IDEAS home Printed from https://ideas.repec.org/a/bpj/bistud/v13y2018i1p19n4.html
   My bibliography  Save this article

Unconditional Basic Income in the Czech Republic: What Type of Taxes Could Fund It? A Theoretical Tax Analysis

Author

Listed:
  • Špeciánová Jitka

    (Faculty of Economics, University of Economics, Prague, W. Churchill Sq. 1938, Prague 3, Prague, Czech Republic)

Abstract

This paper contains a summary of public support for the idea of unconditional basic income in the Czech Republic in the first part. Interest in unconditional income can be found both in the Czech political sphere and in the social sciences community. In the second part, the article theoretically analyzes the possible sources of unconditional basic income funding. The aim of this paper is to support argumentation in favor of the implementation of BI by a systematic analysis of the real possibilities of its funding through the state tax revenues. The feasibility of funding a BI scheme using taxes on labor, property, consumption, environmental taxes, financial transaction tax, and tax on the transfer of information is considered. Consideration is also given to administrative savings that the basic income system could bring. Due to political enforceability of BI, it is important to contemplate and discuss the distortions and other problems of proposed changes in taxation, which would not be negligible as can be expected.

Suggested Citation

  • Špeciánová Jitka, 2018. "Unconditional Basic Income in the Czech Republic: What Type of Taxes Could Fund It? A Theoretical Tax Analysis," Basic Income Studies, De Gruyter, vol. 13(1), pages 1-19, June.
    • Handle: RePEc:bpj:bistud:v:13:y:2018:i:1:p:19:n:4
    DOI: 10.1515/bis-2017-0024
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/bis-2017-0024
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/bis-2017-0024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, ZhongXiang & Baranzini, Andrea, 2004. "What do we know about carbon taxes? An inquiry into their impacts on competitiveness and distribution of income," Energy Policy, Elsevier, vol. 32(4), pages 507-518, March.
    2. Rieger, Jörg, 2014. "Financial Transaction Tax and Financial Market Stability with Diverse Beliefs," Working Papers 0563, University of Heidelberg, Department of Economics.
    3. James Tobin, 1978. "A Proposal for International Monetary Reform," Eastern Economic Journal, Eastern Economic Association, vol. 4(3-4), pages 153-159, Jul/Oct.
    4. Hanke, Michael & Huber, Jürgen & Kirchler, Michael & Sutter, Matthias, 2010. "The economic consequences of a Tobin tax--An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 74(1-2), pages 58-71, May.
    5. Frank, Robert H., 2008. "Should public policy respond to positional externalities?," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1777-1786, August.
    6. H.F. Campbell & K.A. Bond, 1997. "The Cost of Public Funds in Australia," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 22-34, March.
    7. Harry Campbell, 1997. "Deadweight Loss and the Cost of Public Funds in Australia," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 4(2), pages 231-236.
    8. Ms. Thornton Matheson, 2011. "Taxing Financial Transactions: Issues and Evidence," IMF Working Papers 2011/054, International Monetary Fund.
    9. Alan D. Viard & Robert Carroll, 2012. "Progressive Consumption Taxation: The X Tax Revisited," Books, American Enterprise Institute, number 10533, September.
    10. Andrew Kashdan & Daniel B. Klein, 2006. "Assume the Positional: Comment on Robert Frank," Econ Journal Watch, Econ Journal Watch, vol. 3(3), pages 412-434, September.
    11. John Freebairn, 1995. "Reconsidering the Marginal Welfare Cost of Taxation," The Economic Record, The Economic Society of Australia, vol. 71(2), pages 121-131, June.
    12. Torry, Malcolm, 2015. "Two feasible ways to implement a revenue neutral Citizen’s Income scheme," EUROMOD Working Papers EM6/15, EUROMOD at the Institute for Social and Economic Research.
    13. Martin Feldstein, 1987. "The Effects of Taxation on Capital Accumulation," NBER Books, National Bureau of Economic Research, Inc, number feld87-1, January.
    14. Widerquist, Karl, 2005. "A failure to communicate: what (if anything) can we learn from the negative income tax experiments?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(1), pages 49-81, February.
    15. Fred E. Foldvary, 2005. "Geo-Rent: A Plea to Public Economists," Econ Journal Watch, Econ Journal Watch, vol. 2(1), pages 106-132, April.
    16. International Monetary Fund, 2001. "Belgium: Selected Issues," IMF Staff Country Reports 2001/045, International Monetary Fund.
    17. Stephan Schulmeister, 2009. "A General Financial Transaction Tax: A Short Cut of the Pros, the Cons and a Proposal," WIFO Working Papers 344, WIFO.
    18. repec:bla:ecorec:v:71:y:1995:i:213:p:121-31 is not listed on IDEAS
    19. Tomáš Buus, 2012. "Daně z příjmů versus daň z přidaní hodnoty v malé otevřené ekonomice [Taxes on income vs. value added tax in small open economy]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(1), pages 58-80.
