THE EFFECT OF CHANGES IN PERSONAL INCOME TAX SYSTEM ON TAX BURDEN IN HUNGARY, BETWEEN 2002 AND 2011

Due to the numerous factors that can influence the impact of the tax system and redistribution, there is no single correct answer to the question of which composition of economic policy instruments needs to be applied to achieve a desired redistributive effect. The general aim of the study is to investigate in relation to the quantifiable parameters of income tax systems, whether the consideration of the aspects of fairness and justice does have an excessively negative effect on the simplicity of tax systems. The study investigates the possibilities of simplifying the personal income tax system’s composition in some Central and Eastern European countries, while tax burden curves of the system remain as constant as possible. To this end, the study sets up a theoretical, simplified tax model, the parameters of which are determined by a computer program, in order to generate tax burden curves corresponding most closely to the curves of the real tax system. Based on the analysis, it can be established that the theoretical system – in some cases with restrictions – provides a good approximation to the tax burden curves of the investigated countries. The chosen simple model has a good degree of approximation to a real system that does not have significant breakpoints in its tax burden curves, nor does it use a taxation method that fundamentally modifies the system (e.g., splitting). Practical examples help to understand that a complex personal income tax system in a given country is not necessarily the only possible solution to achieve a given tax burden curve, the function may be reproduced with a good approximation constructed from simpler basic elements.

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Missed Opportunities of Simplification Regarding Personal Income Tax Systems in Hungary

Pénzügyi Szemle = Public Finance Quarterly ◽

10.35551/pfq_2021_3_2 ◽

2021 ◽

Vol 66 (3) ◽

pp. 337-358

Author(s):

Éva Szabóné Bonifert

Keyword(s):

Income Tax ◽

Current System ◽

Personal Income ◽

Tax Burden ◽

Personal Income Tax ◽

Tax System ◽

Missed Opportunities ◽

Distant Future ◽

Theoretical System ◽

Tax Systems

The paper investigates – considering also the simplified basic elements of the current system – the possibilities of simplifying the Hungarian personal income tax system’s composition in the previous years, while tax burden curves of the system change as little as possible. Tax burden curves of the theoretical, simplified tax model established for this investigation are fitted to the curves of the real tax system, while the parameters of the theoretical model are determined by a computer program. Since the modern Hungarian income taxation had been introduced, the system has long been subject to a wide variety of changes concerning the basic elements examined in the study. Selecting some of these years of changes, the study analyses the possibilities for simplification in order to ask the question again: whether it is necessary to maintain complex tax systems at all costs, possibly in favour of achieving the most equitable income tax system. The results of the investigation indicate that our simpler theoretical system could have replaced with a good approximation the elements of Hungarian tax systems of previous years with multi-bracket and sometimes complicated tax credit, which even applied more tax benefit elements compared to the theoretical system. On this basis, it may be an important aspect also for the more distant future that in the course of developing personal income tax systems, the sophisticated equity of the systems should be observed through the mathematical spectacles of simplification options.

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Vienodas gyventojų pajamų mokesčio tarifas

Teisė ◽

10.15388/teise.2008.0.340 ◽

2008 ◽

Vol 68 ◽

pp. 65-84

Author(s):

Andrius Paulauskas

Keyword(s):

Income Tax ◽

Personal Income ◽

Tax Burden ◽

Personal Income Tax ◽

Tax System ◽

Taxation System ◽

Budget Revenue

Straipsnyje analizuojama proporcinė gyventojų pajamų apmokestinimo sistema, ekonominis jos pagrindas, kaita, įtaka biudžeto pajamos. Kaip tokios sistemos pavyzdys tiriama Lietuvos gyventojų pajamų mokesčio sistema, šios sistemos trūkumai ir pateikiami tobulinimo pasiūlymai. Nagrinėjamas mokesčių naštos individualią veiklą vykdantiems ir pagal darbo sutartis dirbantiems asmenims derinimo poreikis, siekiant suvienodinti iš esmės analogišką veiklą vykdančių asmenų apmokestinimą. Taip pat keliamas esamos apmokestinimo sistemos keitimo panaikinant dalį mokesčių išimčių ir lengvatų klausimas. In this article proportional personal income tax system, its economical background, evolution, impact to budget revenue is analysed. As example of such system Lithuanian personal income tax system is on research, its disadvantages and proposals to improve it. The demand to balance tax burden of self employment and employed persons is examined, aiming to unify taxation of individuals engaged basically in analogous activity. Also question to amend present taxation system canceling part of tax exceptions and exemptions is under consideration.

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Unified Reporting on Personal Income Tax and Unified Social Tax: Simplification or Additional Complication of Conditions for Business Operation?

