Social Aspect Of Crisis Tax: A Fiscal Instrument Or A Deviation Of Tax System

The role of taxation is actualised in the times of financial crises as a consequence of market failure. In the center of attention comes the thesis about the role of the state in overcoming the crisis. A new contradiction arises with the conflict of libertarian thesis regarding the withdrawal of the state and the egalitarian concept of equality and social justice. Market failure results in lowering wages, while the state consequently, by means of taxation, decreases the existential substance. In the crises circumstances the legislator is often brought in front of the citizens conflict of expectations: to take an active part in removing or mitigating the consequences of crisis, while facing hostile public environment towards imposing new crisis or increasing the existing taxes essential for achieving mitigating effects for addressing the crisis. In 2009 Croatian legislator passed the crisis tax act aiming to accumulate the means for securing the existing level of social security. By analysing the state duties derived from the concept of welfare state and the Croatian version of crisis tax the following needs to be answered: does the crisis taxation represent a regular fiscal instrument or is it in fact just a deviation of tax system.