distinct regional economic development gap between urban and rural areas.
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