Enter the e-mail address associated with your account.
Click "send" to have your password e-mailed to you.

Email:
Institute of Public Finance

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License
Archive
print

Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects


Ivica Urban, Institute of Public Finance, Zagreb, Croatia


Abstract
This paper presents progressivity breakdowns for Croatian personal income tax (henceforth PIT) in 1997 and 2004. The decompositions reveal how the elements of the system – tax schedule, allowances, deductions and credits – contribute to the achievement of progressivity, over the quantiles of pre-tax income distribution. Through the use of ‘single parameter’ Gini indices, the social decision maker’s (henceforth SDM) relatively
more or less favorable inclination toward taxpayers in the lower tails of pre-tax income distribution is accounted for. Simulations are undertaken to show how the introduction of a flat-rate system would affect progressivity.

Keywords:  personal income tax, progressivity, decomposition

Year:  2006   |   Volume:  30   |   Issue:  3   |   Pages:  207 - 231

Full text (PDF)   |   E-mail this article   |   Download to citation manager
 September, 2006
III / 2006
DOAJ
Hrčak
RePEc
CrossRef
CrossCheck
EBSCO Publishing
ISSN 1846-887X
e-ISSN 1845-9757
In order to give you a better user experience, cookies have been stored on your computer.
By accessing the website www.fintp.hr the user has given consent to using cookies. More information