At times of great discussions over whether the Internet sales should be taxed or not, the link below offers some arguments against online taxes.
i) the Internet is not tax-free shopping, online users already pay a myriad of telecommunication taxes.
ii) Internet tax sales only levels the playing field if a national sales tax is imposed.
iii) consumers are not willing to pay for Internet sales tax. If this happens, studies show that online users will shop elsewhere.
iv) tax is not avoided either buying online or at bricks-and-mortar stores since online retailers are required to have physical presence in the buyer's state in order to collect sales tax.
v) there is no evidence that cities and states have lost revenue by technology driven economic activity.
vi) cities, states, and countries do not desesperately need to tax online sales since they can have other forms of taxation: personal and corporte incomes.
vii) the Internet is not killing "Main Street" businesses because many customers get information online but buy offline.
Other arguments against online sales tax: i) Amazon threatens to pull out warehouses from states that charge taxes and cease business with affiliates ii) this is protected by the "Commerce Clause" (no state can impose a barrier on commerce between states) iii) will harm many small Internet start-up companies iv) online retailers prefer that one set of national rules be adopted rather than state-by-state laws.
www.nointernettax.org/default.asp?Page=Myths
quinta-feira, 21 de abril de 2011
The Considerations for Uniform Taxation
The paper "The Uneasy Case for Uniform Taxation" examines uniform taxation in the context of tax reform. It considers that an optimal tax system should impose rules that vary by type of income and taxpayer.
According to fairness, everyone pays the same amount of taxes and tax burden allocation should be based on income. According to efficiency, taxation should minimize economic distortions and correct market inefficiencies.
The merits of selective taxation are i) new economic and political theories ii) improve the ability of the taxing authorities to collect and enforce taxes iii) address the detrimental effects of the increasing international flows of capital which severely undermine the validity of a uniform tax system.
"Merely making the tax system more uniform may not improve fairness and efficiency".
It is important to be aware that all taxes cause economic distortion and all have equity consequences. We should not substitute slogans for an analysis of the costs and benefits of specific tax proposals. Although good reasons often support uniform taxation, circumstances likely exist where it is appropriate to differentiate among types of income and types of taxpayers.
According to the "The Case Against Worldwide Taxation", uniform taxation proposed by Organization for Economic Cooperation and Development (OECD) harms competition since poor countries could no longer use tax exemptions to attract business. It will cost them more with subsidies to convince retailers to invest and will make greater the disadvantage for marginal areas and endangers sovereignty by introducing international bureaucracy.
Uniform tax is "not uniform" in its effects. The case study of "Bradley-Burns Uniform" states these effects.
According to "no Internet Tax" uniform taxation reduces competition between tax rates among local authorities and limits the control that tax authorities have over establishing and defining their own tax rates.
https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=16+Va.+Tax+Rev.+39&srctype=smi&srcid=3B15&key=b9bfb06a180090016564e4b432329dc4
http://www.limitedgovernment.org/publications/pubs/briefs/pdfs/brf7-38.PDF
http://www.nointernettax.org/default.asp?Page=Myths
According to fairness, everyone pays the same amount of taxes and tax burden allocation should be based on income. According to efficiency, taxation should minimize economic distortions and correct market inefficiencies.
The merits of selective taxation are i) new economic and political theories ii) improve the ability of the taxing authorities to collect and enforce taxes iii) address the detrimental effects of the increasing international flows of capital which severely undermine the validity of a uniform tax system.
"Merely making the tax system more uniform may not improve fairness and efficiency".
It is important to be aware that all taxes cause economic distortion and all have equity consequences. We should not substitute slogans for an analysis of the costs and benefits of specific tax proposals. Although good reasons often support uniform taxation, circumstances likely exist where it is appropriate to differentiate among types of income and types of taxpayers.
According to the "The Case Against Worldwide Taxation", uniform taxation proposed by Organization for Economic Cooperation and Development (OECD) harms competition since poor countries could no longer use tax exemptions to attract business. It will cost them more with subsidies to convince retailers to invest and will make greater the disadvantage for marginal areas and endangers sovereignty by introducing international bureaucracy.
Uniform tax is "not uniform" in its effects. The case study of "Bradley-Burns Uniform" states these effects.
