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World Tax Index: Methodology and Data

Author

Listed:
  • Igor Kotlan

    (VSB - Technical University of Ostrava)

  • Zuzana Machova

    (VSB - Technical University of Ostrava)

Abstract

The article presents an indicator of tax burden that can be used as an alternative to tax quota, or implicit tax rates in macroeconomic analyses. It is called WTI – World Tax Index, which is an overall multi-criteria index that was constructed by authors on the basis of hard as well as soft data. The soft data expresses Qualified Expert Opinion that was gained through a large-scale questionnaire survey carried out among tax specialists from all OECD countries. The WTI consists of several sub-indices that deal with different groups of taxes, which are basically consistent with the classification according to the OECD. In the paper, values of WTI and its components for the period of 2005–2010 for all OECD countries are presented. Based on a comparison of the WTI with the tax quota, we found that the tax quota can be quite a good indicator of the real tax burden for some types of taxes. But we also show that the use of the tax quota for measuring the tax burden may be highly problematic in case of corporate taxation.

Suggested Citation

  • Igor Kotlan & Zuzana Machova, 2012. "World Tax Index: Methodology and Data," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 19-33, June.
    • Handle: RePEc:cmn:journl:y:2012:i:2:p:19-33
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    References listed on IDEAS

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    1. Irena Szarowská, 2011. "Changes in taxation and their impact on economic growth in the European Union," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(2), pages 325-332.
    2. Jens Mathias Arnold, 2008. "Do Tax Structures Affect Aggregate Economic Growth?: Empirical Evidence from a Panel of OECD Countries," OECD Economics Department Working Papers 643, OECD Publishing.
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    Cited by:

    1. Jaroslaw Marczak & Natalya Uvarova, 2016. "The Kazakhstan-European Union Partnership: Modernization of the Republic's Financial System," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 229-241, December.
    2. Zuzana Machova & Igor Kotlan, 2013. "World Tax Index: New Methodology for OECD Countries, 2000-2010," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 165-179, June.
    3. Natalya Uvarova, 2015. "Convergence between Kazakhstan´s Financial System and International Standards: Overcomig Difficulties," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 121-129, June.
    4. Sona Schovankova, 2013. "Determinants of the Spatial Distribution of Foreign Empolyees on Different Skilled Positions: The Case of the Czech Republic," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 115-139, June.

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