scholarly journals ‘Tax the rich’? The financial crisis, fiscal fairness, and progressive income taxation

2019 ◽  
Vol 11 (3) ◽  
pp. 319-336 ◽  
Author(s):  
Julian Limberg
Keyword(s):  
Financial Crisis ◽  
Income Tax ◽  
Income Taxation ◽  
Personal Income Tax ◽  
Difference In Differences ◽  
Data Set ◽  
Tax Progressivity ◽  
Percentage Points ◽  
The Rich ◽  
Progressive Income Taxation

AbstractHas the financial crisis influenced taxes on the rich? In this article, I argue that crisis countries have raised income tax progressivity because of fiscal fairness considerations. I test this claim by analysing a new data set on top marginal personal income tax (PIT) rates for 122 countries from 2006 to 2014, applying matching methods and a difference-in-differences design. The results show that countries with a financial crisis have increased top PIT rates by 4 percentage points. Furthermore, rising public debt only leads to higher top PIT rates when it is crisis-induced. These findings demonstrate that notions of fiscal fairness can still shape progressive taxation in the 21st century.

PROGRESSIVE INCOME TAXATION: FOREIGN EXPERIENCE AND OPPORTUNITIES FOR FURTHER DEVELOPMENT IN RUSSIA

2021 ◽  
Vol 4 (4) ◽  
pp. 54-58
Author(s):  
E. A. LEPESHKINA ◽  
Keyword(s):  
Income Tax ◽  
Developed Countries ◽  
Important Change ◽  
Research Topic ◽  
Personal Income ◽  
Income Taxation ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Further Development ◽  
Progressive Income Taxation

The relevance of the research topic is due to the fact that in 2021 there was an important change in wages-the introduction of a progressive personal income tax rate. This system of income taxation is just be-ginning to be implemented and, of course, will be subject to further changes. The state has an important task to carry out this process consistently, taking into account the peculiarities of the country and relying on the successful experience of developed countries. The article reveals the concepts of progressive and propor-tional taxation, considers the views of supporters of these types of taxation systems, examines foreign expe-rience in applying the progressive personal income tax rate, and makes suggestions for improving the existing system.

Earnings inequality and tax progressivity in Slovenia, 1991–2009

2013 ◽  
Vol 63 (4) ◽  
pp. 405-421 ◽  
Author(s):  
Tine Stanovnik ◽  
Miroslav Verbič
Keyword(s):  
Income Tax ◽  
Earnings Inequality ◽  
Personal Income ◽  
Early Years ◽  
Personal Income Tax ◽  
Tax Progressivity ◽  
Tax Legislation ◽  
Institutional Settings ◽  
Social Contributions ◽  
Minimum Wage Legislation

This paper analyses the distribution of employee earnings in Slovenia in the period 1991–2009. The analysis is based on large samples from the personal income tax (PIT) files. According to the Gini coefficient, increases in earnings inequality were moderate; however, relatively large increases in the shares accruing to the top 5% and top 1% of employees did occur. Inequality of employees’ after-tax earnings (i.e. net of employee social contributions and PIT) remained fairly stable in this time period, due to the increasing progressivity of PIT, as shown by the Kakwani index of progressivity. Increases in progressivity of the personal income tax came in leaps, following the introduction of new income tax legislation. Institutional settings and the introduction of minimum wage legislation in 1995 also appear to havemoderated inequality increases, which were quite large in the early years of the transition.

scholarly journals Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

2021 ◽  
Vol 7 (2) ◽  
pp. 134-145
Author(s):  
M. Krajňák ◽  
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Effective Tax Rate ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Progressivity ◽  
The Impact ◽  
Income Tax Reform

Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.

scholarly journals Income taxation of self-employed attorney and peculiarities of single social contribution payment

1970 ◽  
pp. 112-116
Author(s):  
Olena Hedziuk
Keyword(s):  
Income Tax ◽  
Legal Regulation ◽  
Personal Income ◽  
Income Taxation ◽  
Professional Activity ◽  
Tax Law ◽  
Net Income ◽  
Personal Income Tax ◽  
Taxable Income ◽  
Social Contribution

