The Relationship Between the Tax Burden and Financing Public Services: A Comparison of Ukraine and European Countries
Journal Title: Financial Markets, Institutions and Risks - Year 2017, Vol 1, Issue 3
Abstract
he strategy of reforming the country’s tax system should consider the real effect that taxpayers receive in response to their tax payments, that is, the level of financing public services. The article formalizes the links between the tax burden and financing public services since multifactor dependencies using the panel regression method with fixed effects for Ukraine and 10 countries – its tax competitors (Bulgaria, Georgia, Latvia, Lithuania, Romania, the Czech Republic, Estonia, Slovakia, Moldova, Serbia). Based on the calculations, it was found that the existing level of tax burden in Ukraine is overstated, while the optimal level in 2012 was: 1) the total tax burden – 14.39-18.09% of GDP; 2) the burden on legal entities – 45.99-48.32% of the profits of enterprises; 3) the burden on individuals – 11.92-28.75% of wages. These values correspond to the actual amounts of government spendings on financing public services.
Authors and Affiliations
Iaryna Samusevych, Ali Shamaelh
Keywords
Related Articles
- EP ID EP501084
- DOI -
- Views 114
- Downloads 0
Mathematical literacy and Nigerian Stock Exchange: an exposition of financial information for Blue-chip stocks’ business decision analysis
In academic study, as in other walks of life, figures can give you a lot of detailed information quickly and efficiently, the time you invest in learning how to read tables and diagrams will save you a lot in your future...
Structural-functional analysis of the Ukraine banking system
The article analyzes the changes in the financial condition of the banking system during the last years, during the period of intensive reduction of the banking services market. The author has established a stable distri...
What are the Costs and Benefits of a International Corporate Governance Reregulation?
This work is a research that applies the organizational model of the business organization of Corporate Governance, to a process of changing in the organizational structure. This Paper defines the various organizational...
Evaluating of the financial equalization system in Ukraine
The article assesses the effectiveness of the functioning of the financial equalization system in Ukraine. The authors of the article developed the indicator of the level of efficiency of the equilibrium procedures, calc...
Ancient Sri Lankan Economic Systems
The Greek philosopher Father of History Herodotus realized the value of studying the past as not how it happened but what happened. It is also a critical analysis that shows the human development; a phenomenon that chang...