Corporate Social Responsibility and principle of Commodity Taxation

• Main Authors: YU, Ting-Wen, 尤亭文
• Other Authors: 翁堃嵐
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/atn8a2

碩士 === 國立政治大學 === 財政學系 === 107 === As the global trade becomes more liberalized, the economic integration becomes more frequent, and the taxation principle of international commodity tax becomes an important issue. Whether the commodity should adopt the destination principle or the origin principle has always been controversial. Traditionally, world trade tends to apply the destination principle. However, the destination principle is overly dependent on the adjustment of the border tax rate. So, it is difficult to manage in the interregional market. Therefore, many countries have gradually switched their commodity taxation from destination principle to origin principle. In order to make the model closer to the reality, this study uses Haufler, Schjelderup and Stähler (2005)’s structure of taxation principle and takes domestic firm into account on which engages in Corporate Social Responsibility (CSR) . The major findings of this paper are: (1) When the destination principle is adopted, the degree of how much domestic firms value CSR will affect the domestic optimal commodity tax rate, but it will not affect the foreign optimal commodity tax rate. On the contrary, when the origin principle is adopted, the degree of how much domestic firms value CSR will affect not only the domestic optimal commodity tax rate but also that of the foreign countries. (2) The traditional literature found that both domestic and foreign firms aimed to pursue the maximal profit, so both domestic and foreign governments adopt subsidy policies. Yet, we found out that under the principle of optimal taxation, the domestic firms used to pursue the maximal social welfare, while the foreign firms used to pursue the maximal profit. Under the destination principle, the domestic government's optimal tax rate is a positive value, while the foreign government's optimal tax rate is a negative value. Under the origin principle, the domestic government's optimal tax rate is approaching infinity, while the foreign government's optimal tax rate is still a negative value. Regardless of these two conditions, domestic government adopts tax policies, while foreign governments adopt subsidy policies. (3) The traditional literature found that when the demand was linear, that is when0≤γ≤1 and s≥0, the origin principle would be better than the destination principle. However, this paper finds that when the product is homogeneous, that is whenγ=1, the higher the degree of how much domestic firms value CSR is, the more possible the domestic government will adopt the destination principle. Otherwise, the less the domestic firms value CSR, the more possible the domestic government will adopt the origin principle.