According to "no Internet Tax" uniform taxation reduces competition between tax rates among local authorities and limits the control that tax authorities have over establishing and defining their own tax rates.
https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=16+Va.+Tax+Rev.+39&srctype=smi&srcid=3B15&key=b9bfb06a180090016564e4b432329dc4
http://www.limitedgovernment.org/publications/pubs/briefs/pdfs/brf7-38.PDF
http://www.nointernettax.org/default.asp?Page=Myths
The risks of lifting tax exemptions
"GET Exemption in Peril" deals with the challenges imposed by tax exemption for increasing state revenues.
Tax exemptions are granted to offset the negative impact of the General Excise Tax (GET) on Business-to-Business transactions and to attract economic activity.
Lawmakers agree on that i) tax exemptions should be periodically reviewed to determine whether they still make sense as a tax policy ii) set a lower 0.5 percent rate on wholesale transactions where businesses buy products from other businesses to sell as retail and iii) awarded to minimize pyramid effect.
The problem is that revenue estimates - with tax exemptions - are considerably lower than previous predictions because tax analysts suspect that lifting the exemption could change behavior among awardees. Aircrafts said that lifting tax exemption will force them to i) increase the cost of new constructions and renovations ii) scale back expansion plan iii) lay off workers and iv) increase fees.
http://www.staradvertiser.com/news/20110417_GET_exemptions_in_peril.html
Tax exemptions are granted to offset the negative impact of the General Excise Tax (GET) on Business-to-Business transactions and to attract economic activity.
Lawmakers agree on that i) tax exemptions should be periodically reviewed to determine whether they still make sense as a tax policy ii) set a lower 0.5 percent rate on wholesale transactions where businesses buy products from other businesses to sell as retail and iii) awarded to minimize pyramid effect.
The problem is that revenue estimates - with tax exemptions - are considerably lower than previous predictions because tax analysts suspect that lifting the exemption could change behavior among awardees. Aircrafts said that lifting tax exemption will force them to i) increase the cost of new constructions and renovations ii) scale back expansion plan iii) lay off workers and iv) increase fees.
http://www.staradvertiser.com/news/20110417_GET_exemptions_in_peril.html
Regulation and Alternative Energy Sources
The article from the Star Advertiser "Power Struggle Plays Out" talks about the regulation challenge for a decentralized energy model.
According to Hawaii's electricity regulation, when the amount of photovoltaic (PV) on a circuit reaches 15 percent of the total capacity, Hawaiian Electric Company (HECO) requires the homeowner or business seeking to install the system to conduct an interconnection study. The specter of having to do the costly study kills new projects. This study aims to determine how any particular project exceeding the threshold will affect other customers on the circuit.
According to PV contractors, there is room to double the number of projects but for this regulation restriction.
15 percent trigger point has been reached or exceeded on 11 of the island's 465 circuits, 18 of the 140 on the Big Island, and 3 of the 90 on Maui.
15 percent is also used by utilities in California. This level is recommended by the Institute of Electricity and Electronic Engineers. It is argued that this regulation is needed to protect the integrity of the grid ans alternative energy sources such as solar power are intermittent in nature. This can have a negative impact on HECO's effort to balance the load on its grid.
http://www.staradvertiser.com/business/20110417__Power_struggle_plays_out.html
According to Hawaii's electricity regulation, when the amount of photovoltaic (PV) on a circuit reaches 15 percent of the total capacity, Hawaiian Electric Company (HECO) requires the homeowner or business seeking to install the system to conduct an interconnection study. The specter of having to do the costly study kills new projects. This study aims to determine how any particular project exceeding the threshold will affect other customers on the circuit.
According to PV contractors, there is room to double the number of projects but for this regulation restriction.
15 percent trigger point has been reached or exceeded on 11 of the island's 465 circuits, 18 of the 140 on the Big Island, and 3 of the 90 on Maui.
15 percent is also used by utilities in California. This level is recommended by the Institute of Electricity and Electronic Engineers. It is argued that this regulation is needed to protect the integrity of the grid ans alternative energy sources such as solar power are intermittent in nature. This can have a negative impact on HECO's effort to balance the load on its grid.
http://www.staradvertiser.com/business/20110417__Power_struggle_plays_out.html
Ethical Dilemmas
These are interesting tools we have been taught to resolve ethical dilemmas - competing values - in public administration.
First, consider the virtue, duties, and consequences of what is at stake.
Second, make a decision and analyse it through the lenses of universality, reversibility, and transparency.
First, consider the virtue, duties, and consequences of what is at stake.
Second, make a decision and analyse it through the lenses of universality, reversibility, and transparency.
domingo, 17 de abril de 2011
Federal Budget Battle in the US
“In Budgeting Battled: Tax and Spending Myths and Realities” the New York Times editorial talks about the stalemate of federal budget debate.
