Preliminary communication

https://doi.org/10.3326/pse.43.2.2

A proposal for a simple average-based progressive taxation system

Dirk-Hinnerk Fischer ; Tallinn University of Technology, Tallinn, Estonia
Simona Ferraro orcid.org/0000-0001-5175-5348 ; Tallinn University of Technology, Tallinn, Estonia

Abstract

This paper is a first theoretical presentation of a simple progressive taxation system. The system is based on two adaptations of one easily calculable formula that is based on the societal average income of the previous year. The system contributes to academic discussions as it is a novel approach. It is a progressive tax that does not discriminate against anyone as the progression increases continuously and the increase in tax payment does not go beyond the additional income. The analysis in the paper shows that the core advantage of the system is its simple, transparent and adaptable mechanism.

Keywords

taxation; flat tax; progressive tax; taxation efficiency

Hrčak ID:

220868

URI

https://hrcak.srce.hr/220868

Publication date:

10.6.2019.

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