Posts Tagged ‘Economic’

Larry Kotlikoff on Alex Jones Tv 2 / 3: Economic Meltdown!

December 27, 2009

Alex also talks with professor of economics at Boston University, Fellow of the American Academy of Arts and Sciences Research Associate of the National Bureau of Economic Research, Fellow of the Econometric Society and a former senior economist at the President's Council of Economic Advisers, Laurence Kotlikoff. people.bu.edu prisonplanet.tv … Doctor No Ron Paul Republican Liberty Caucus, State of Texas physician End The Fed HR 1207 Campaign For Gold Silver Ben Bernanke Federal Reserve Bank of New York…

http://www.youtube.com/watch?v=tKGwBoIx4Ys&hl=en

How to stimulate an economic recovery plan? – Laura Tyson

December 11, 2009

Andrea Tyson is a professor and former dean of the Haas School of Business at the University of California at Berkeley. Dr. Tyson served in the Clinton Administration from January 1993 to December 1996. Between February 1995 and December 1996 she was President of the National Economic Adviser and was the highest-ranking woman in the White House under Clinton. Prior to her appointment as National Economic Adviser, Dr. Tyson was in the sixteenth Chairman of the White House Council …

http://www.youtube.com/watch?v=PFBil3Th4vA&hl=en

Increasing corporate value to the payment of taxes – Is it a sign of National Economic Growth?

November 26, 2009

Two months back, a business report, published in "Star Business" by The Daily Star pointed out to me. The Daily Star is published in the leading English-language newspaper in Bangladesh. The report showed the increase in tax revenue this year. It is a very happy news that the tax revenue from 1000 crore (100 crore = 1 billion EUR) has increased.

The report also contains a list of the top ten taxpayers for tax and for VAT. The report mentioned the tax amountsfor these companies for the period 2004-2005, 2005-2006, 2006-2007 and 2007-2008. According to information presented in the report, which raised most of the payment of contractors in the event of both corporate tax and VAT. The chairman of the National Board of Revenue (NBR), People's Republic of Bangladesh, is also happy to announce this news. He calls it as a great success for NBR.

Yes, it is a success for NBR. But the news does not indicate a positive economic development of the country? TheQuestion can be determined by calculating the rate of change in the amount of taxes and payment of VAT solved for each period.

When we analyze a financial statement, we see taxes as a function of profit. When profit is the difference between revenues and expenditures, changes in tax is also a function of change in income or expenses. Mathematically we can express this concept as:

Profit = Income – Expenditure
* Tax = profit rate

If we consider two consecutive fiscal years, "as the amount TAX1 and TAX2,Percentage change in the amount of tax (TAX2 – TAX1) / TAX1

= (Profit2 * tax rate – Profit1 * rate) / * Profit1 rate
= (Profit2 – Profit1) / Profit1
= [(Income2 – Expenses2) – (Income1 – Expenses1)] / (Income1 – Expenses1)

Consequently, the growth rate would be positive if the revenues can be increased or costs can be reduced. Alternatively, a negative tax rate may fall if increased revenue or expenditure.

For a single company, positive or negative growth in taxcan be treated as an indicator of success or failure of management performance. If it happens to most of the top companies is no longer taxpayers' individual performance. It is a subject on overall economic growth of the country.

Unlike taxes, VAT will be directly related to sales or revenue in context. If tax increases growth, it must specify a positive sales growth. If tax growth falls, it must raise the question of when revenue growth. Well, most of the top ten tax payers' positive ornegative growth in payment of VAT, of course, also the positive or negative economic growth in the country.

The list includes the top 10 companies of the taxpayers seven banks, two gas companies and mobile operators. Grameen Phone tops the list with a payment of 435 TK crore tax in the period 2007-2008. The prior period tax payment amounts TK 128 crore. Therefore, taxation increased by 239.84% during the period of 2007-2008. But what was the tax growth in recent years?

Table 1:Top 10 corporate taxpayers (Source: The Daily Star, 10 July 2008)

Company Name VAT Amount (in crore TK) – 2007-2008 Change in Tax Payment-2006-2007 2005-2006-2004-2005 – 2007-2008-2006-2007 – 2005-2006

Grameen Phone 435 128 28 6 239.84% 357.14% 366.67%

Standard Chartered Bank 220 188 86 41 17.02% 118.60% 109.76%

Chevron Bangladesh Blocks 13 and 14 Ltd. 180 81 11 to 122.22% 636.36% —

Islami Bank Bangladesh Ltd. 161 101 65 2 59.41% 55.38% 3150.00%

TitasGas (T & D) Company Ltd. 136 97 70 to 40.21% 38,57% —

HSBC 118 78 42 4 51.28% 85.71% 950.00%

Southeast Bank Ltd. 88 49 11 5 79.59% 345.45% 120.00%

Pubali Bank Ltd. 78 44 – 0.12 77.27% – —

Citi Bank NA 76 52 28 14 46.15% 85.71% 100.00%

Prime Bank Ltd. 67 47 26 to 42.55% 80.77% —

In 2005-2006, Grameen tax amount increased from 366.67%, while in the years 2006-2007, tax increased by 357.14%. Therefore, the growth rate per year reduced. Most of the other companies on the list had the samePhenomena. Tax rate for the Standard Chartered Bank in the last three seasons were 109.76%, 118.60% and 17.02%. Thus, in the years 2007-2008, the tax rate fell sharply this bank. The exceptions to this list are Islami Bank Bangladesh Ltd, Titas Gas (T & D) Company Ltd. Titas Gas was 38,57% Tax Growth in 2006-2007, while the growth was 40.21% in 2007-2008 . On the other hand, Islami Bank raised taxes by more than 4% growth in the period 2007-2008. But in the years 2006-2007, their tax growthdeclined sharply. During this time, was their tax growth being 55.38%, while in the years 2005-2006, their fiscal 3150 growth%.