The Republicans want to cut US$ 4.3 trillion of government spendings over the next ten years and US$ 4.2 trillion of tax revenues.
NYT agrees that government spendings have to be controlled but slashing vital social services just to support more tax cuts means bad policy and bad economics.
Reagan promised that tax cuts would spur economic growth and later pay for themselves. In the face of growing deficit, he was forced to raise taxes to close the gap.
Clinton disproved the notion that higher taxes would inevitably stifle economic growth or cost politicians their jobs. During his mandate, the economy was strong and stock market surged. In 1997, the administration decided on tax cuts but enacted higher tax rates on the wealthy.
Bush administration did not collect US$ 1.65 trillion through tax cuts. The economic recovery of Bush years was extraordinarily weak by historical standards.
Obama’s proposed budget for fiscal year 2012 is a mix of tax increases and tax cuts. The problems of this proposal are the clarification of the new sources of revenue, defense cuts, spendings on health care and on entitlements.
NYT editorial agrees that raising income taxes should start with rich Americans, who have been the biggest beneficiaries of Bush-era tax cuts. This measure will not dig the country out of its hole, though. Middle class has also to pay higher taxes as this is the only way for i) keeping needed services, ii) tackle deficit, iii) slow borrowing, and iv) rise interest payments. Other source of tax revenue will be i) energy ii) financial transaction and iii) value-added.
Obama also has to change political debate. He has to abolish the tax-cuts-above-all ideology. He has to make the case for tax increases based on reality.
http://www.nytimes.com/2011/04/13/opinion/13wed1.html?partner=rss&emc=rss
The Republicans want to cut US$ 4.3 trillion of government spendings over the next ten years and US$ 4.2 trillion of tax revenues.
NYT agrees that government spendings have to be controlled but slashing vital social services just to support more tax cuts means bad policy and bad economics.
Reagan promised that tax cuts would spur economic growth and later pay for themselves. In the face of growing deficit, he was forced to raise taxes to close the gap.
Clinton disproved the notion that higher taxes would inevitably stifle economic growth or cost politicians their jobs. During his mandate, the economy was strong and stock market surged. In 1997, the administration decided on tax cuts but enacted higher tax rates on the wealthy.
Bush administration did not collect US$ 1.65 trillion through tax cuts. The economic recovery of Bush years was extraordinarily weak by historical standards.
Obama’s proposed budget for fiscal year 2012 is a mix of tax increases and tax cuts. The problems of this proposal are the clarification of the new sources of revenue, defense cuts, spendings on health care and on entitlements.
NYT editorial agrees that raising income taxes should start with rich Americans, who have been the biggest beneficiaries of Bush-era tax cuts. This measure will not dig the country out of its hole, though. Middle class has also to pay higher taxes as this is the only way for i) keeping needed services, ii) tackle deficit, iii) slow borrowing, and iv) rise interest payments. Other source of tax revenue will be i) energy ii) financial transaction and iii) value-added.
Obama also has to change political debate. He has to abolish the tax-cuts-above-all ideology. He has to make the case for tax increases based on reality.
http://www.nytimes.com/2011/04/13/opinion/13wed1.html?partner=rss&emc=rss
Simplifying Sales Tax
What is Streamlined Sales Tax?
This is an agreement to minimize costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It also encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. This agreement levels the playing field by forcing “brick-and-mortar” stores and remore sellers to operate under the same rules. Finally, it ensures that all retailers can conduct their business in a fair, competitive environment.
This system was created by the National Governor’s Association (NGA) and the National Conference of State Legislative (NCSL) in 1999.
It simplifies sales tax administration by tapping into more efficient administrative procedures and emerging technologies. This process leads to i) uniform tax definitions ii) uniform and simpler exemption administrative iii) rate simplification iv) state-level administration of all sales tax v) uniform sourcing.
Business that use Streamlined are immune from audit liability for the sales they process through the software. In addition, states pay the costs of this service for any business that does not have a physical presence in the state.
The innovations of Streamlined are i) business no longer have to wonder how one states’ definition differs from another state ii) they only need to know whether the produc or service they sell is taxable or exempt.
The reduction of business administrative expenses happen through i) uniform definitions ii) rate simplification iii) rate and boundary databases iv) state level tax administration v) uniform sourcing rules vi) uniform exemption administration vii) uniform audit procedures and viii) state funding.
http://www.streamlinedsalestax.org/index.php?page=faqs
This is an agreement to minimize costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It also encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. This agreement levels the playing field by forcing “brick-and-mortar” stores and remore sellers to operate under the same rules. Finally, it ensures that all retailers can conduct their business in a fair, competitive environment.
