The Fiscal Effects of Economic Immigration on Subnational Government Finance in Poland

e-Finanse ◽  
2019 ◽  
Vol 15 (1) ◽  
pp. 45-58
Author(s):  
Marzanna Poniatowicz ◽  
Agnieszka Piekutowska
Keyword(s):  
Social Policy ◽  
Income Tax ◽  
Research Question ◽  
Personal Income Tax ◽  
Government Finance ◽  
Subnational Government ◽  
Migration Research ◽  
The Impact ◽  
High Share

AbstractThe aim of the paper is to analyse the effects of economic immigration on subnational government finance (SNG) in Poland. The goal to achieve is to answer the following research question: what are the fiscal effects of immigration on SNG budget revenues and expenditures. To answer this question, logarithmic models were developed. The analysis refers to the years 2007-2016. In this respect, data from Statistics Poland - referring to budget revenues and expenditures of communes, cities of district status, districts and voivodeships - were used. As far as immigration statistics are concerned, data from the Ministry of Family, Labour and Social Policy were used. The results indicate an increase in both revenues and expenditures of SNG as a result of immigration. Such results can be explained inter alia by the nature of migration - research were focused on economic immigration. Results confirm that the level of employment of foreigners is one of the determinants shaping the fiscal effect of immigration. Moreover, the impact of economic immigration on SNG budget revenues and expenditures depends on the structure of this budget. This explains the differentiated results of the analysis of the impact of immigration on SNG in different countries. The positive correlation between immigration and SNG revenues in Poland can be associated with a high share of subnational governments in personal income tax revenues as this tax is one of the main categories of SNG revenues. Furthermore, results show that the impact of immigration on local government budgets in Poland is modest. This confirms the conclusions drawn by other authors (e.g. Auerbach and Oreopoulos), that in the long term, immigration cannot be considered as a potential instrument for resolving fiscal imbalances.

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 Opportunities for Simplification in the Personal Income Tax Systems of the Visegrad Countries

2020 ◽  
Vol 65 (4) ◽  
pp. 531-553
Author(s):  
Éva Bonifert Szabóné
Keyword(s):  
Income Tax ◽  
Policy Instruments ◽  
Degree Of Approximation ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
It Use ◽  
Tax System ◽  
Tax Systems ◽  
The Impact

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.

scholarly journals THE IMPACT OF TAX POLICY ON ECONOMIC GROWTH, INCOME DISTRIBUTION, AND ALLOCATION OF TAXES

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Income Tax ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Income Groups ◽  
Marginal Tax Rates ◽  
Tax Changes ◽  
The Impact ◽  
Distribution Of Income

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

The Impact of Covid-19 and Lockdown on South African Revenue

2020 ◽  
pp. 1-7
Author(s):  
Mangalani Peter Makananisa ◽  
Keyword(s):  
South African ◽  
Income Tax ◽  
Critical Role ◽  
Value Added ◽  
Fiscal Year ◽  
Personal Income Tax ◽  
State Revenue ◽  
Regression Parameters ◽  
Sample Data ◽  
The Impact

The state revenue plays a critical role in the running of its departments and plays a significant role in the economy. The study investigates the impact of COVID-19 and the lockdown on the South African revenue collections. The study focuses on the major taxes Personal Income Tax (PIT), Corporate Income Tax (CIT) and Value Added Tax (VAT). Over the fiscal year 2008/09 to 2019/20 the three taxes contribute around 80% of the Total Tax (TTAX). The sample data was from quarter 1, 2014 to quarter 2, 2020 (50 observations) obtained with quarter 2 of 2020 carrying the impact of the pandemic. The SARIMA and Holt-Winters models were used to forecast the continuation of the historical patterns in two scenarios, (1.) Without the impact of the COVID-19 pandemic (No shock), and (2.) with the impact of COVID-19 and lockdown (with a shock) on the revenue collections. The R-statistical software was used to obtain the regression parameters and for forecasting purposes. On “average”, the impact of the pandemic is expected to reduce total revenue by around R310.6bn to R1, 127 trillion (on the interval R1, 093 – R1, 162 trillion) from the original estimates of R1, 438 trillion for the fiscal year 2020/21. The average forecast for PIT, CIT and VAT due to the impact of the pandemic is R532.9billion, R172.6billion and R320.9billion respectively. The study further encourages model revision as more data impacted by the pandemic become available

scholarly journals Personal Income Tax and Social Security Coordination in Cross-Border Employment – a Case Study of the Czech Republic and Denmark

2019 ◽  
Vol 21 (1) ◽  
pp. 23-41 ◽  
Author(s):  
Jana Tepperová
Keyword(s):  
Social Security ◽  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
The Czech Republic ◽  
Cross Border ◽  
Social Security Contributions ◽  
The Impact ◽  
The Eu

Neither personal income tax nor social security is harmonised within the EU. Social security systems are coordinated at EU level whereas personal income tax in cross-border situations is governed by respective double tax treaties. In most EU countries, personal income tax and social security contributions are relatively distinct payments. This article examines problems surrounding the interaction between personal income tax and social security contributions on a national and international level based on a case study of cross-border employment between the Czech Republic and Denmark. As the Czech and the Danish systems are designed very differently, the case study allows for clear illustration of the issue at-hand. The aim is to identify the elements influencing the impact of different coordination rules in personal income tax and social security contributions, illustrate and discuss the potential problems of such mismatches between the two payments. The impact on final payments differs, not only due to the different levels of coordination of the payments, but also due to the different designs of the two national systems. Thus, it would be very difficult to address all the scenarios with a one size fits all measure for all the EU Member States that would overcome the differences in this coordination.

