Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects
This paper presents progressivity breakdowns for Croatian personal income tax (henceforth PIT) in 1997 and 2004. The decompositions reveal how the elements of the system – tax schedule, allowances, deductions and credits – contribute to the achievement of progressivity, over the quantiles of pre-tax...
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| Format: | Article |
| Language: | English |
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Institute of Public Finance
2006-09-01
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| Series: | Financial Theory and Practice |
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| Online Access: | http://www.ijf.hr/eng/FTP/2006/3/urban.pdf |
| _version_ | 1828730791233847296 |
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| author | Ivica Urban |
| author_facet | Ivica Urban |
| author_sort | Ivica Urban |
| collection | DOAJ |
| description | This paper presents progressivity breakdowns for Croatian personal income tax (henceforth PIT) in 1997 and 2004. The decompositions reveal how the elements of the system – tax schedule, allowances, deductions and credits – contribute to the achievement of progressivity, over the quantiles of pre-tax income distribution. Through the use of ‘single parameter’ Gini indices, the social decision maker’s (henceforth SDM) relatively more or less favorable inclination toward taxpayers in the lower tails of pre-tax income distribution is accounted for. Simulations are undertaken to show how the introduction of a flat-rate system would affect progressivity. |
| first_indexed | 2024-04-12T17:35:29Z |
| format | Article |
| id | doaj.art-163cf254529e4d13a489d292e832acb5 |
| institution | Directory Open Access Journal |
| issn | 1846-887X 1845-9757 |
| language | English |
| last_indexed | 2024-04-12T17:35:29Z |
| publishDate | 2006-09-01 |
| publisher | Institute of Public Finance |
| record_format | Article |
| series | Financial Theory and Practice |
| spelling | doaj.art-163cf254529e4d13a489d292e832acb52022-12-22T03:22:59ZengInstitute of Public FinanceFinancial Theory and Practice1846-887X1845-97572006-09-01303207231Progressivity of personal income tax in Croatia: decomposition of tax base and rate effectsIvica UrbanThis paper presents progressivity breakdowns for Croatian personal income tax (henceforth PIT) in 1997 and 2004. The decompositions reveal how the elements of the system – tax schedule, allowances, deductions and credits – contribute to the achievement of progressivity, over the quantiles of pre-tax income distribution. Through the use of ‘single parameter’ Gini indices, the social decision maker’s (henceforth SDM) relatively more or less favorable inclination toward taxpayers in the lower tails of pre-tax income distribution is accounted for. Simulations are undertaken to show how the introduction of a flat-rate system would affect progressivity.http://www.ijf.hr/eng/FTP/2006/3/urban.pdfpersonal income taxprogressivitydecomposition |
| spellingShingle | Ivica Urban Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects Financial Theory and Practice personal income tax progressivity decomposition |
| title | Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects |
| title_full | Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects |
| title_fullStr | Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects |
| title_full_unstemmed | Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects |
| title_short | Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects |
| title_sort | progressivity of personal income tax in croatia decomposition of tax base and rate effects |
| topic | personal income tax progressivity decomposition |
| url | http://www.ijf.hr/eng/FTP/2006/3/urban.pdf |
| work_keys_str_mv | AT ivicaurban progressivityofpersonalincometaxincroatiadecompositionoftaxbaseandrateeffects |