This system was created by the National Governor’s Association (NGA) and the National Conference of State Legislative (NCSL) in 1999.
It simplifies sales tax administration by tapping into more efficient administrative procedures and emerging technologies. This process leads to i) uniform tax definitions ii) uniform and simpler exemption administrative iii) rate simplification iv) state-level administration of all sales tax v) uniform sourcing.
Business that use Streamlined are immune from audit liability for the sales they process through the software. In addition, states pay the costs of this service for any business that does not have a physical presence in the state.
The innovations of Streamlined are i) business no longer have to wonder how one states’ definition differs from another state ii) they only need to know whether the produc or service they sell is taxable or exempt.
The reduction of business administrative expenses happen through i) uniform definitions ii) rate simplification iii) rate and boundary databases iv) state level tax administration v) uniform sourcing rules vi) uniform exemption administration vii) uniform audit procedures and viii) state funding.
http://www.streamlinedsalestax.org/index.php?page=faqs
Energy Use
In “Using Energy More Efficiently” Amory Lovins from Rocky Mountain Institute argues that market forces, not regulation, will play the key role in promoting more efficient energy consumption.
Companies and markets outpace policymakers in the race for solutions. However, executives often overlook the opportunities for saving money with energy because it is only 1-2% of the cost of doing business. But saving energy is among the highest-return investment anywhere and it goes straight to the bottom line.
It is necessary to create a culture of measurement, curiosity, and improvement by unleashing human creativity. Policies need to support “business logic”.
An example is the policy innovation for electricity sector. Decoupling the profits of utilities from their sales volume allows utilities to keep a small share of the savings they achieve for their customers. In other words, the utilities are rewarded for cutting your bill, not for selling you more energy.
“The private market is so dynamic that it will be an immensely more responsive, powerful, creative force that public policy, which continue to play catch-up”.
http://www.mckinseyquarterly.com/Using_energy_more_efficiently_An_interview_with_the_Rocky_Mountain_Institutes_Amory_Lovins_2164
Companies and markets outpace policymakers in the race for solutions. However, executives often overlook the opportunities for saving money with energy because it is only 1-2% of the cost of doing business. But saving energy is among the highest-return investment anywhere and it goes straight to the bottom line.
It is necessary to create a culture of measurement, curiosity, and improvement by unleashing human creativity. Policies need to support “business logic”.
An example is the policy innovation for electricity sector. Decoupling the profits of utilities from their sales volume allows utilities to keep a small share of the savings they achieve for their customers. In other words, the utilities are rewarded for cutting your bill, not for selling you more energy.
“The private market is so dynamic that it will be an immensely more responsive, powerful, creative force that public policy, which continue to play catch-up”.
http://www.mckinseyquarterly.com/Using_energy_more_efficiently_An_interview_with_the_Rocky_Mountain_Institutes_Amory_Lovins_2164
Rocky Mountain Institute
Rocky Mountain Institute is a think-tank that drives the efficient and restorative use of resources.
It is engaged in research that addresses pragmatic designs, practices, policies – not social theories and laboratory experiments.
It works on solution process – idea, strategy, and implementation – with different players in the private, public, and civil society sectors.
The guiding principles of the institute are the four principles of “Natural Capitalism” from Paul Hawken: i) productivity of natural resources ii) closed-loop production systems iii) service-oriented business model and iv) natural capital.
http://www.rmi.org/rmi/
It is engaged in research that addresses pragmatic designs, practices, policies – not social theories and laboratory experiments.
It works on solution process – idea, strategy, and implementation – with different players in the private, public, and civil society sectors.
The guiding principles of the institute are the four principles of “Natural Capitalism” from Paul Hawken: i) productivity of natural resources ii) closed-loop production systems iii) service-oriented business model and iv) natural capital.
http://www.rmi.org/rmi/
Smart grids in Singapore
The Energy Market Authority from Singapore has created the project “Intelligent Energy System” to deal with the challenges of building smart grids.
Smart grid is a network of computers and power infrastructure that monitor and manage energy usage.
The three components of a smart grid are i) advanced metering and communications infrastructure ii) demand response management systems and iii) management systems for distributed energy sources.
Energy management is done through the Internet since it helps delivering information that allows customers and market to make smarter choices.
