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Measurement of personal income tax progressivity in the post-socialist countries of Europe compared to other OECD countries

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  • Magda WISNIEWSKA-KUZMA

    (University of Białystok)

Abstract

The aim of the article is to measure and analyse changes in the steepness of PIT tax progressivity in OECD countries in 2004-2017, using an alternative method of measuring the type of tax progression. The Steepness Progression Index was developed based on the OECD's indicators of average and marginal taxation in two selected income groups (67% and 167% of average remuneration). The index was used to determine the type of tax progressivity: progressive, regressive and proportional. The result of the empirical study showed that seven OECD groups could be identified among OECD countries with similar levels of progression steepness. Post-socialist countries (except Slovenia) formed one group of countries characterized by the occurrence of regressive progression in the PIT tax and a minimal difference between the average and marginal taxation at both levels of income.

Suggested Citation

  • Magda WISNIEWSKA-KUZMA, 2020. "Measurement of personal income tax progressivity in the post-socialist countries of Europe compared to other OECD countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 113-131, December.
    • Handle: RePEc:jes:journl:y:2020:v:11:p:113-131
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    File URL: https://ejes.uaic.ro/articles/EJES2020_1102_WIS.pdf
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    References listed on IDEAS

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