Tax Progression vs Economic Growth & Development Index (GDI)
Journal Title: Annales Universitatis Mariae Curie-Skłodowska Sectio H Oeconomia - Year 2017, Vol 0, Issue 0
Abstract
The main purpose of this article is to present a correlation relationship of the average tax rate, the amount of tax brackets and the so-called economic “growth & development index” (GDI) in the “high taxed” and “low taxed” European countries. The hypothesis is as follows: the more number of tax brackets in income progressive tax, the lower the GDI. Research methods used in the study are: unity-based normalization and Spearman’s rank correlation analysis. Spearman’s correlation between the average tax rate in “low tax rate” countries and GDI was negative and very strong, which means that as the average tax rate increases, the GDI decreases. That correlation was statistically significant. The correlation between the number of tax brackets and the GDI was examined only for the group of countries with the highest average tax rate as the second group of EU countries are progressive-free and was positive and strong, that is, with the increase in the number of tax brackets, the value of GDI increases. But by normal standards, the association between the two variables would not be considered statistically significant. Therefore, the hypothesis has been rejected. The subject of study requires further analysis.
Authors and Affiliations
Iwona Wojciechowska-Toruńska
Keywords
Related Articles
- EP ID EP392290
- DOI 10.17951/h.2017.51.5.331
- Views 48
- Downloads 0
The Impact of Changes in Indirect Tax Rates on Inflation in Selected EU Countries
The aim of the article is to identify the extent to which the price index in the EU countries was shaped by changes in indirect tax rates. In order to ensure the comparability of data, the analysis was based on the harmo...
Wyzwania demograficzne dla systemów emerytalnych w Unii Europejskiej Demographic challenges for pension systems in the European Union
The first part of the study characterizes the aging society in the EU countries, which leads, among others, to limiting the potential of the economic development and has negative effects from the point of view of public...
Uwagi na temat chińskiego rynku zbytu towarów konsumpcyjnych ze szczególnym uwzględnieniem dóbr luksusowych Some remarks on Chinese consumer goods outlet with special consideration of luxury goods
China, being perceived so far as a cheap producer of everything, the world’s “factory”, is more and more often treated not as a supply source, but as a huge, counting more than 1.3 bln people, outlet. The long period of...
Innowacje rynku kart płatniczych w Polsce - charakter, tempo i zasadność wprowadzanych zmian Pay card market innovations in Poland - the character, rate, and justification of introduced changes
The purpose of the paper is to present the process-technological character of innovations implemented in the pay card market, to justify the direction of the introduced changes, and to assess the degree of their advancem...
Ewolucja układu budżetu zadaniowego w obszarze polityki kulturalnej państwa na przykładzie Polski i Francji
We właściwej konstrukcji budżetu zadaniowego mierniki stanowią jeden z najistotniejszych elementów, który warunkuje prawidłową ocenę stopnia osiągnięcia celu poprzez wykonane zadania i działania. Celem niniejszych badań...