The investment issues of smart grids are i) enhanced IT ii) communication infrastructure iii) cyber security iv) compatibility on both ends (customer and utility) and v) customer privacy.
http://www.ema.gov.sg/page/135/id:83/
Smart grid is a network of computers and power infrastructure that monitor and manage energy usage.
The three components of a smart grid are i) advanced metering and communications infrastructure ii) demand response management systems and iii) management systems for distributed energy sources.
Energy management is done through the Internet since it helps delivering information that allows customers and market to make smarter choices.
The investment issues of smart grids are i) enhanced IT ii) communication infrastructure iii) cyber security iv) compatibility on both ends (customer and utility) and v) customer privacy.
http://www.ema.gov.sg/page/135/id:83/
sexta-feira, 8 de abril de 2011
Adressing Budget Deficits
In "Public Budgeting in 2020" Joyce and Pattison urge the need to address large budget deficits created by high demands for government services.
To address this deficit effectively, it is required reforms at both ends: revenue and spending. In the revenue side there are i) income ii) sales ii) property taxes. In the spending side i) health care ii) education iii) entitlement iv) infrastructure v) staff vi) transparency and accountability.
The defining characteristic of public budgeting is that it is a continual struggle between the demands placed on government to respond to societal problems and the desires of citizens and the capacity of governments to finance those responses.
In the revenue side, the four big problems of of income tax are i) vulnerability to economic downturns ii) large number of exclusions iii) complexity and obscurity iv) tax on all incomes disencouraging savings and investment. Solutions would be the creation of a structure i) less prone to cyclical variation ii) broader base iii) easier to comply with iv) encourage savings and investment.
The two main problems with sales tax are i) regressive - lower income people pay higher percentages of their income in tax than higher-income people. This problem is somewhat mitigated by the exclusion of some necessities from tax base like food and drug prescription ii) sales transaction over the Internet (use tax). An important solution ro address "use tax" is the Streamlined Sales Tax Project which makes state sales tax administration more uniform and thus easier for remore sellers to comply with.
The two main problems about property tax are i) doing accurate and equitable assessments and ii) tax limitation.
In the spendings side, the government address aging infrastructure with Private-Public Partnerships and other creative financial arrangements. All spending factors should be assessed by Performance Management (PM).
PM focuses on organization's resources and efforts toward achieving specific results that make the most difference to citizens, It also builds a culture of continuous improvement through which organizations are motivated to find and apply interventions that offer the best results for the least amount of money.
PM also relies on communication to be effective. Credible information produced and made available in a usable form help establish accountability throughout the organization and provide improved results to the public.
Budget-decision making requires data collection, organization, interpretation, and access to be improved. Also, it is necessary centralized financial control and staff with "big picture" perspective to determine where to cut services.
New staff need to be critical thinkers and analysts, have knowledge in financial & performance & accounting & auditing & contracts & negotiation as more privatization and outsourcing will occur and there will be more leaner budget offices.
To address this deficit effectively, it is required reforms at both ends: revenue and spending. In the revenue side there are i) income ii) sales ii) property taxes. In the spending side i) health care ii) education iii) entitlement iv) infrastructure v) staff vi) transparency and accountability.
The defining characteristic of public budgeting is that it is a continual struggle between the demands placed on government to respond to societal problems and the desires of citizens and the capacity of governments to finance those responses.
In the revenue side, the four big problems of of income tax are i) vulnerability to economic downturns ii) large number of exclusions iii) complexity and obscurity iv) tax on all incomes disencouraging savings and investment. Solutions would be the creation of a structure i) less prone to cyclical variation ii) broader base iii) easier to comply with iv) encourage savings and investment.
The two main problems with sales tax are i) regressive - lower income people pay higher percentages of their income in tax than higher-income people. This problem is somewhat mitigated by the exclusion of some necessities from tax base like food and drug prescription ii) sales transaction over the Internet (use tax). An important solution ro address "use tax" is the Streamlined Sales Tax Project which makes state sales tax administration more uniform and thus easier for remore sellers to comply with.
The two main problems about property tax are i) doing accurate and equitable assessments and ii) tax limitation.
In the spendings side, the government address aging infrastructure with Private-Public Partnerships and other creative financial arrangements. All spending factors should be assessed by Performance Management (PM).
PM focuses on organization's resources and efforts toward achieving specific results that make the most difference to citizens, It also builds a culture of continuous improvement through which organizations are motivated to find and apply interventions that offer the best results for the least amount of money.
PM also relies on communication to be effective. Credible information produced and made available in a usable form help establish accountability throughout the organization and provide improved results to the public.