    20. Robert J. Van Der Veen, 1998. "Real Freedom versus Reciprocity: Competing Views on the Justice of Unconditional Basic Income," Political Studies, Political Studies Association, vol. 46(1), pages 140-163, March.
    21. Charles L. Ballard & John Karl Scholz & John B. Shoven, 1987. "The Value-Added Tax: A General Equilibrium Look at Its Efficiency and Incidence," NBER Chapters, in: The Effects of Taxation on Capital Accumulation, pages 445-480, National Bureau of Economic Research, Inc.
    22. repec:aei:rpbook:33699 is not listed on IDEAS
    23. Stuart White, 1997. "Liberal Equality, Exploitation, and the Case for an Unconditional Basic Income," Political Studies, Political Studies Association, vol. 45(2), pages 312-326, June.
    24. Carl, Jeremy & Fedor, David, 2016. "Tracking global carbon revenues: A survey of carbon taxes versus cap-and-trade in the real world," Energy Policy, Elsevier, vol. 96(C), pages 50-77.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier Damette & Stéphane Goutte, 2014. "Tobin tax and trading volume tightening: a reassessment," Working Papers halshs-00926805, HAL.
    2. Andrea Morone & Pasquale Marcello Falcone & Simone Nuzzo & Piergiuseppe Morone, 2020. "Does a ‘financial transaction tax’ drive out information mirages? An experimental analysis," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(4), pages 793-820, October.
    3. Olivier Damette & Beum-Jo Park, 2015. "Tobin Tax and Volatility: A Threshold Quantile Autoregressive Regression Framework," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 996-1022, November.
    4. Jiaqi Yang & Geetha Mohan & Supriya Pipil & Kensuke Fukushi, 2021. "Review on basic income (BI): its theories and empirical cases," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(2), pages 203-239, December.
    5. Thornton Matheson, 2012. "Security transaction taxes: issues and evidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(6), pages 884-912, December.
    6. Thornton Matheson, 2014. "The Effect of a Low-Rate Transaction Tax on a Highly Liquid Market," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 70(4), pages 487-510, December.
    7. Roman Šperka & Irena Szarowská, 2015. "Impact of a Financial Transaction Tax on a Financial Market," Working Papers 0013, Silesian University, School of Business Administration.
    8. Alston, Julian M. & Freebairn, John W. & James, Jennifer S., 2004. "Levy-funded research choices by producers and society," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-32.
    9. Karl Widerquist, 2006. "Who Exploits Who?," Political Studies, Political Studies Association, vol. 54(3), pages 444-464, October.
    10. Bruno Jetin, 2012. "The Tobin tax," Post-Print halshs-02020052, HAL.
    11. Thomas Hemmelgarn & Gaetan Nicodeme, 2010. "The 2008 Financial Crisis and Taxation Policy," Taxation Papers 20, Directorate General Taxation and Customs Union, European Commission.
    12. Strehl, Wolfgang, 2019. "Revisiting the progressive consumption tax: A business cycle perspective," Discussion Papers 2019/13, Free University Berlin, School of Business & Economics.
    13. Gaffeo, Edoardo & Molinari, Massimo, 2017. "Taxing financial transactions in fundamentally heterogeneous markets," Economic Modelling, Elsevier, vol. 64(C), pages 322-333.
    14. Mickaël Beaud & Thierry Blayac & Patrice Bougette & Soufiane Khoudmi & Philippe Mahenc & Stéphane Mussard, 2013. "Estimation du coût d'opportunité des fonds publics pour l'économie française," Working Papers halshs-01077141, HAL.
    15. Sanjay Sehgal & Tarunika Jain Agrawal, 2019. "Impact of Commodity Transaction Tax on Market Liquidity, Volatility, and Government Revenues: An Empirical Study for India," Vikalpa: The Journal for Decision Makers, , vol. 44(1), pages 12-29, March.
    16. Fitzgerald, Valpy, 2013. "The International Fiscal Implications of Global Poverty Reduction and Global Public Goods Provision," WIDER Working Paper Series 136, World Institute for Development Economic Research (UNU-WIDER).
    17. Artner, Annamária, 2013. "A fiatalok munkanélküliségének kérdéséhez Európa példáján keresztül [Contribution to the problem of the youth unemployment through the example of Europe]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1370-1392.
    18. Michał Zator, 2014. "Transaction costs and volatility on Warsaw Stock Exchange: implications for financial transaction tax," Bank i Kredyt, Narodowy Bank Polski, vol. 45(4), pages 349-372.
    19. Yiannis Kitromilides & Ana Rosa González, 2013. "The EU Financial Transactions Tax: Antecedents and Current Debate," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 311-321, May.
    20. Bilancini, Ennio & Boncinelli, Leonardo, 2019. "Wage inequality, labor income taxes, and the notion of social status," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-35.

    More about this item

    Keywords

    funding of unconditional basic income; Czech Republic; tax distortions; income tax; progressive consumption tax;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bistud:v:13:y:2018:i:1:p:19:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.