Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
Labor Income Taxation in Open Economies : Current Trends and Options for Reforms. / Sokolovska, Olena.
PROCEEDINGS OF THE 22ND INTERNATIONAL CONFERENCE CURRENT TRENDS IN PUBLIC SECTOR RESEARCH. ed. / P Dvorakova; B Baisa. Masaryk University Press, 2018. p. 187-194 (Current Trends in Public Sector Research).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
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TY - GEN
T1 - Labor Income Taxation in Open Economies
AU - Sokolovska, Olena
PY - 2018
Y1 - 2018
N2 - We analyze both the theoretical framework of labor taxation in the open economy and important current reforms of labor taxation in countries worldwide including the introduction of "social VAT". The current tax theory considers the reforms of labor income taxation related to the shifting of taxation from more mobile tax bases to the less mobile ones, taking into consideration the reduction of tax rates with simultaneous broadening of the tax base. Such a reform is intended to reduce the distortion effects of taxation, and, as a consequence, to reduce the tax burden on labor. The empirical section includes analysis of indicators of labor income taxation in OECD countries. We calculated the progressivity index of overall tax wedge and its components - personal income tax, employer's and employee's social security contributions. The results enabled cross-country comparisons: we found that in a most OECD members both employees' and employers' social security contributions systems are regressive or flat, while personal income tax systems are progressive in all countries except Hungary with flat tax schedule. Moreover, in OECD countries with highest GDP per capita the employees bear average labor tax burden with simultaneously low employers' social security contributions rates.
AB - We analyze both the theoretical framework of labor taxation in the open economy and important current reforms of labor taxation in countries worldwide including the introduction of "social VAT". The current tax theory considers the reforms of labor income taxation related to the shifting of taxation from more mobile tax bases to the less mobile ones, taking into consideration the reduction of tax rates with simultaneous broadening of the tax base. Such a reform is intended to reduce the distortion effects of taxation, and, as a consequence, to reduce the tax burden on labor. The empirical section includes analysis of indicators of labor income taxation in OECD countries. We calculated the progressivity index of overall tax wedge and its components - personal income tax, employer's and employee's social security contributions. The results enabled cross-country comparisons: we found that in a most OECD members both employees' and employers' social security contributions systems are regressive or flat, while personal income tax systems are progressive in all countries except Hungary with flat tax schedule. Moreover, in OECD countries with highest GDP per capita the employees bear average labor tax burden with simultaneously low employers' social security contributions rates.
KW - personal income tax
KW - social security contributions
KW - consumption tax
KW - social VAT
KW - progressivity
KW - TAX
M3 - статья в сборнике материалов конференции
T3 - Current Trends in Public Sector Research
SP - 187
EP - 194
BT - PROCEEDINGS OF THE 22ND INTERNATIONAL CONFERENCE CURRENT TRENDS IN PUBLIC SECTOR RESEARCH
A2 - Dvorakova, P
A2 - Baisa, B
PB - Masaryk University Press
Y2 - 18 January 2018 through 19 January 2018
ER -
ID: 69863007