Budget-decision making requires data collection, organization, interpretation, and access to be improved. Also, it is necessary centralized financial control and staff with "big picture" perspective to determine where to cut services.
New staff need to be critical thinkers and analysts, have knowledge in financial & performance & accounting & auditing & contracts & negotiation as more privatization and outsourcing will occur and there will be more leaner budget offices.
The Limits of Performance Budgeting
In "NOAA's Resurrection of Program Budgeting" West, Lindquist, and Mosher-Howe explain the limits of performance assessment as a means of reallocating resources and responsibilities across organization boundaries.
Before rationalizing performance, it is necessary to rationalize structure. The steps to do so are i) creating new norms and routines ii) ensuring adequate resources iii) carry out a comprehensive rational analysis to assess whether costs outweigh benefits in terms of better decisions.
Other problems with Planning, Programming, and Budgeting System (PPBS) are i) organizational commitmment ii) conflicting incentives iii) control of cross-cutting lines iv) accountability v) its complexity which end up reinforcing bureacratic inertia and vi) lack of political support.
Cross-cutting lines of accountability was a type of matrix management popular during 1970s and 1980s. Individuals who belonged to functional divisions were assigned to temporary teams in accordance with the needs of particular projects.
Although budgeting i) allows planning ii) hold officials accountable iii) identify redundancies iv) compare marginal utility of spending on different activities with similar goals, perfomance budgeting is not always the best solution to reinforce these positive aspects of budgeting.
Before rationalizing performance, it is necessary to rationalize structure. The steps to do so are i) creating new norms and routines ii) ensuring adequate resources iii) carry out a comprehensive rational analysis to assess whether costs outweigh benefits in terms of better decisions.
Other problems with Planning, Programming, and Budgeting System (PPBS) are i) organizational commitmment ii) conflicting incentives iii) control of cross-cutting lines iv) accountability v) its complexity which end up reinforcing bureacratic inertia and vi) lack of political support.
Cross-cutting lines of accountability was a type of matrix management popular during 1970s and 1980s. Individuals who belonged to functional divisions were assigned to temporary teams in accordance with the needs of particular projects.
Although budgeting i) allows planning ii) hold officials accountable iii) identify redundancies iv) compare marginal utility of spending on different activities with similar goals, perfomance budgeting is not always the best solution to reinforce these positive aspects of budgeting.
Performance Budgeting
In "Performance Budgeting" Yi Lu examines the perspective and the role of state agencies on perfomance budgeting. This concept is defined as the integration of performance with budgeting.
Tha main findings of Lu's research were i) agencies play an important role in this process ii) the need of elevating managerial capability iii) the use of performance information iii) improvement of measurement quality and iv) this is a collaborative process.
Tha main findings of Lu's research were i) agencies play an important role in this process ii) the need of elevating managerial capability iii) the use of performance information iii) improvement of measurement quality and iv) this is a collaborative process.
Education in Singapore
Tan and Gopinatha in "Education Reform in Singapore: Towards Greater Creativity and Innovation" talk about how the country's educational system is moving into the 21st century.
Singaporean schools have the mandate to foster creativity and innovation to enhance national economic competitiveness in the global economy. This is essential to help the country transition to a knowledge economy.
The three educational policy initiatives are i) Thinking Schools ii) Learning Nations and iii) Masterplan for Information Technology in Education.
Creativity and innovation are fostered by growing marketizantion of education through increased school autonomy and interschool competition.
Independet schools enjoy autonomy and flexibility for i) recruitment ii) deployment iii) reward iv) finance v) management and vi) the curriculum. The problem of these schools are high costs.
"Autonomous schools" were created to deal with the problem of high costs of independent schools. Although these schools enjoy less operating autonomy, the government also requires high quality at affordable fees from these schools' principals.
The policy "Thinkg Schools, Learning Nations" aim to i) explicitly teach critical and creative thinking skills ii) reduce subject content iii) revise assessment modes iv) put greater emphasis on process instead of on outcomes when appraising schools.
The problems of these policies are i) the government controls national examinations, and so set the indicators to assess performance ii) principals from independent schools have not moved from subject to research design currriculum because of the criteria of national exams iii) independent and autonomy schools are actually controlled by the government ideology of order and harmony and competition is not truly free iv) competition leads to schools focusing on outcomes that are relevant for public ranking.
http://www.apecknowledgebank.org/resources/downloads/SingaporeCurriculumReformCreativity.pdf
Singaporean schools have the mandate to foster creativity and innovation to enhance national economic competitiveness in the global economy. This is essential to help the country transition to a knowledge economy.
