2017 NABO Fiscal Projection and Tax Revenue/System Analysis Series
The report on 2017 NABO Fiscal Projection and Tax Revenue/System Analysis Series has been published in order to support the National Assembly’s legislative activity regarding the deliberation of the 2018 Budget Plan and the management of national finances. This series consists of a total of 4 types of reports, Analysis of the Draft 2017 Tax Code Revision, Analysis of the 2018 Tax Revenue Budget Plan and Medium-Term Total Income Forecast, 2017-2021 NABO Fiscal Forecast, and Analysis of the 2018 Tax Expenditure Budget Statement.
I. Analysis of the Tax Code Revision Bill 2017
This report provides an in-depth analysis of the draft 2017 Tax Code Revision. The effects of tax revenue and the incidence of taxation from the draft Tax Code revision were analyzed, and the core policy initiatives of the new administration—tax incentives to support jobs, expand EITC(Earned Icome Tax Credit) and CTC(Child Tax Credit), methods to reinforce transparency of the tax base contributed by those subject to aggregate income reporting—were designated as key assignments and were analyzed. Key issues are introduced in the specific analyses of major types of tax, with efforts to draw policy implications.
Ⅱ. Analysis of the 2018 Tax Revenue Budget Plan and Medium-Term Tax Revenue Outlook
This section was written to support the deliberation of the 2018 Budget Bill which was submitted by the government. A forecast of the total revenue of fiscal year 2018 and of the period from 2017 to 2021 is made, which is then compared to the outcomes drawn by the administrative body. Also, the various issues raised regarding the 2018 tax revenue budget are analyzed with efforts to provide measures for improvement.
Ⅲ. 2017-2021 NABO Fiscal Outlook
Fiscal Outlook is made on the expected fiscal changes over the next five years, once the fiscal policies included in the government-submitted budget plan and the National Finance Management Plan are implemented. This section is written to support the budget plan deliberation of the National Assembly. Based on the projection outcomes of total revenue, total expenditure, fiscal balance, national debt, etc., a comparison is made with past trends, baselines and the National Finance Management Plans, thereby observing effects such as the overall fiscal changes, the effect of policy changes and the appropriateness of the fiscal policies.
Ⅳ. Analysis of the 2018 Tax Expenditure Budget Statement.
This section examines the management and maintenance status of 2017 and sets out tasks for improvement such as improving the effect of tax expenditures across the classes that benefit, linking tax expenditure and fiscal expenditure, structural improvement of the types of tax expenditure without a sunset clause as well as the accounting of labor and child support subsidies that are managed by tax expenditures. Furthermore, an evaluation is made of the government’s maintenance measures regarding the 50 items that are expected to be terminated this year, along with additional measures to simplify the tax system