Naslov
Flat Tax in South East Europe: Has it Reached the Peak?

Autori
Blažić, Helena

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Contemporary Issues in Public Policy and Administrative Organisation in South East Europe

Urednik/ci
Vintar, Mirko ; Pevcin, Primož

Izdavač
Fakulteta za upravo Univerze v Ljubljani

Grad
Ljubljana

Godina
2009

Raspon stranica
3-23

ISBN
978-961-262-017-2

Ključne riječi
flat tax, average tax rates, Hall-Rabushka, transition economies

Sažetak
Although the Hall-Rabushka flat tax model is the most popular one and the flat tax revolution seems to be the revival of the original idea of those authors, relatively little of it (besides its main and most striking characteristic - one rate) has remained in its practical implementation. Furthermore, it has not been proven that all the expected effects have been realized completely. This might be the result of the departures of practical implementations from the model and the variety of forms, but also to the lack of expected behavioural effects. It could also bring about negative distributional effects, which would be almost certainly detrimental to the middle income class. Its rejection in Slovenia and Croatia seems to be in line with those arguments, although possibly not final. The specific problem of Croatian personal income tax is its interaction with employee social security contributions, which are rather high and relatively lower only for the highest incomes. A revenue neutral reform will probably lead to a rise in average tax rate for most of incomes, except for the highest ones and to a rise in the already high total marginal effective tax rates for the lowest incomes. A combination of higher basic personal allowance with a higher flat tax rate will lead to a negative efficiency effects (even higher marginal total tax rates for low incomes).

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA