Do you want your taxes smooth or spiky?

Cliffs, Discontinuities, Thresholds:

Don Marron illustrates that cliffs make  little sense for soda taxes here or at http://www.taxpolicycenter.org/taxvox/building-better-soda-tax.

Cliffs create problems for the income tax herehttp://scholarship.law.upenn.edu/cgi/viewcontent.cgi?article=9520&context=penn_law_review

For marijuana grows, cliffs’ problems are discussed here or at https://newrevenue.org/2015/10/07/humboldts-principled-cannabis-tax/ Continue reading “Do you want your taxes smooth or spiky?”

Transfer pricing explained

Transfer pricing explained, by the Nicholas Confessore of the New York Times:

What Oesterlund [a wealthy individual hiding assets during a divorce] had done is known as “transfer pricing,” a practice that has come under growing criticism in recent years. Multinational corporations use it to shift their costs to high-tax countries and their profits to low-tax countries. Often, there is little or no economic reality to these transactions. Continue reading “Transfer pricing explained”