Nasze serwisy używają informacji zapisanych w plikach cookies. Korzystając z serwisu wyrażasz zgodę na używanie plików cookies zgodnie z aktualnymi ustawieniami przeglądarki, które możesz zmienić w dowolnej chwili. Więcej informacji odnośnie plików cookies.

Obowiązek informacyjny wynikający z Ustawy z dnia 16 listopada 2012 r. o zmianie ustawy – Prawo telekomunikacyjne oraz niektórych innych ustaw.

Wyłącz komunikat

 
 

Logowanie

Logowanie za pomocą Centralnej Usługi Uwierzytelniania PRz. Po zakończeniu pracy nie zapomnij zamknąć przeglądarki.

Humanities and Social Sciences (dawna nazwa: Ekonomia i Nauki Humanistyczne)

Humanities and Social Sciences
(dawna nazwa: Ekonomia i Nauki Humanistyczne)
21 (3/2014), DOI: 10.7862/rz.2014.hss.34

MID-TERM EFFECTS OF THE FLAT RATE PERSONAL INCOME TAX IN HUNGARY

Zoltan BARTHA
Submitted by: Justyna Stecko

DOI: 10.7862/rz.2014.hss.34

Abstract

The objective of the paper is to examine whether the advantages and disadvantages mentioned in the literature of the flat rate income tax could be observed in Hungary. Personal income tax data provided by the Hungarian National Tax and Customs Administration was used to check the arguments. It was found that the flat tax indeed favours richer taxpayers, and because of the family tax credits, it heavily favours families with children. Tax revenues declined as tax rates were cut, while the GDP growth rate was close to stagnant. Both of these developments go against the expectations of the flat tax supporters, although it has to be mentioned that the changes were made in the midst of a European- and world-wide depression, which could have distorted the pure effects of the new tax code. Although in many countries the flat rate tax was a positive signal for investors boosting foreign direct investments, the Hungarian government introduced extra taxes on some of the transnational companies in order to balance the budget (and compensate for the lost personal income tax revenues), which meant that there was a decline in the mood of the investors. There is some indication that some illegal activities are shifted to the legal domain: the ratio of those tax reporters who earned an annual income of HUF 2 million or higher has gone from 62.5% to 66.6% in the period of 2010-12.

Full text (pdf)

References

[1] Erdős, T., Egykulcsos jövedelemadó és gazdasági növekedés, Közgazdasági Szemle, LIX. February 2012.

[2] Hall, R. E. – Rabushka, A, The Flat Tax, Stanford: Hoover Institute 1985.

[3] Mirrlees, J. A., An Exploration in the Theory of Optimal Income Taxation, in Arrow, K. J. and Intrilligator, M. D. (eds.), Handbook of Mathematical Economics 1986.

[4] Basham, P. – Mitchell, D., Lessons from Abroad — Flat Tax in Practice, in: Clemens, J. (ed.): The Impact and Cost of Taxation in Canada: the case for flat tax reform, The Fraser Institute 2008.

[5] Winer, S. L. – Hettich, W., What Is Missed If We Leave Out Collective Choice in the Analysis of Taxation, National Tax Journal 52/2,1998.

[6] Hettich, W. – Winer, S. L., Democratic Choice and Taxation: A Theoretical and Empirical Analysis, Cambridge University Press 2005

[7] Kuznets, S., Economic Growth and Income Inequality, The American Economic Review, 45/1., March 1955.

[8] Piketty, T., Capital in the Twenty-First Century, Harvard University Press 2014.

[9] Romer, C. D. - Romer, D. H., The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks, American Economic Review, 100/3, 2010.

[10] Wanniski, J., The Way the World Works, Fourth Edition, Regnery Publishing Inc 1998.

[11] Bozsik, S., Main Changes in European Tax Policies between 2007 and 2011, Theory Methodology Practice, 9/2, 2013.

[12] Slonimczyk, F., The effect of taxation on informal employment: evidence from the Russian flat tax reform, in: Lehmann, H. – Tatsiramos, K. (eds.) Informal Employment in Emerging and Transition Economies (Research in Labor Economics, Volume 34), Emerald Group Publishing Limited 2012.

[13] Brook, A-M. – Leibfritz, W., Slovakia’s Introduction of the Flat Tax as Part of Wider Economic Reforms, OECD Working Papers nr. 448, 2005.

[14] Papp, Zs., Adóemelés Magyarországon - így fizet többet a lakosság. Napi Gzadaság, 28.01.2014.

[15] Government Regulation nr. 299/2011 (December 22) on the expected rate of wage increase, 2011. http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=143213.580592

About this Article

TITLE:
MID-TERM EFFECTS OF THE FLAT RATE PERSONAL INCOME TAX IN HUNGARY

AUTHORS:
Zoltan BARTHA

AUTHORS AFFILIATIONS:
PhD Zoltan Bartha, Institute of Economic Theory, University of Miskolc, Hungary

SUBMITTED BY:
Justyna Stecko

JOURNAL:
Humanities and Social Sciences
21 (3/2014)

KEY WORDS AND PHRASES:
flat rate income tax, Hungary, tax statistics, income distribution

FULL TEXT:
http://doi.prz.edu.pl/pl/pdf/einh/109

DOI:
10.7862/rz.2014.hss.34

URL:
http://dx.doi.org/10.7862/rz.2014.hss.34

RECEIVED:
2014-06-01

COPYRIGHT:
Publishing House of Rzeszow University of Technology Powstańców Warszawy 12, 35-959 Rzeszow

POLITECHNIKA RZESZOWSKA im. Ignacego Łukasiewicza; al. Powstańców Warszawy 12, 35-959 Rzeszów
tel.: +48 17 865 11 00, fax.: +48 17 854 12 60
Administrator serwisu:

Deklaracja dostępności | Polityka prywatności