On the timeliness of tax reform

This paper analyzes efficient government reactions to unanticipated tax avoidance. Quickly reforming tax laws to reduce the effectiveness of new tax avoidance techniques prevents widespread adoption, but indirectly encourages the rapid development of new avoidance methods if prior users are permitted to retain their tax benefits. Tax reforms that immediately prevent new avoidance mean that innovators need not fear imitation by competitors, and cannot rely on copying the innovations of others. Such an activist reform agenda diverts greater resources into tax avoidance activity, and might thereby lead to a faster rate of tax base erosion, than would a less reactive government strategy. Efficient government policy therefore entails either the retroactive elimination of tax savings, with possible associated costs, or else a deliberate pace of tax reform in response to taxpayer innovation.     

Animal foods and climate change: shadowing eating practices

Animal farming exceeds all forms of transport in terms of global greenhouse gas (GHG) emissions. Despite the implications of the seriousness of addressing animal farming in relation to mitigating the effects of GHG emissions, to date, the relationship between consumer behaviour and climate change has tended to neglect the role of animal foods. This paper reports on a pilot study in which six UK households were ‘shadowed’ to facilitate the investigation of the relationship between animal food practices and environmental practices, as they emerge in day‐to‐day life. Results indicate that most participants make no connection between the two issues at present, in terms of awareness or practice. However, animal foods do have an ambiguous and complex status in most participants' food practices; for instance, being viewed as problematic for reasons of health or animal welfare. This finding suggests that further research is needed into the potential for raising awareness of the link between animal‐based foods and climate change. This might have a role to play in shifting food practices towards more plant‐based, less GHG intensive, foods.     

Twentieth-century political economy: a brief history of global capitalism

Modern capitalism emerged in the early nineteenth century inwestern Europe and the European offshoots of the Americas andOceania. Recognizing the unparalleled dynamism of the new socio-economicsystem, Marx and Engels predicted in 1848 that capitalism wouldspread to the entire world. By the end of the twentieth century,that prediction was confirmed: capitalism had indeed becomeglobal, but only after a tortuous and violent course of institutionalchange in many parts of the world. This paper provides a briefaccount of the emergence of global capitalism, and discussessome of the reasons why the diffusion of capitalism has beenso conflictual and violently contested.     

Time for a change!

Learn how one successful manufacturer uses in-house training to cut the time it takes to do things in all areas of the company. Learn basic principles that can be used by anyone to reduce time in their work, no matter what job they do.     

Building stable customer relationships that stand the test of time

This article shows how Baldor Electric Company is using training to build a foundation for improving service in all areas of the business. It covers the background that led to Baldor Electric's decision to develop service training in-house, the steps that Baldor took in putting the course together, and the actual principles taught in the Baldor service course. The Baldor service course teaches basic principles that can be used by all employees to improve customer service, no matter what job they do.     

A compass for customer needs

Baldor Electric uses a tool it calls the value formula to help teach its employees to look at their work through the eyes of the customer. In fact, the goal of the value improvement process is to focus everyone on customer value, and the employees, by going through five training courses, learn how improving quality and service and reducing cost and time lead to higher value for the customer.     

Foreign direct investment in a world of multiple taxes

Governments impose multiple taxes on foreign investors, though studies of the effect of tax policy on the location of foreign direct investment (FDI) focus almost exclusively on corporate income taxes. This paper examines the impact of indirect (non-income) taxes on FDI by American multinational firms, using affiliate-level data that permit the introduction of controls for parent companies and affiliate industries. Indirect tax burdens significantly exceed the foreign income tax obligations of foreign affiliates of American companies. Estimates imply that 10% higher local indirect tax rates are associated with 7.1% lower affiliate assets, which is similar to the effect of 10% higher income tax rates. Affiliate output falls by 2.9% as indirect taxes rise by 10%, while higher income taxes have more modest output effects. High corporate income tax rates depress capital/labor ratios and profit rates of foreign affiliates, whereas high indirect tax rates do not. These patterns reveal the impact of indirect taxes and suggest the mechanisms by which direct and indirect taxes affect FDI.