THE TAX BURDEN ON CONSUMPTION, LABOR AND CAPITAL IN EU COUNTRIES

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 THE TAX BURDEN ON CONSUMPTION, LABOR AND CAPITAL IN EU COUNTRIES

Journal Title: Проблеми і перспективи розвитку підприємництва - Year 2014, Vol 1, Issue 6

Abstract

In the article the methodological aspects of assessing the tax burden on consumption and factors of production are investigated; the dynamics and peculiarities of formation of tax burden on consumption, labor and capital in the EU in 2000 - 2010 are analyzed; tendencies redistribution of the tax burden between consumption and production factors because of modern tax reforms in the United Europe are discovered. In the study, it was found that the analysis of implicit tax rates of consumption, labor and capital as the shares corresponding groups of taxes in GDP, makes it impossible to reliably (without a number of constraints) to assess the level of tax burden on consumption and production factors. However, through a comprehensive analysis of the performance and interests separate and tax payments in GDP can find a lot of features of the distribution of the tax burden on the economy. The analysis makes it possible to argue that in 2000 - 2010 was observed many differences in the formation of the tax burden on consumption, labor and capital in the EU as a whole and in the context of its "old" and "new" member countries in particular. In 2009 - 2014 majority of countries of United Europe increased the tax burden on consumption and labor (including by increasing the rates of contributions to the state social funds). A number of EU-15 countries resorted to increasing the tax burden on capital (profits of large companies, investment income, expensive real estate, etc.), some countries have reduced the individual tax rate on capital increase under the condition (maintenance at a high level) the standard rate of VAT. Despite fiscal oriented tax reform, each country tried to find a "balance point" requirements of fiscal adequacy, economic efficiency and fairness in the development of the tax system, resulting in the observed convergence in the EU taxation of consumption at the same time with the development of traditional national models of taxation on labor and capital. However, while the EU-15 countries are increasingly using the possibilities redistributive taxes or tax improved mechanisms to encourage entrepreneurship, most of the new EU member state continue to enforce its relatively low direct taxes to stimulate investment processes.  

Authors and Affiliations

Viktor Melnik, Tetiana Koschuk

Keywords

EP ID EP126747
DOI -
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