 The paper is designed to present the legal regulation of income taxation of self-employed attorney. For tax purposes, the attorney who carries out the activity is an individually self-employed person, namely, a person who pursues an independent professional activity.      An individual who intends to pursue independent professional activity is obliged to register with the supervisory authorities at their place of residence as self-employed persons. If a person is registered as an entrepreneur and at the same time this person carries out an independent professional activity, such an individual is accounted for the controlling bodies as an entrepreneur with a sign of pursuing the independent professional activity.       Income received during the calendar year from conducting independent professional activity is taxed on the personal income tax at the rate of 18%. Taxable income is the cumulative net income, that is the difference between the income and the documented expenses required to pursue a certain type of independent professional activity. Individuals engaged in an independent professional activity are obliged to keep records of income and expenses from such activity.       In addition to the personal income tax, attorneys also pay a military levy and a single social contribution.      Discussion issues in the enforcement of tax law were distinguished: the issue of taking into account expenses in determining taxable income for taxation of income received by an attorney, as well as problem of payment of the single social contribution in the case of combining business activity and independent professional activity. In this situation, the tax authorities believe that the taxpayer must pay a single social contribution twice as an entrepreneur and as a person who provides independent professional activity. Courts often support taxpayers and confirm that a person should only pay a single social contribution as an entrepreneur. Tax authorities’ explanations remain unchanged.     To avoid double taxation and to ensure the implementation of the principles of tax law, in our opinion, this issue needs attention from the tax authorities and an up-to-date analysis tax legislation.

scholarly journals EUROPEAN PRIORITIES FOR PERSONAL INCOME TAXATION

2020 ◽  
pp. 77-87
Author(s):  
Fedir TKACHYK ◽  
Victoriia OSTAPCHUK
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
European Countries ◽  
Income Taxation ◽  
Social Aspects ◽  
Tax Rates ◽  
The European Union ◽  
Personal Income Tax ◽  
Important Place ◽  
Personal Income Taxation

Introduction. In the current conditions of globalization of socio-economic development and formation of a new financial civilization, social aspects of tax policy take a important place. The system of taxation of income of citizens in Ukraine today is not fully coping with the performance of their functions. The experience of developed European countries on the formation of an effective mechanism of taxation of personal income will contribute to the establishment of the newest social and fiscal-oriented paradigm of taxation of citizens in Ukraine. The increased interest in the procedures for administering the personal income tax is also explained by the fact that this tax is one of the main sources of income to the budget of Ukraine. The purpose is to determine the peculiarities of taxation of personal income tax in Ukraine, to find out the common and different features tax system in Ukraine and European countries, to systematize recommendations on improving the mechanism of taxation of personal income. Results. The international typology of personal income tax systems is given. The general features of personal income taxation and mechanisms of application of personal income tax rates in some countries of the European Union are considered. It is argued that the implementation of the European tax experience will facilitate a faster transition to a new and effective system of personal income taxation in Ukraine. To improve personal income taxation in Ukraine, it is necessary to revise personal income tax rates, increase the amount of tax-free minimum incomes, ensure the full functioning of electronic declaration of personal incomes, optimize concessional policies, increase tax literacy and tax culture. Prospects. Further research will focus on the social aspects of taxing citizens' income in terms of differentiation of tax rates, the logic of using preferences in taxing personal income, the introduction of an effective threshold of the non-taxable minimum income, promoting the right to tax rebates, etc.

scholarly journals FISCAL AND SOCIAL DETERMINANTS OF PERSONAL INCOME TAXATION

2021 ◽  
pp. 163-173
Author(s):  
Volodymyr UHRYN
Keyword(s):  
Income Tax ◽  
State Regulation ◽  
Personal Income ◽  
Income Taxation ◽  
Future Research ◽  
Social Aspect ◽  
Personal Income Tax ◽  
State Budgets ◽  
Fiscal Efficiency ◽  
Personal Income Taxation