The three educational policy initiatives are i) Thinking Schools ii) Learning Nations and iii) Masterplan for Information Technology in Education.
Creativity and innovation are fostered by growing marketizantion of education through increased school autonomy and interschool competition.
Independet schools enjoy autonomy and flexibility for i) recruitment ii) deployment iii) reward iv) finance v) management and vi) the curriculum. The problem of these schools are high costs.
"Autonomous schools" were created to deal with the problem of high costs of independent schools. Although these schools enjoy less operating autonomy, the government also requires high quality at affordable fees from these schools' principals.
The policy "Thinkg Schools, Learning Nations" aim to i) explicitly teach critical and creative thinking skills ii) reduce subject content iii) revise assessment modes iv) put greater emphasis on process instead of on outcomes when appraising schools.
The problems of these policies are i) the government controls national examinations, and so set the indicators to assess performance ii) principals from independent schools have not moved from subject to research design currriculum because of the criteria of national exams iii) independent and autonomy schools are actually controlled by the government ideology of order and harmony and competition is not truly free iv) competition leads to schools focusing on outcomes that are relevant for public ranking.
http://www.apecknowledgebank.org/resources/downloads/SingaporeCurriculumReformCreativity.pdf
Government Reform
"In a duty to modernize: Reforming the French civil service" it is outlined the challenges of large scale government reform.
The driving force behind this change is the motto: "do better with less". This change requires structural reforms.
The objectives are i) modernize government ii) improve services for citizens & companies iii) ensure greater recognition for the civil servants iv) promote a culture of results.
Some structural reform initiatives are i) merger agencies ii) implementation of a performance-based funding system for universities iii) acceleration of naturalization process iv) improvements in IT and human resources.
The reason for success are i) commitment of the highest level of the government ii) civil servants understand that in order to truly serve, their duty now is to modernize iii) straightfoward communication to indicate performance iv) visible results quickly v) leveraging communication "champions".
The visions of this reform are i) agile administration ii) resolutely oriented toward citizens and put them at the heart of the administration iii) putting resources into core services - rather than functions iv) better work environment for civil servants v) greater balance between public and private sector skills.
The main difficulties are i) inertia deriving from scope of the program, number of workers, and strength habits and routines ii) communication - limited number of internal channels iii) lack of multidimensional skills - to take initiative, responsibility, and risks.
http://www.mckinseyquarterly.com/Public_Sector/Government_Regulation/A_duty_to_modernize_Reforming_the_French_civil_service_2780
The driving force behind this change is the motto: "do better with less". This change requires structural reforms.
The objectives are i) modernize government ii) improve services for citizens & companies iii) ensure greater recognition for the civil servants iv) promote a culture of results.
Some structural reform initiatives are i) merger agencies ii) implementation of a performance-based funding system for universities iii) acceleration of naturalization process iv) improvements in IT and human resources.
The reason for success are i) commitment of the highest level of the government ii) civil servants understand that in order to truly serve, their duty now is to modernize iii) straightfoward communication to indicate performance iv) visible results quickly v) leveraging communication "champions".
The visions of this reform are i) agile administration ii) resolutely oriented toward citizens and put them at the heart of the administration iii) putting resources into core services - rather than functions iv) better work environment for civil servants v) greater balance between public and private sector skills.
The main difficulties are i) inertia deriving from scope of the program, number of workers, and strength habits and routines ii) communication - limited number of internal channels iii) lack of multidimensional skills - to take initiative, responsibility, and risks.
http://www.mckinseyquarterly.com/Public_Sector/Government_Regulation/A_duty_to_modernize_Reforming_the_French_civil_service_2780
Tax Increase or Exemption?
Hawaii's Senate Ways and Means Committee needs to generate new revenue to offset the projected deficit of $1.3 bi over the next two years.
The first option is 1% increase in GET. This initiative would raise about $500 to $600 mi per year. To protect poor and middle-income residents from the regressive, broad-base tax, there will be a $100 mi in tax credits.
The second alternative is temporarily suspending GET exemption on certain business activities and imposing a 4% GET on them. This adoption would bring in about $200 mi per year.
The governor and the House prefer the second option. The Senate leans toward the first. Chamber of Commerce of Hawaii and Hawaii Association of Realtors are against first alternative and are silent towards the second.
General Excise Tax in Hawaii has not been raised since 1965. Economists praise its broad application and relatively low 4% rate. Critics highlight the pyramid effects and regressive nature of GET.
