Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ipf/finteo/v36y2012i3p245-267.html
   My bibliography  Save this article

Effect of expenditures in personal income taxation on horizontal equity in Croatia

Author

Listed:
  • Hrvoje Simovic

    (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia)

Abstract
Tax expenditures include all reliefs and other tax procedures used for reducing or deducting the amount of tax that would otherwise have to be paid by taxpayers. There are many personal income tax expenditures in Croatia and they represent an important segment of the tax and social policies. This paper analyses the effect of expenditures in personal income taxation in Croatia on horizontal equity. Accordingly, the analysis has been made according to sources of income. The paper includes the period since 2001, when most reliefs that are still in effect were introduced into the personal income tax system. The analysis includes only those taxpayers who filed annual personal income tax returns, which is a precondition for acquiring most of the tax reliefs. The research findings show that tax reliefs significantly reduce the amount of taxable income, and the differences in the effective tax burden between the analyzed sources of income show that there is horizontal inequity in the personal income tax in Croatia.

Suggested Citation

  • Hrvoje Simovic, 2012. "Effect of expenditures in personal income taxation on horizontal equity in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 36(3), pages 245-267.
    • Handle: RePEc:ipf:finteo:v:36:y:2012:i:3:p:245-267
    as

    Download full text from publisher

    File URL: http://www.ijf.hr/upload/files/file/FTP/2012/3/simovic.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Timm Bönke & Sebastian Eichfelder, 2010. "Horizontal Equity in the German Tax-Benefit System: A Simulation Approach for Employees," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(3), pages 295-331, September.
    2. Mitja Cok & Ivica Urban, 2007. "Distribution of Income and Taxes in Slovenia and Croatia," Post-Communist Economies, Taylor & Francis Journals, vol. 19(3), pages 299-316.
    3. Jean-Yves Duclos & Abdelkrim Araar, 2006. "Poverty and Equity," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-33318-2, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ivica Urban, 2006. "Progressivity of personal income tax in Croatia: decomposition of tax base and rate effects," Financial Theory and Practice, Institute of Public Finance, vol. 30(3), pages 207-231.
    2. Luis Huesca & Abdelkrim Araar, 2014. "Progressivity of Taxes and Transfers: the Mexican Case 2012," Cahiers de recherche 1407, CIRPEE.
    3. Duclos, Jean-Yves, 2006. "Liberté ou égalité?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(4), pages 441-476, décembre.
    4. Manos Matsaganis & Chrysa Leventi, 2011. "The distributional impact of the crisis in Greece," DEOS Working Papers 1124, Athens University of Economics and Business.
    5. Mussa, Richard, 2010. "Poverty and Inequality in Standards of Living in Malawi: Does Religious Affiliation Matter?," MPRA Paper 24438, University Library of Munich, Germany.
    6. Nora Lustig, 2017. "Fiscal Policy, Income Redistribution and Poverty Reduction in Low and Middle Income Countries," Commitment to Equity (CEQ) Working Paper Series 54, Tulane University, Department of Economics.
    7. Alkire, Sabina & Roche, José Manuel & Vaz, Ana, 2017. "Changes Over Time in Multidimensional Poverty: Methodology and Results for 34 Countries," World Development, Elsevier, vol. 94(C), pages 232-249.
    8. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    9. de Figueiredo, Erik Alencar & Ziegelmann, Flávio Augusto, 2010. "Estimating income mobility using census data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(21), pages 4897-4903.
    10. Leventi, Chrysa & Matsaganis, Manos, 2013. "Distributional implications of the crisis in Greece in 2009-2012," EUROMOD Working Papers EM14/13, EUROMOD at the Institute for Social and Economic Research.
    11. Richard Mussa, 2013. "Spatial Comparisons of Poverty and Inequality in Living Standards in Malawi," South African Journal of Economics, Economic Society of South Africa, vol. 81(2), pages 192-210, June.
    12. Ragui Assaad & Caroline Krafft & John Roemer & Djavad Salehi-Isfahani, 2016. "Inequality of Opportunity in Income and Consumption: the Middle East and North Africa Region in Comparative Perspective," Working Papers 1003, Economic Research Forum, revised May 2016.
    13. David E. Sahn & Stephen D. Younger, 2009. "Measuring intra‐household health inequality: explorations using the body mass index," Health Economics, John Wiley & Sons, Ltd., vol. 18(S1), pages 13-36, April.
    14. Dorrit Posel & Michael Rogan, 2012. "Gendered trends in poverty in the post-apartheid period, 1997--2006," Development Southern Africa, Taylor & Francis Journals, vol. 29(1), pages 97-113, March.
    15. Sebastian Levine & Benjamin Roberts, 2013. "Robust Estimates of Changes in Poverty and Inequality in Post-Independence Namibia," South African Journal of Economics, Economic Society of South Africa, vol. 81(2), pages 167-191, June.
    16. Purwono, Rudi & Wardana, Wahyu Wisnu & Haryanto, Tri & Khoerul Mubin, M., 2021. "Poverty dynamics in Indonesia: empirical evidence from three main approaches," World Development Perspectives, Elsevier, vol. 23(C).
    17. Tim Goedemé & Karel Van den Bosch & Lina Salanauskaite & Gerlinde Verbist, 2013. "Testing the Statistical Significance of Microsimulation Results: Often Easier than You Think. A Technical Note," ImPRovE Working Papers 13/10, Herman Deleeck Centre for Social Policy, University of Antwerp.
    18. Levy, Horacio & Nogueira, José Ricardo & Siqueira, Rozane Bezerra & Immervoll, Herwig & O'Donoghue, Cathal, 2010. "Simulating the impact of inflation on the progressivity of personal income tax in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(4), December.
    19. Stephen P. Jenkins & John Micklewright, 2007. "New Directions in the Analysis of Inequality and Poverty," Discussion Papers of DIW Berlin 700, DIW Berlin, German Institute for Economic Research.
    20. Tine Stanovnik & Miroslav Verbic, 2014. "Personal income tax reforms and tax progressivity in Slovenia, 1991-2012," Financial Theory and Practice, Institute of Public Finance, vol. 38(4), pages 441-463.

    More about this item

    Keywords

    personal income tax; annual tax return; tax expenditures; reliefs; horizontal equity; Croatia;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipf:finteo:v:36:y:2012:i:3:p:245-267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martina Fabris (email available below). General contact details of provider: https://edirc.repec.org/data/ijfffhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.