The challenges of tax policy: a literature study on market and welfare dynamics
Taxes are the government's primary tool for collecting revenue, but their implementation presents challenges such as deadweight loss, market shrinkage, and impacts on welfare and economic efficiency. Appropriate tax policy is needed to optimize state revenue while maintaining market balance and...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Indonesian Institute for Counseling, Education and Therapy (IICET)
2024-12-01
|
| Series: | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
| Subjects: | |
| Online Access: | https://jurnal.iicet.org/index.php/jppi/article/view/5050 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832584555759927296 |
|---|---|
| author | I Nyoman Tingkes I Ketut Sirna I Made Sumartana Ida Ayu Putu Sri Widnyani |
| author_facet | I Nyoman Tingkes I Ketut Sirna I Made Sumartana Ida Ayu Putu Sri Widnyani |
| author_sort | I Nyoman Tingkes |
| collection | DOAJ |
| description | Taxes are the government's primary tool for collecting revenue, but their implementation presents challenges such as deadweight loss, market shrinkage, and impacts on welfare and economic efficiency. Appropriate tax policy is needed to optimize state revenue while maintaining market balance and public welfare. The purpose of this study is to deeply analyze how tax policy affects market dynamics and economic welfare, both on the producer, consumer, and government sides. This research uses a qualitative literature review approach to analyze the impact of tax policy on market dynamics and economic welfare. Data was gathered through documentation from academic sources such as Google Scholar, PubMed, and ScienceDirect, focusing on publications from the last five years. The data was analyzed in three stages: reduction, presentation, and conclusion drawing, to provide a comprehensive, evidence-based understanding and policy recommendations. The study finds that tax policy implementation often results in deadweight loss, reflected in the decrease in total surplus for both producers and consumers. Taxes on elastic goods and services tend to severely impact welfare, highlighting the need for more careful policy design. High tax rates can shrink the market size, ultimately reducing government revenue. Policymakers must balance elasticity levels between producers, consumers, and tax rates to optimize both economic welfare and state revenue. To improve effectiveness, concrete policies are needed, such as progressive tax rates, regular monitoring of tax impacts, and incentives for certain sectors. |
| format | Article |
| id | doaj-art-e79ffd6426d9448298f86a7447c68732 |
| institution | Kabale University |
| issn | 2477-8524 2502-8103 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Indonesian Institute for Counseling, Education and Therapy (IICET) |
| record_format | Article |
| series | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
| spelling | doaj-art-e79ffd6426d9448298f86a7447c687322025-01-27T12:46:15ZengIndonesian Institute for Counseling, Education and Therapy (IICET)JPPI (Jurnal Penelitian Pendidikan Indonesia)2477-85242502-81032024-12-0110494295210.29210/0202450502528The challenges of tax policy: a literature study on market and welfare dynamicsI Nyoman Tingkes0I Ketut Sirna1I Made Sumartana2Ida Ayu Putu Sri Widnyani3Universitas DhyanapuraUniversitas DhyanapuraUniversitas DhyanapuraUniversitas DhyanapuraTaxes are the government's primary tool for collecting revenue, but their implementation presents challenges such as deadweight loss, market shrinkage, and impacts on welfare and economic efficiency. Appropriate tax policy is needed to optimize state revenue while maintaining market balance and public welfare. The purpose of this study is to deeply analyze how tax policy affects market dynamics and economic welfare, both on the producer, consumer, and government sides. This research uses a qualitative literature review approach to analyze the impact of tax policy on market dynamics and economic welfare. Data was gathered through documentation from academic sources such as Google Scholar, PubMed, and ScienceDirect, focusing on publications from the last five years. The data was analyzed in three stages: reduction, presentation, and conclusion drawing, to provide a comprehensive, evidence-based understanding and policy recommendations. The study finds that tax policy implementation often results in deadweight loss, reflected in the decrease in total surplus for both producers and consumers. Taxes on elastic goods and services tend to severely impact welfare, highlighting the need for more careful policy design. High tax rates can shrink the market size, ultimately reducing government revenue. Policymakers must balance elasticity levels between producers, consumers, and tax rates to optimize both economic welfare and state revenue. To improve effectiveness, concrete policies are needed, such as progressive tax rates, regular monitoring of tax impacts, and incentives for certain sectors.https://jurnal.iicet.org/index.php/jppi/article/view/5050elasticity and tax rates |
| spellingShingle | I Nyoman Tingkes I Ketut Sirna I Made Sumartana Ida Ayu Putu Sri Widnyani The challenges of tax policy: a literature study on market and welfare dynamics JPPI (Jurnal Penelitian Pendidikan Indonesia) elasticity and tax rates |
| title | The challenges of tax policy: a literature study on market and welfare dynamics |
| title_full | The challenges of tax policy: a literature study on market and welfare dynamics |
| title_fullStr | The challenges of tax policy: a literature study on market and welfare dynamics |
| title_full_unstemmed | The challenges of tax policy: a literature study on market and welfare dynamics |
| title_short | The challenges of tax policy: a literature study on market and welfare dynamics |
| title_sort | challenges of tax policy a literature study on market and welfare dynamics |
| topic | elasticity and tax rates |
| url | https://jurnal.iicet.org/index.php/jppi/article/view/5050 |
| work_keys_str_mv | AT inyomantingkes thechallengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT iketutsirna thechallengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT imadesumartana thechallengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT idaayuputusriwidnyani thechallengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT inyomantingkes challengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT iketutsirna challengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT imadesumartana challengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics AT idaayuputusriwidnyani challengesoftaxpolicyaliteraturestudyonmarketandwelfaredynamics |