Tax exemptions on GET aims to address pyramid effect on certain business activities - where tax is applied at more than one point along a chain of related economic transactions.
Tax Foundation of Hawaii claims that both initiatives - GET raise and tax exemption - would damage the economy. It recommends to move special fund revenue into state's general fund and scale back high technology and tax credits to help with deficits.
If exemptions are suspended, construction and aircraft industries, for example, will be highly affected. The extra cost of production will be eventually passed on to consumers and job positions will be lost.
Unions and liberals, however, argue that cuts on social service programs like drug treatment will end up costing government more in the long run. There will be higher costs with health care and criminal justice.
Democrats are in favor of GET increase. They argue that this raise is needed to generate revenue for the budget and a net tax savings will be provided for middle and low-income taxpayers through tax credits.
Republicans oppose new tax increases to balance budget.
http://www.staradvertiser.com/news/hawaiinews/20110407_Business_leaders_protest_tax_increase.html
The first option is 1% increase in GET. This initiative would raise about $500 to $600 mi per year. To protect poor and middle-income residents from the regressive, broad-base tax, there will be a $100 mi in tax credits.
The second alternative is temporarily suspending GET exemption on certain business activities and imposing a 4% GET on them. This adoption would bring in about $200 mi per year.
The governor and the House prefer the second option. The Senate leans toward the first. Chamber of Commerce of Hawaii and Hawaii Association of Realtors are against first alternative and are silent towards the second.
General Excise Tax in Hawaii has not been raised since 1965. Economists praise its broad application and relatively low 4% rate. Critics highlight the pyramid effects and regressive nature of GET.
Tax exemptions on GET aims to address pyramid effect on certain business activities - where tax is applied at more than one point along a chain of related economic transactions.
Tax Foundation of Hawaii claims that both initiatives - GET raise and tax exemption - would damage the economy. It recommends to move special fund revenue into state's general fund and scale back high technology and tax credits to help with deficits.
If exemptions are suspended, construction and aircraft industries, for example, will be highly affected. The extra cost of production will be eventually passed on to consumers and job positions will be lost.
Unions and liberals, however, argue that cuts on social service programs like drug treatment will end up costing government more in the long run. There will be higher costs with health care and criminal justice.
Democrats are in favor of GET increase. They argue that this raise is needed to generate revenue for the budget and a net tax savings will be provided for middle and low-income taxpayers through tax credits.
Republicans oppose new tax increases to balance budget.
http://www.staradvertiser.com/news/hawaiinews/20110407_Business_leaders_protest_tax_increase.html
quarta-feira, 6 de abril de 2011
In-house vs Outsourcing in Public Admnistration
The debate over “Is Privatization a Bad Deal for Cities and States?” highlights the factors that greatly influence the decision of keeping a public service in-house or contracting it out.
The first point to be considered is competition. The more competitive is the private market on the expected outsourced service, the higher are chances of reduced prices and better quality of service provision to taxpayers.
The second issue is measurement. Monitoring and enforcement may turn outsourced public services into more expensive than in-house ones; thus, it is essential to carry out a diligent financial analysis on the costs of keeping track of the advancements of partners.
The third aspect is complexity. Public services that are difficult to quantify and are highly sensitive to democratic values should be kept in-house. Public administrators struggle to guarantee predictability of contracts and check & balance systems when bottom-lines are barely quantifiable or ever-changing.
Competition, measurement, and complexity, therefore, are the three main factors discussed in this the New York Times forum. All of them are directly tied to the final costs of in-house and outsourced public services.
http://www.nytimes.com/roomfordebate/2011/04/03/is-privatization-a-bad-deal-for-cities-and-states?hp
The first point to be considered is competition. The more competitive is the private market on the expected outsourced service, the higher are chances of reduced prices and better quality of service provision to taxpayers.
The second issue is measurement. Monitoring and enforcement may turn outsourced public services into more expensive than in-house ones; thus, it is essential to carry out a diligent financial analysis on the costs of keeping track of the advancements of partners.
The third aspect is complexity. Public services that are difficult to quantify and are highly sensitive to democratic values should be kept in-house. Public administrators struggle to guarantee predictability of contracts and check & balance systems when bottom-lines are barely quantifiable or ever-changing.
Competition, measurement, and complexity, therefore, are the three main factors discussed in this the New York Times forum. All of them are directly tied to the final costs of in-house and outsourced public services.
http://www.nytimes.com/roomfordebate/2011/04/03/is-privatization-a-bad-deal-for-cities-and-states?hp
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