Accounting and Finance ◽

10.33146/2307-9878-2020-3(89)-48-54 ◽

2020 ◽

pp. 48-54

Author(s):

Andrii Boichuk ◽

Keyword(s):

Income Tax ◽

Personal Income ◽

Effective Control ◽

Personal Income Tax ◽

Tax System ◽

Doing Business ◽

Tax Simplification ◽

Processing Information ◽

Tax Payments ◽

The Military

In the context of the reform of the tax system and the accounting and reporting system, as well as the integration of Ukraine with the European Community, the issue of simplifying the conditions for doing business, building an effective and understandable system for administering taxes and other duties acquire special significance. One of the important aspects of reforming the tax system of Ukraine is the introduction of unified reporting on personal income tax and unified social tax. The purpose of the article is to identify the positive and negative aspects of the process of reforming the reporting on personal income tax and unified social tax and scientifically substantiate the structure of such unified reporting. The existing forms of reporting on personal income tax and unified social tax, proposed by government agencies, were analyzed. In addition, the unified reporting models from these taxes proposed by scientists were critically assessed by the author. It was found that such indicators as the presence of Ukrainian citizenship, gender and the sign of a new job, do not participate in the process of monitoring the completeness of tax payments. Therefore, it is impractical to fill in these indicators for each employee, and it is enough to submit the total number and structure of these indicators on the reporting title page. The opposite situation exists with the military tax, which is advisable to display for each employee in the reporting for more effective control over its accrual and payment. The author has improved the structure of unified reporting on personal income tax and unified social tax, which will reduce the time spent on filling out such reports, increase the efficiency of control by the fiscal authorities and simplify the process of processing unified reporting data. The main advantages of the proposed form of unified reporting are: significant reduction in the number of indicators; simplicity and compactness; personalized registration of military tax; ease of filling and processing information.

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Tax Expenditure and Public Expenditure in the UK

Journal of Social Policy ◽

10.1017/s0047279400023096 ◽

1986 ◽

Vol 15 (1) ◽

pp. 23-49 ◽

Cited By ~ 8

Author(s):

Margaret Wilkinson

Keyword(s):

Income Tax ◽

Public Expenditure ◽

Personal Income ◽

Public Expenditures ◽

Personal Income Tax ◽

Tax System ◽

Tax Expenditures ◽

Tax Expenditure ◽

Public Revenue ◽

The Uk

ABSTRACT‘Tax expenditures’ are public revenue losses which result from special allowances and reliefs given to various categories of taxpayer for reasons of economic and social policy. In 1983/4 tax expenditures in the personal income tax system cost nearly £11 billion which was equal to 35 per cent of revenue from personal income tax or 9 per cent of total public expenditure. This paper assesses their significance in the context of public expenditure and tax policy. It identifies those allowances and reliefs in the personal income tax system which may be regarded as tax expenditures, evaluates them and compares their cost with direct expenditures in similar areas. Many tax expenditures are inequitable and inefficient; and they are difficult for governments to control. If they were reduced some public expenditures could be protected from cuts, or the general burden of income tax could be reduced.

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Taxes

Texas vs. California ◽

10.1093/oso/9780190077365.003.0009 ◽

2020 ◽

pp. 146-163

Author(s):

Kenneth P. Miller

Keyword(s):

Economic Growth ◽

Income Tax ◽

The State ◽

Personal Income ◽

Tax Burden ◽

Government Programs ◽

Tax System ◽

Revenue Source ◽

Adequate Funding ◽

State Tax

This chapter places Texas and California on the national spectrum of state tax policy and shows how they occupy opposite poles. Texas has maintained a low overall tax burden and is one of a small number of states that has steadfastly refused to adopt an income tax. Advocates of the Texas tax system argue that it protects personal freedom, promotes economic growth, and provides the state a crucial advantage in attracting new residents and businesses. Critics say the system is regressive and fails to produce adequate funding for government programs. By comparison, California has embraced a far higher tax burden and a progressive tax structure. Its largest revenue source, the personal income tax, is the highest in the nation. Advocates say California’s tax system generates needed funding for government programs and appropriately shifts the tax burden to those most able to pay, while critics say these taxes are excessive and help drive residents and businesses out of the state.

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Feasibility of Financing a Basic Income

Basic Income Studies ◽

10.1515/bis-2014-0005 ◽

2014 ◽

Vol 9 (1-2) ◽

Cited By ~ 6

Author(s):

Jordi Arcarons ◽

Daniel Raventos Pañella ◽

Lluís Torrens Mèlich

Keyword(s):

Income Tax ◽

Personal Income ◽

Basic Income ◽

Microsimulation Model ◽

Personal Income Tax ◽

Tax System

AbstractThis article describes the main results obtained from a microsimulation model designed by the authors in order to analyze the possibilities of financing a Basic Income (BI) in the territory of Catalonia on the basis of information provided by the IRPF (personal income tax) system. The BI proposal guarantees the material existence of the population and is not only desirable but also feasible.

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