Bibliographic record
Abstract
Households and firms’ responses to higher tax rates alter the volume and the allocation of land, labour and capital in the economy, reducing our income and consumption opportunities. These economic losses from raising tax revenues have increased for provincial governments across Canada in the last decade with the problem being especially acute in Newfoundland and Labrador, Ontario and British Columbia. However, by lowering personal and corporate income tax rates and shifting more of the tax burden to a sales tax harmonized with the federal GST, the provinces could lower the economic cost of raising tax revenues. Taxpayers’ responses to higher tax rates adversely affect the economy. When rates go up, people are less inclined to save for the future because they must pay higher taxes on interest and dividends, and workers react by avoiding overtime and retiring early. When returns on investment generate higher taxes for corporations, they respond by cutting back their capital expenditures. Also, when people and companies can avoid paying a tax by shifting income or consumption to another jurisdiction with lower tax rates, the tax base will shrink as the tax rate goes up, reducing both income and consumption opportunities — an effect known as the deadweight loss from taxation. The larger the tax base, measured as a share of tax revenues, the greater the deadweight loss from a tax-induced decline in the tax base. All of these reactions to higher tax rates change the volume and allocation of land, capital and labour in the economy. The societal cost from raising extra revenue through a small tax rate increase is called the marginal cost of public funds (MCPF). It can be used to determine which taxes are causing the greatest welfare losses and to measure the gains from shifting the tax burden from the high-cost sources of tax revenues to those that impose a lower deadweight loss. Public projects should use the MCPF in doing a cost-benefit analysis, comparing the project’s benefits with the welfare loss from financing the project through higher taxes. The more reactivehousehold and business decisions are to tax rates, the greater the MCPF. When sales taxes are applied to a wide range of goods and services, people are limited by how much they can change their spending patterns to avoid paying those taxes. Thus, revenue is generated with lower detrimental economic effects than those created by increased personal and corporate income tax rates. Provinces could reduce the problems created by the public’s incentive to avoid paying taxes by both lowering their personal and corporate income tax rates and moving the tax burden over to a general sales tax.
Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.
How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.009 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.001 |
| Bibliometrics | 0.001 | 0.002 |
| Science and technology studies | 0.004 | 0.002 |
| Scholarly communication | 0.006 | 0.002 |
| Open science | 0.001 | 0.003 |
| Research integrity | 0.001 | 0.004 |
| Insufficient payload (model declined to judge) | 0.028 | 0.005 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".