IDEAS home Printed from https://ideas.repec.org/a/prg/jnlaop/v2016y2016i1id498p54-67.html
   My bibliography  Save this article

Interval and global progressivity of the income tax from wages in the Czech and Slovak Republics
[Intervalová a globální progresivita daně z příjmů z mezd v České republice a na Slovensku]

Author

Listed:
  • Květa Kubátová

Abstract

The article deals with the measurement of progressivity of personal income tax in the Czech Republic and Slovakia imposed on wages. It works with both the methods known from the literature: the local method (interval) and global progressivity. The data source is the wage statistics of the Statistical Offices and taxes are calculated fictitiously on the basis of law with adoption of assumptions.Results for interval progressivity in both countries show that while progressivity of the lowest income taxpayers is higher, it decreases with increasing gross income. Personal income tax in the Czech and Slovak Republics is observed as progressive in the entire range, even though the statutory tax rate is linear.The Lorenz curve shows that the distributions of gross wages in the Czech Republic and Slovakia are of a similar nature. The values of the coefficient of interval progressivity and the coefficient according to Musgrave and Thin (CR has a coefficient of 1.024 and SR of 1.037) show that personal income tax is more progressive in Slovakia. Although Slovak personal income tax imposed on wages is more progressive, post-tax incomes of employees are more equitably distributed in the Czech Republic.

Suggested Citation

  • Květa Kubátová, 2016. "Interval and global progressivity of the income tax from wages in the Czech and Slovak Republics [Intervalová a globální progresivita daně z příjmů z mezd v České republice a na Slovensku]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(1), pages 54-67.
    • Handle: RePEc:prg:jnlaop:v:2016:y:2016:i:1:id:498:p:54-67
    DOI: 10.18267/j.aop.498
    as

    Download full text from publisher

    File URL: http://aop.vse.cz/doi/10.18267/j.aop.498.html
    Download Restriction: free of charge
    File URL: http://aop.vse.cz/doi/10.18267/j.aop.498.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.aop.498?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498-498.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesca Gastaldi & Paolo Liberati & Elena Pisano & Simone Tedeschi, 2014. "Progressivity-Improving VAT Reforms in Italy," Working papers 6, Società Italiana di Economia Pubblica.
    2. Junyi Zhu, 2014. "Bracket Creep Revisited - with and without r > g: Evidence from Germany," Journal of Income Distribution, Ad libros publications inc., vol. 23(3), pages 106-158, November.
    3. Onrubia Fernández, Jorge & Picos, Fidel & Rodado, María del Carmen, 2019. "Shifting tax burden to top income earners: What is the best way to reduce inequality?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-31.
    4. Jacques Silber, 1994. "Income Distribution, Tax Structure, and the Measurement of Tax Progressivity," Public Finance Review, , vol. 22(1), pages 86-102, January.
    5. Sanz Labrador, Ismael & Sanz-Sanz, José Félix, 2013. "Política fiscal y crecimiento económico: consideraciones microeconómicas y relaciones macroeconómicas," Macroeconomía del Desarrollo 5367, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. José Félix Sanz-Sanz & Juan Manuel Castañer-Carrasco & Desiderio Romero-Jordán, 2016. "Consumption tax revenue and personal income tax: analytical elasticities under non-standard tax structures," Applied Economics, Taylor & Francis Journals, vol. 48(42), pages 4042-4050, September.
    7. Chakravarty, Satya R. & Sarkar, Palash, 2022. "A synthesis of local and effective tax progressivity measurement," MPRA Paper 115180, University Library of Munich, Germany.
    8. Alois Guger & Silvia Rocha-Akis, 2016. "Redistribution by the State in Austria," WIFO Bulletin, WIFO, vol. 21(11), pages 100-115, September.
    9. Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2013. "Ist Deutschland wirklich so progressiv? Einkommensumverteilung im europäischen Vergleich," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 82(1), pages 111-127.
    10. Martin Weiss, 2009. "Higher Tax Rates on Labor? Evidence from German Panel Data," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 65(1), pages 73-92, March.
    11. Carbonell-Nicolau, Oriol & Llavador, Humberto, 2018. "Inequality reducing properties of progressive income tax schedules: the case of endogenous income," Theoretical Economics, Econometric Society, vol. 13(1), January.
    12. Laszlo Goerke, 2003. "Tax Evasion and Tax Progressivity," Public Finance Review, , vol. 31(2), pages 189-203, March.
    13. Cont, Walter & Porto, Alberto, 2014. "Personal and regional redistribution through public finance in a federal setting," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 563-578.
    14. Erkki Koskela, 2010. "Analysis of Labor Tax Progression under Heterogeneous Domestic Labor Markets and Flexible Outsourcing," CESifo Working Paper Series 3239, CESifo.
    15. Nolan, Matt, 2018. "Horizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013," Working Paper Series 7657, Victoria University of Wellington, Chair in Public Finance.
    16. Katie M. Jajtner & Sophie Mitra & Christine Fountain & Austin Nichols, 2020. "Rising Income Inequality Through a Disability Lens: Trends in the United States 1981–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 81-114, August.
    17. Momi Dahan, 2023. "Social Construction And The Progressivity Of Local Tax Relief," Israel Economic Review, Bank of Israel, vol. 21(1), pages 1-33, March.
    18. Biung-Ghi Ju & Juan Moreno-Ternero, 2011. "Progressive and merging-proof taxation," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(1), pages 43-62, February.
    19. Tine Stanovnik & Miroslav Verbic, 2014. "Personal income tax reforms and tax progressivity in Slovenia, 1991-2012," Financial Theory and Practice, Institute of Public Finance, vol. 38(4), pages 441-463.
    20. Pogorelskiy, Kirill & Seidl, Christian & Traub, Stefan, 2010. "Tax progression: International and intertemporal comparison using LIS data," Economics Working Papers 2010-08, Christian-Albrechts-University of Kiel, Department of Economics.

    More about this item

    Keywords

    Wage tax; tax progressivity; Lorenz curve; Gini coefficient; Czech Republic; Slovakia;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlaop:v:2016:y:2016:i:1:id:498:p:54-67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.