Project On Land Value Tax - 1319 Words

This semester I have been doing research about property tax. I extend my own synthetic research in the summer of 2016 and the experiment work by Dr. Duke and Tianhang Gao in October, 2016. Since I was participating in the experiment of land value tax, I have had basic knowledge about the nature and functionality of land value tax. Therefore, my initial goal for this independent study is to use Matlab to build a simulated environment in which property owners make decisions about land improvement under different property tax regimes, land value tax and uniform property tax. The simulation test is similar with the experiment designed and conducted in previous; however, the main difference between this simulation and the previous experiment is†¦show more content†¦The price of both improvement choice and other consumption is 1 temporarily in order to make the simulation easy to understand. The government would collect up to the tax cap, TaxCap = $700,000 dollars, as tax revenue, and the exceed amount of tax collected, which is tax return, TaxR, would be distributed to all households evenly as a part of household income(1). TaxRit = ÃŽ £ Taxit - TaxCap The tax collected from households prior to redistribution is based a tax revenue function consisting of the current year’s land value, LVit, land tax rate, TaoLL, current year’s improvement value, IVit and improvement tax rate, TaoIV(2). (2) Taxit = LVit * TaoLL + IVit * TaoIV We assume that every household tend to maximize their money utility, MUit. Therefore, households would like to find the first order condition of their own money utility function and choose the optimal units of improvement(3). (3) MUit = (Incomeit * rt – xit * pxt)ÃŽ ± * xit(1-ÃŽ ±) + ÏÆ' * IVit-1 s.t. pxt * xit + pyt * yit = Iit – Taxit-1 + TaxRit-1 Monte Carlo and heterogeneity The second part of my study isShow MoreRelatedCh8 Bethesda Mining Comapny1004 Words   |  5 PagesBethesda Mining Company To be able to analyze the project, we need to calculate the project’s NPV, IRR, MIRR, Payback Period, and Profitability Index. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales. Each year, the company will sell 600,000 tons under contract, and the rest on the spot market. 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