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 Missed Opportunities of Simplification Regarding Personal Income Tax Systems in Hungary

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.

RESEARCH ON THE PERSONAL INCOME TAX APPLICATION TO WAGES IN THE BALTIC STATES

2019 ◽  
Vol 6 ◽  
pp. 654
Author(s):  
Anita Puzule
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Research Study ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
Baltic States ◽  
Tax Reforms ◽  
Tax Systems ◽  
The Baltic

Personal income tax and social insurance contributions must be paid on wages into the budget, the revenue of which most directly affects the changes in the number of persons engaged in the national economy and the increase of the average wage. To be able to evaluate how favourable the personal income tax systems applicable to employees are in the Baltic States, the author compares the factors that affect taxation and the tax burden in Latvia, Lithuania and Estonia, which have experienced tax reforms in the recent years. The aim of the research is to perform a comparative study of the requirements and issues of personal income tax application to wages in Latvia, Lithuania, and Estonia. The monographic, comparative and analytical analysis, logical construction, and grouping methods have been used in the research study. Based on the research study, the author has concluded that despite the similarities in the personal income tax systems, each Baltic state has different normative regulation. The tax burden on Estonian taxpayers relative to wages is lower than that in Lithuania and Latvia.  

scholarly journals Flat-Rate versus Progressive Taxation? An Impact Evaluation Study for the Case of Romania

2019 ◽  
Vol 11 (22) ◽  
pp. 6405
Author(s):  
Madalina Ecaterina Popescu ◽  
Eva Militaru ◽  
Larisa Stanila ◽  
Maria Denisa Vasilescu ◽  
Amalia Cristescu
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax System ◽  
Progressive Taxation ◽  
Flat Rate ◽  
Income Inequalities ◽  
Income Tax Policy ◽  
The Impact

Taking into consideration the recent debates on adopting a progressive tax system over the flat-rate taxation, our paper aims to investigate the impact of a change in the current Romanian personal income tax policy system from the 10% flat-rate tax system to some alternative progressive taxation scenarios. The methodological approach consisted in using the European Union Survey on Income and Living Conditions (EU-SILC) database to micro-simulate the impact upon poverty and income inequality. Through our ex-ante tax policy analysis we bring empirical evidence of a modest, but positive effect upon poverty rate and income inequalities in favor of a progressive taxation system. However, when looking at the government financial implications through the personal income tax budget revenues, we discuss upon the possible trade-off between the benefits on poverty and income inequalities and the possible budgetary drawbacks. Despite the data limitations, this study has the benefit of being among the first attempts to evaluate the impact of a personal income tax policy reform for the case of Romania.

scholarly journals Vienodas gyventojų pajamų mokesčio tarifas

Teisė ◽  
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.

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

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.

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.

Tax Expenditure and Public Expenditure in the UK

1986 ◽  
Vol 15 (1) ◽  
pp. 23-49 ◽  
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.

Taxes

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.

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.

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