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Analysis of selected indicators of tax competition and tax harmonization in the EU

Author

Listed:
  • Marta Lukáčová

    (University of Prešov, Slovakia)

  • Jaroslav Korečko

    (University of Prešov, Slovakia)

  • Sylvia Jenčová

    (University of Prešov, Slovakia)

  • Mária Jusková

    (University of Prešov, Slovakia)

Abstract

The paper aims to provide an analytical view of the harmonization of income taxes in the European Union. The aim of the theoretical part is to provide an overview of the literature that deals with the issue of tax harmonization and tax competition. This section contains the views of experts on tax competition and tax harmonization. The paper explores the current state, as well as the development in the field of income tax harmonization, and competition in the Member States. The aim of the analytical part is to compare income taxes in the countries of the European Union and to bring proposals for the solution of tax harmonization. The analysis focuses solely on the most important direct taxes, personal income tax, and corporate income tax. The results of cluster analysis using four tax determinants suggest the future of the direct tax harmonization process. The graphical analyzes indicate, that the process of tax harmonization could begin with the harmonization within countries that are geographically and politically close together. Harmonization would bring together countries with a similar tax burden and could continue in other interested European Union countries.

Suggested Citation

  • Marta Lukáčová & Jaroslav Korečko & Sylvia Jenčová & Mária Jusková, 2020. "Analysis of selected indicators of tax competition and tax harmonization in the EU," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 123-137, September.
  • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:123-137
    DOI: 10.9770/jesi.2020.8.1(8)
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    References listed on IDEAS

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    More about this item

    Keywords

    taxation; income taxes; tax harmonization; tax competition;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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