Almost similar story is written for the top 10 tax payers in '07-'08 term.

Table 2: Top 10 tax payers (Source: The Daily Star, 10 July 2008)

Company name – the VAT amount (in crore TK) – Change in VAT payment 2007-2008-2006-2007 2005-2006-2004-2005 – 2007-2008-2006-2007 – 2005-2006

British American Tobacco 2828 2481 2079 1852 13.99% 19.34%12.26%

Grameen Phone 1438 918 985 345 56.64% 185.51% -6.80%

Dhaka Tobacco 1180 1029 962 712 14.67% 6.96% 35.11%

Titas Gas Field 764 835 819 789 -8.50% 1.95% 3.80%

Sheba Telecom 601 252 224 to 138.49% 12.50% —

Hobigonj Gas Field 465 494 512 546 -5.87% -3.52% -6.23%

AKTEL 277 237 328 110 16.88% -27.74% 198.18%

Kailashtila Gas Field 196 159 99 110 23.27% 60,61% -10,00%

Rural Electrification Board 105 18 24 –483.33% -25.00% —

Rashidpur Gas Field 101 125 138 170 -19.20% -9.42% -18.82%

Of the ten, five companies were the growth in payment of VAT in this period reduced as compared to '06-'07. Three of these companies had a negative growth of the VAT payment for the year 2007-2008. Of these ten companies Grameen Phone, Sheba Telecom and REB had very strong growth in the years 2007-2008. Grameen had an increase in their growth in payment of VAT from -6.8% to 56.64%, while Sheba increased growth from 12.5% to 138.49%.REB payment of the tax growth has been sharper. It increased form 25% to 483.33%. On the other hand, British American Tobacco Bangladesh, the highest VAT in Bangladesh, a VAT increase of 13.99% was in the period 2007-2008. Their growth was 19.34% tax in the years 2006-2007. It is also worth mentioning that Grameen had a VAT increase of 185.51% in the years 2005-2006, while growth reduces to -6.80% in the years 2006-2007.

Table 3: Annual tax rate for top 10 companies taxpayers

Company Name – Change in tax payment –Growth 2007-2008-2006-2007 – 2005-2006-2007-2008 – 2006-2007

Grameen Phone 239.84% 357.14% 366.67% -32.84% -2.60%

Standard Chartered Bank 17.02% 118.60% 109.76% -85.65% 8.06%

Chevron Bangladesh Blocks 13 and 14 Ltd. 122.22% 636.36% – -80.79% —

Islami Bank Bangladesh Ltd 59,41% 55.38% 3150.00% 7.26% -98.24%

Titas Gas (T & D) Company Ltd. 40.21% 38,57% – 4,24% —

HSBC 51,28% 85,71% 950.00% -40.17% -90.98%

SoutheastBank Ltd. 79.59% 345.45% 120.00% 187.88% -76.96%

Pubali Bank Ltd. 77.27% – – – —

Citi Bank NA 46.15% 85.71% 100.00% -46.15% -14.29%

Prime Bank Ltd. 42.55% 80.77% – -47.32% —

Total 80.23% 135.69% 408.87% -40.87% -66.81%

Table 4: Annual growth rate for tax-Top-10-VAT payers

Company Name – Change in VAT payment – Growth 2007-2008-2006-2007 – 2005-2006-2007-2008 – 2006-2007

British American Tobacco 13.99%19.34% 12.26% -27.67% 57.76%

Grameen Phone 56.64% -6.80% 185.51% -932.76% -103.67%

Dhaka Tobacco 14.67% 6.96% 35.11% 110.70% -80.16%

Titas gas field -8.50% 1.95% 3.80% -535.25% -48.62%

Sheba Telecom 138.49% 12.50% – 1007.94% —

Hobigonj gasfield -5.87% -3.52% -6.23% 66.98% -43.54%

AKTEL 16.88% -27.74% 198.18% -160.83% -114.00%

Kailashtila gasfield 23,27% 60,61% -10.00% -61.60% -706.06%

RuralElectrification Board 483.33% -25.00% -% -2033.33 —

Rashidpur gas field -19.20% -9.42% -18.82% 103.82% -49.95%

Total 21.49% 6.13% 33.15% 250.73% -81.52%

It is very alarming that the rate of growth for both corporate tax and VAT on most top ten companies in both 2006-2007 and 2007-2008 are negative. Therefore, the additional taxes amounting to no information on the positive economic development of the country.

The Government of the People's Republic of Bangladesh haveimputed to focus more on the economic development of the country and find the reasons that would cause the decline in economic growth in the country.

Larry Kotlikoff on Alex Jones Tv 1 / 3: Economic Meltdown!

November 19, 2009

Alex also talks with professor of economics at Boston University, Fellow of the American Academy of Arts and Sciences Research Associate of the National Bureau of Economic Research, Fellow of the Econometric Society and a former senior economist at the President's Council of Economic Advisers, Laurence Kotlikoff. people.bu.edu prisonplanet.tv … Doctor No Ron Paul Republican Liberty Caucus, State of Texas physician End The Fed HR 1207 Campaign For Gold Silver Ben Bernanke Federal Reserve Bank of New York…

http://www.youtube.com/watch?v=BmOFqGvIRlI&hl=en