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Average tax rate and tax liability across pre-tax income distribution. Notes: PIT – personal income tax. SIC – social insurance contributions. IND – indirect taxes. For descriptions of the taxes, see Sect. 4.1. Each curve is obtained by smoothing the values on the ordinate using the LOWESS smoother (in Stata) with the default bandwidth size of 0.8. To prevent influential observations from the top and bottom of the pre-tax income distribution from affecting the shape of the curves, the top and bottom 0.1% of observations were excluded before the smoothing. Pre-tax income and tax liabilities are equivalised using the OECD-modified equivalence scale. The legend applies to both panels
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We develop a framework for analysing the loss of social welfare due to taxation, where tax progressivity and regressivity, measured by the Kakwani index, are given interpretation in terms of welfare gain and loss, respectively. Our framework generalises the framework of Kakwani and Son (J Econ Inequal 19:185–212, 2021), by taking account of the int...
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We study theories of justice that disentangle normative views on intergenerational discounting and intergenerational inequality. Any modular social welfare function is uniquely identified by a time-discounting function—capturing attitudes across generations—and an aggregator function—capturing attitudes towards inequality. The rich choice of such f...
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... Zaključci prve skupine istraživanja su sljedeći: (a) dohodak od plaće ima najveći razmjerni doprinos nejednakosti, a po važnosti ga slijedi dohodak od samostalne djelatnosti, (b) ovisno o korištenoj metodi dekompozicije, u jednoj skupini istraživanja mirovine pozitivno doprinose nejednakosti, dok u drugoj skupini istraživanja mirovine smanjuju nejednakost, (c) novčane socijalne naknade smanjuju nejednakost, ali im je uloga ograničena zbog relativno malenog udjela u ukupnom dohotku, (d) unatoč visokoj koncentriranosti dohotka od imovine i kapitala, njihov doprinos nejednakosti je relativno nizak, zahvaljujući niskim udjelima u ukupnom dohotku. Glavni zaključci istraživanja redistributivnih učinaka su: (a) porez na dohodak i socijalne naknade s cenzusom su najučinkovitiji fiskalni instrumenti za smanjenje nejednakosti, (b) neizravni porezi, poput poreza na dodanu vrijednost, regresivni su, odnosno povećavaju nejednakost (Ledić, Rubil & Urban, 2022b). ...
U ovom radu dekomponira se nejednakost ukupnog dohotka na sastavnice koje prikazuju doprinose pojedinih izvora dohotka ukupnoj nejednakosti. Glavni izvori dohotka su dohodak od zaposlenosti, samozaposlenosti, kapitala i imovine, socijalne naknade te izravni porezi. Rezultati za Hrvatsku uspoređeni su s rezultatima za 14 odabranih EU zemalja, a kao podatkovna podloga korišten je mikrosimulacijski model poreza i socijalnih naknada EUROMOD. Novina koju donosi ovo istraživanje jest upotreba EU-SILC podataka za Hrvatsku koji su korigirani kako bi reprezentativnije odražavali gornji dio distribucije dohotka. Analiza pokazuje da nereprezentativni podaci pružaju pristranu sliku o nejednakosti ukupnog dohotka i relativnoj važnosti pojedinih izvora dohotka.
Many countries, including Croatia, support households in need not only through social transfers, but also through ‘socially motivated’ reduced VAT rates for goods such as food. These measures are also useful to those who are richer, so the question arises whether it is more desirable to increase social benefits that target low-income housholds. This paper analyses distributive effects of a hypothetical reform of the Croatian system of taxation and transfers which includes: (a) abolition of socially motivated reduced VAT rates; (b) increase of generosity and the number of the users of guaranteed minimum benefit and the users of allowance for vulnerable energy buyers. The reform is designed to be virtually neutral fiscally in the sense that almost all additional VAT is spent on the increase of guaranteed minimum benefit and allowance for vulnerable energy buyers. Results of the analysis conducted by a detailed microsimulational model of taxation and transers that uses the data from EU-SILC and the Survey on household consumption show that the reform reduces poverty and inequality based on income after taxation and transfers, in spite of the increase of the regressivity of VAT and the decrease of the progressivity of the guaranted minimum benefit and allowance for vulnerable energy buyers. Key words: VAT, social benefits, microsimulations, inequalities, poverty, reform
