Economic Themes (2012) 50 (1) 3, 33-46
Jadranka Đurović-Todorović, Marina Đorđević
Abstract: Personal income tax is one of the most important taxes, because trough this tax, government collects a significant amount of tax revenues. However, its yield will be different depending on the selected tax models and types of tax rates that are applied. Progressive personal income tax provides the highest scope of revenue, while the proportional taxation collects much less funds.The aim of this paper is to show that there is a correlation between the chosen taxation model and height of revenues collected, or that there is a strong link between progressivity and sufficiency in personal income tax system. It is also necessary to point out the need of introducing synthetic income taxation in the tax system in Serbia.
Keywords: tax on personal income; yield; progressivity; tax rates; a dual model; flat taxation
THE CONNECTION BETWEEN PROGRESSIVITY AND SUFFICIENCY IN THE PERSONAL INCOME TAX SYSTEM
Jadranka Đurović-Todorović, Marina Đorđević
Abstract: Personal income tax is one of the most important taxes, because trough this tax, government collects a significant amount of tax revenues. However, its yield will be different depending on the selected tax models and types of tax rates that are applied. Progressive personal income tax provides the highest scope of revenue, while the proportional taxation collects much less funds.The aim of this paper is to show that there is a correlation between the chosen taxation model and height of revenues collected, or that there is a strong link between progressivity and sufficiency in personal income tax system. It is also necessary to point out the need of introducing synthetic income taxation in the tax system in Serbia.
Keywords: tax on personal income; yield; progressivity; tax rates; a dual model; flat taxation
