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Is Progressivity A Supporter Of Tax Revenues For The Public Budget Of Eu27 Countries?

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  • Alina Georgeta AILINCA

    (“Victor Slavescu” Financial and Monetary Research Center, INCE, Romanian Academy)

Abstract

The COVID-19 crisis calls into question the ability of governments to face the challenges, and covering the challenges can only be done with substantial budget revenues. Fiscal progressivity often reflects the discussion about equity, but also fiscal yield. In general, fiscal progressivity reflects the ability of the marginal tax rate to exceed the average rate or the superunitary tax elasticity of a certain type of income in relation to that income. Considering that there is no single answer as to what fiscal progressivity means, the article proposes, through three methods of calculating fiscal progressivity, the analysis of its ability to increase revenues from current taxes on income, wealth, etc. The analysis is based on the study of elasticities and reflects the importance of additional efforts to place as best as possible the elements of fiscal progressivity at the level of fiscal regulations in the countries of the European Union, both for improving fiscal equity for citizens and for increasing the state's self-sustaining capacity.

Suggested Citation

  • Alina Georgeta AILINCA, 2023. "Is Progressivity A Supporter Of Tax Revenues For The Public Budget Of Eu27 Countries?," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(1), pages 86-93.
    • Handle: RePEc:brc:brccej:v:8:y:2023:i:1:p:86-93
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    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(6), pages 498-498.
    2. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    personal income tax; progressive taxation system; equity; fiscal yield; European Union countries;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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