Introduction. Direct taxes are an important financial regulator of socio-economic processes, they are one of the most important sources of budgeting and an essential tool of state regulation. The personal income tax is the main tax through which social policy is implemented in the developed countries of the world. The advantages of this tax include its social justice and fiscal efficiency, as it is able to make the level of taxation directly dependent on the amount of income of taxpayers. In addition, progressive tax rates and benefits can reduce the tax burden on the poor and increase it on high-income earners. The purpose of the article is to considerate the theoretical and practical aspects of administration of the personal income tax in the conditions of reforming of fiscal policy of Ukraine, systematization of directions of improvement of collecting of the personal income tax to local and state budgets. Methods. Methods of dialectical analysis and synthesis, deduction, induction logical generalization, comparison and formalization are used in the article. Results. The article is devoted to the study of the essence and role of personal income tax administration. Peculiarities of citizens’ income formation as an object of taxation are considered. Monitoring and analysis of indicators of personal income tax to local and state budgets was carried out. The growth rates of nominal revenues of personal income tax and military duty, real and nominal wages are studied. It was found that the main factors reducing the level of fiscal efficiency of personal income tax in Ukraine are the shadowing of incomes and the outflow of labor, including skilled personnel. Ukraine’s tax policy for the last five years is fiscally oriented and does not take into account the social aspect of personal income taxation. As a result of the research, the directions of increasing the efficiency of personal income taxation in Ukraine based on foreign experience are systematized. Prospects. The current model of personal income tax does not sufficiently perform a socioeconomic function, does not provide a socially equitable distribution of income between different segments of the population. In recent years, the fiscal significance of the personal income tax has remained, but the system of personal income taxation requires the application of progressive rates. Therefore, promising areas of future research should be the development and improvement of the mechanism of personal income taxation in the context of ensuring their socio-economic interests.

scholarly journals Personal Income Taxation Determinants in Federation of Bosnia and Herzegovina

2019 ◽  
Vol 10 (1) ◽  
pp. 153-163
Author(s):  
Irena Palić ◽  
Sabina Hodžić ◽  
Ksenija Dumičić
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Error Correction ◽  
Bosnia And Herzegovina ◽  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Personal Income Tax ◽  
The Impact ◽  
Personal Income Taxation

Abstract Background: In recent years’ income inequality has been an economic issue. The primary instrument for redistributing income is personal income tax. However, based on economic theory income inequality concerns indicators such as wages, transfer payments, taxes, social security contributions, and geographical mobility. Objectives: The objective of this paper is to examine the impact of certain labor market indicators on personal income taxation in Federation of Bosnia and Herzegovina (FB&H). Methods/Approach: Since personal income taxation consists of a very broad definition and for the purpose of this research only, income from dependent (employment) activity is observed. The econometric analysis is conducted using error correction modeling, as well as forecast errors variance decomposition. Results: The error correction model is estimated, and the cointegrating equation indicates that monthly wage and number of employees statistically significantly positively affect personal income taxes in FB&H in the long-run. After two years, the selected labor market indicators explain a considerable part of forecasting error variance of personal income tax revenues. Conclusions: The implementation of reforms in the labor market and tax policies of the FB&H is suggested. In order to achieve necessary reforms, efficient governance and general stable political environment are required.

The mechanism of personal income taxation and its prospects in Ukraine

2021 ◽  
Vol 92 (1) ◽  
pp. 33-42
Author(s):  
Yaroslav Yarema
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Budget ◽  
Low Incomes ◽  
The Impact ◽  
Personal Income Taxation ◽  
Current Mechanism

The article analyses the current mechanism of personal income taxation in Ukraine, examining the impact of its individual elements on total revenues from personal income tax. The analysis of revenue contributions from personal income taxation to the consolidated state budget and local budgets indicates that the personal income tax remains the most important sources of revenue. In the structure of personal income tax revenues, wages are the main source of taxable income. The author analyses the mechanism of taxation for natural persons (businessmen) and tax receipts flowing to local budgets from incomes from business activity and highlights its shortcomings. In this context, he proposes introducing progressive tax rates, which will make it possible to shift the tax burden from individuals with low incomes to those who earn higher incomes.

scholarly journals Taxes and the Choice of Organizational Form in Late Nineteenth Century Japan

2017 ◽  
Vol 77 (2) ◽  
pp. 440-472 ◽  
Author(s):  
Kazuki Onji ◽  
John P. Tang
Keyword(s):  
Income Tax ◽  
Organizational Form ◽  
Corporate Income Tax ◽  
Late Nineteenth Century ◽  
Personal Income Tax ◽  
Taxation Policy ◽  
Percentage Points ◽  
Short Run ◽  
Late Nineteenth ◽  
Firm Data

How do changes to taxation policy affect the organizational choices of firms? Using historical firm data constructed from Japanese corporate genealogies, we examine the short-run impact of introducing a personal income tax (PIT) in 1887 on tax-motivated incorporation. Between 1880 and 1892, we find that the introduction of PIT increased the share of incorporated firms by more than 3 percentage points, indicating firms chose their organizational structure to avoid new taxation. Furthermore, our results suggest that a corporate income tax may have acted as a backstop to maintain revenue collected through PIT.

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