scholarly journals Effects of Bracket Creep and Tax Reform on Average Personal Income Tax Burden in Germany

2015 ◽  
Author(s):  
Chang Woon Nam ◽  
Christoph Zeiner
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax

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 Trends in Personal Income Tax Progression in OECD Countries in the Context of Income Redistribution

2017 ◽  
Vol 4 (324) ◽  
Author(s):  
Małgorzata Mazurek-Chwiejczak
Keyword(s):  
Income Tax ◽  
Income Redistribution ◽  
Oecd Countries ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
Historical Trends ◽  
Income Disparities ◽  
Redistribution Policy ◽  
Different Levels

In recent years there has been an evident, widespread increase in income disparities in OECD countries. Progressive Personal Income Tax, which enables adjustment of the tax burden to individual’s capacity to pay, is one of the fundamental instruments used in redistribution policy. The aim of the paper is comparative analysis of the level of Personal Income Tax (PIT) progression in OECD countries and identification of trends in progression in the context of income redistribution. The article discusses the progressivity level of PIT in OECD countries measured by the differences in the burden at different levels of income. The cross-country and historical trends in the statutory PIT rates, the number of tax brackets and the provisions which exempt an initial level of income from tax burden are analysed and graphically illustrated.

Prospective Directions of Personal Income Changes in the Context of Changing Legislation in the Russian Federation

2020 ◽  
Vol 26 (6) ◽  
pp. 649-655
Author(s):  
R. N. Berlizev
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Tax Burden ◽  
Rate Model ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Legislation ◽  
Dividend Payments ◽  
Progressive Tax ◽  
Definition Of

The topic of the study is relevant in light of changes in tax legislation pertaining to the current personal income tax system. From January 1, 2021, the personal income tax rate will change from 13 to 15 percent for incomes exceeding 5 million rubles (applies only to the amount over 5 million), which is basically the first step in the transition from a flat personal income tax rate to a progressive one.Aim. The presented study proposes and substantiates by calculation a new approach to calculating personal income tax based on a progressive rate.Materials and methods. This study uses generalization, synthesis, and systematization to analyze the risks and opportunities of the transition from the current personal income tax rate to progressive taxation.Results. The authors determine that income received by individuals through dividend payments is substantial, while the number of individuals who receive dividends is relatively small, and conclude that income received in the form of dividends can be classified as the so-called “excess income”, which is not defined at the legislative level. Therefore, now it is necessary to introduce and develop a definition of “excess income” in tax legislation and to draw a distinction between the concepts of “dividends” and “remuneration”. It is found by calculation that a relatively small increase in the tax burden on the income of dividend-receiving taxpayers would provide additional funds for the budget system. That said, changes to the system of taxes on personal dividends should be made with allowance for the introduction of a progressive tax rate. The proposal to completely abandon the flat personal income tax rate by introducing fundamental changes to tax rates that would affect almost any category of the population is substantiated. As a result of the proposed progressive tax rate model, budget revenues will increase, tax burden on individuals with the lowest level of income will diminish, and taxes imposed on citizens with income above the minimum level will remain the same.Conclusions. As a result of the proposed progressive tax rate model, budget revenues will increase, tax burden on individuals with the lowest level of income will diminish, and taxes imposed on the middle class will remain the same.

Taxpayer Response to Greater Progressivity: Evidence from Personal Income Tax Reform in Uganda

2022 ◽  
Author(s):  
Maria Jouste ◽  
Tina Kaidu ◽  
Joseph Okello ◽  
Jukka Pirttilä ◽  
Pia Rattenhuber
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Income Tax Reform

INCREASE IN THE TAX BURDEN OF INDIVIDUALS IN THE RUSSIAN FEDERATION

2021 ◽  
Vol 4 (4) ◽  
pp. 86-88
Author(s):  
A. A. AKSENOVA ◽  
Keyword(s):  
Russian Federation ◽  
Income Tax ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
The Russian Federation

The article deals with the increase in the tax burden of individuals due to the expansion of taxable objects and the introduction of a new increased rate on personal income tax, on incomes exceeding 5 million rubles.

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