ENDPOINTS FOR RELATIVE EFFECTIVENESS ASSESSMENT (REA) OF PHARMACEUTICALS

2014 ◽  
Vol 30 (5) ◽  
pp. 508-513 ◽  
Author(s):  
Mira Pavlovic ◽  
Conor Teljeur ◽  
Beate Wieseler ◽  
Marianne Klemp ◽  
Irina Cleemput ◽  
...  
Keyword(s):  
Guideline Development ◽  
Research Question ◽  
Relative Effectiveness ◽  
Clinical Endpoints ◽  
Related Quality ◽  
Health Related ◽  
Effectiveness Assessment ◽  
The Impact ◽  
Methodological Guidelines

Objectives: Clinical endpoints are defined as valid measures of clinical benefit or harm due to treatment, that describe the impact of treatment on how a patient feels, functions, and survives. The choice of endpoints and the manner in which they are reported have a major impact on the relative effectiveness assessment (REA) of pharmaceuticals. The aim of this article is to describe the guideline development process and the key findings that set a framework for appropriate use of endpoints in REAs in Europe.Methods: A multi-health technology assessment (HTA)-agency collaborative process in EUnetHTA JA1 was used to scope, draft, and finalize methodological guidelines for REA in Europe.Results: Patient-relevant clinical endpoints can be broadly categorized into: mortality, morbidity and health-related quality of life. A clinical endpoint is a main symptom or sign of a disease that is clinically relevant, valid, reproducible and responsive to change. Preference is for long-term or final endpoints whenever possible. Surrogate endpoints may be used when there is compelling evidence of a clear and consistent correlation of treatment effects on the surrogate and final outcome of interest.Conclusions: The relevance and hierarchy of the different types of clinical endpoints depend on the research question, disease, and the treatment investigated. Not only the primary endpoint, but also other relevant endpoints are assessed in comparison to adequate comparator(s). This simultaneous assessment of all relevant endpoints is a hallmark of REA.

scholarly journals Personal income tax reform in Latvia: assessment of effect

2019 ◽  
Author(s):  
Larisa Bule ◽  
Līga Leitāne ◽  
Kristīne Rozīte
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Revenue ◽  
Normative Concepts ◽  
The Impact ◽  
Practical Implications ◽  
Income Tax Reform

Personal income tax (PIT) policy in Latvia has been changed significantly in 2018 with the aim to reduce the tax burden and increase the income of working population by amending progressive tax rates and increasing the non-taxable minimum and minimum wage. Purpose − the aim of this study is to estimate the impact of PIT reform by assessing the effect of implementation of non-taxable minimum, deductions and substantiated spending on the dynamics of income and tax administration efficiency. Research methodology − PIT theoretic and normative concepts have been analyzed; unpublished data on actual wages in 2015−2018 provided by Latvian State Revenue Service and State Social Insurance Agency have been estimated. Findings − the main conclusion of this study is that the aim of the reform has not been achieved: income inequality hasn’t been reduced, an increase of income has been irrelevant, the gains from the reform have become unobtainable for the most unprotected groups because of the insufficient level of income. The implementation of the differentiated non-taxable minimum has generated PIT debts and higher administrative burden. Practical implications − the study may be implemented in case of progressive PIT for the reassessment of the tax framework and its future development. Originality/Value − this study is original, the actual effect of PIT reform in Latvia previously hasn’t been analyzed.

scholarly journals Exemption of Fiscal Exit Tax: Its Impact on International Flights and Tax Revenue

2015 ◽  
Vol 16 (1) ◽  
pp. 22
Author(s):  
Joko Mariyono
Keyword(s):  
Income Tax ◽  
Time Series Data ◽  
Personal Income ◽  
Series Data ◽  
Government Revenue ◽  
Personal Income Tax ◽  
Econometric Methods ◽  
Asean Member ◽  
The Government ◽  
The Impact

Fiscal tariff is considered as personal income tax, collected in advance when adult people who have been staying in Indonesia for more than 183 days go overseas. The magnitude of tariff was sometime much greater than the airfare itself, particularly for international flight to ASEAN member countries. This study aims to measure the impact of elimination of fiscal tariff applied to international flight passenger departing from Indonesia. Potential loss in government revenue from income tax and number of international passengers were analyzed. This study used descriptive and econometric methods. Annual and monthly time series data were collected for publication of the Indonesian Statistical Agency and Central Bank of Indonesia during the periods 2008-2012. The results show that the elimination of fiscal tariff did not affect the government revenue resulting from personal income tax. The impact of tariff elimination was to increase the rate in number of passengers going overseas.

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