<abstract xmlns="http://www.w3.org/1999/xhtml">

The aim of the article is to assess the impact of taxes on poverty and inequality in Ukraine and provide recommendations on how taxation should be used to address problems of inequality and poverty. The research methodology is based on a combination of linear regression and commitment to equity (CEQ) methodology, which was designed by Lustig to analyse the impact of taxation and social spending on inequality and poverty in individual countries. The dataset consists of data from the World Inequality Data Base and data from State Statistic Service of Ukraine.
The analysis shows that income tax reform in Ukraine should not take place in the context of changing tax rates and tax periods but in the context of shifting the tax burden from the poor to the rich and preventing aggressive tax planning. Also, the results of the analysis show that the Ukrainian government’s policy of reducing free education and health services may contribute to poverty if the government does not change its redistributive policies.
The article contributes to the academic literature on the impact of taxation on poverty and inequality in developing countries. The practical results obtained in the paper are useful for developing countries’ governments to design poverty- and inequality-sensitive tax policies.
</abstract>

The aim of the article is to assess the impact of taxes on poverty and inequality in Ukraine and provide recommendations on how taxation should be used to address problems of inequality and poverty. The research methodology is based on a combination of linear regression and commitment to equity (CEQ) methodology, which was designed by Lustig to analyse the impact of taxation and social spending on inequality and poverty in individual countries. The dataset consists of data from the World Inequality Data Base and data from State Statistic Service of Ukraine.
The analysis shows that income tax reform in Ukraine should not take place in the context of changing tax rates and tax periods but in the context of shifting the tax burden from the poor to the rich and preventing aggressive tax planning. Also, the results of the analysis show that the Ukrainian government’s policy of reducing free education and health services may contribute to poverty if the government does not change its redistributive policies.
The article contributes to the academic literature on the impact of taxation on poverty and inequality in developing countries. The practical results obtained in the paper are useful for developing countries’ governments to design poverty- and inequality-sensitive tax policies.

Taxation, Inequality, and Poverty: Evidence from Ukraine

Ukraine Kyiv National Economics University named after Vadym Hetman, Ukraine

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Taxation, Inequality, and Poverty: Evidence from Ukraine"}

The aim of the article is to assess the impact of taxes on poverty and inequality in Ukraine and provide recommendations on how taxation should be used to...

Taxation, Inequality, and Poverty: Evidence from Ukraine

Published Online: Jan 27, 2022

Page range: 1 - 18

DOI: https://doi.org/10.2478/ceej-2022-0001

Keywords
fiscal policy, inequality, poverty, taxation, well-being, Gini coefficient, Ukraine

© 2022 O. Markina, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Taxation, Inequality, and Poverty: Evidence from Ukraine

Published Online: Jan 27, 2022

Page range: 1 - 18

DOI: https://doi.org/10.2478/ceej-2022-0001

Keywordsfiscal policy, inequality, poverty, taxation, well-being, Gini coefficient, Ukraine

© 2022 O. Markina, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
fiscal policy, inequality, poverty, taxation, well-being, Gini coefficient, Ukraine