Detail publikace

Tax rate to maximize the revenue: Laffer curve for the Czech Republic

KARAS, M.

Originální název

Tax rate to maximize the revenue: Laffer curve for the Czech Republic

Typ

článek v časopise - ostatní, Jost

Jazyk

angličtina

Originální abstrakt

The aim of this article is to model the relationship between the rate of personal income tax and the revenue it generates, and to derive a tax rate that would maximize this revenue within the Czech Republic, using methodologies described in earlier works (Hsing, 1996). This tax rate represents an upper limit. Overstepping it has negative consequences for corporate fi nances and government budgetary funding alike, because it undermines the workers motivation to work, reduces buying power, and shifts work activities in favor of gray economy. The period of interest is a time series from 1993 to 2010. Two models were devised. The basic research instrument was a second-degree polynomial regression with a logarithmic transformation of the input data. The explaining variable was the tax revenue, the explanatory variable in Model 1 was the ratio of tax revenue to personal gross annual income. Model 2 featured the ratio of tax revenue to gross domestic product. To limit model instability, all data was stated per capita, in 2010 prices. Both models are statistically signifi cant. By comparison, it was determined that, in the period of 1994–2010, the historical tax rate was lower than the rate designed to maximize the revenue. It approached the theoretical optimum most closely in 2007, and deviated from it most severely in 1995.

Klíčová slova

taxation of individuals, Laffer curve, polynomial regression

Autoři

KARAS, M.

Rok RIV

2012

Vydáno

18. 7. 2012

Nakladatel

Mendel University Press

ISSN

1211-8516

Periodikum

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

Ročník

LX

Číslo

4

Stát

Česká republika

Strany od

189

Strany do

194

Strany počet

6

URL

Plný text v Digitální knihovně

BibTex

@article{BUT92937,
  author="Michal {Karas}",
  title="Tax rate to maximize the revenue: Laffer curve for the Czech Republic",
  journal="Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis",
  year="2012",
  volume="LX",
  number="4",
  pages="189--194",
  doi="10.11118/actaun201260040189",
  issn="1211-8516",
  url="https://acta.mendelu.cz/60/4/0189/"
}