The Effects of Fiscal Policy on Saving:A Generational Accounting Perspectives

• Main Authors: CHEN TIEN CHIEN, 陳添杰
• Other Authors: 劉宗欣
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/8pt5tv

碩士 === 逢甲大學 === 會計與財稅研究所 === 90 === The capital accumulation is the main force to develop the economic growth and the major source of investing capital is depending on savings. Therefore, the level of savings has direct relation along with a country’s economic development. Thus, this is the reason why every government around the world is commonly paying high attention on in-country’s savings level, because savings rates have great significant contribution on economic growth. Consequently, it brings us a discussable question on how to elevate the savings rates in order to bring the economic growth. Naturally, every government around the world is willing to take every possible action of financial policy to intervene the current economic condition, for instantly, the commonly used policy is the tax deduction policy. However, as a fiscal policy has passed and put into action, present and future economic condition will affect the generation net tax. For example, continuously tax deduction and increasable pay-off the social welfare will cause government deficit. When the fiscal deficit is overwhelming, the macro-economic and investment willingness is faced depression. At the same time, the future generation will bear a heavy fiscal deficit burden along with them. Based on this reason, I use generational accounting to calculate Taiwan generation account and the generational imbalance level in 1999. Furthermore, I set every fiscal policy up to simulate exercise as the policy change, and observe and evaluate the changes that could possibly affect the national savings rates and generational imbalance. From the result, I discover the business tax rate could elevate the current generation net tax, but the future generation net tax will decrease. It helps to relieve the level of generational imbalance. However, the national savings rate will go down. From furthermore resource analysis, tariff decrease, estate and gift tax and old-age allowance will decrease current generation net tax, but the future generation net tax will increase. The level of generational imbalance will go up, but the savings rates will elevate. Among the four fiscal policies, when the business tax rate change one percent and it brings the direct impact on savings rate; the elasticity is about 0.037. It is because that the business tax rate is citizen’s major tax. When Estate and gift tax change in one percent; the elasticity about 0.008 direct affect to savings rate because citizen does not have much estate and gift tax for government to tax on. Increasing the Old-age allowance will affect the savings about 0.03. Therefore, if government is considering to stimulate the savings rates; increasing Old-age allowance is better than reduce tariff and Estate and Gift tax.