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

<sec><h3>Background</h3>
<p>The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in the period 1993–2020. Between 1993 and 2007, the nominal tax rate was progressive, while from 2008 until the end of 2020, the nominal rate was linear.</p>
</sec>
<sec><h3>Objectives</h3>
<p>The paper aims to analyse if the type of nominal tax rate affects personal income tax progressivity.</p>
</sec>
<sec><h3>Methods/Approach</h3>
<p>The article uses analysis, synthesis, comparison and regression analysis methods. The progressiveness of the tax obligation indicator is used to evaluate the degree of tax progressivity.</p>
</sec>
<sec><h3>Results</h3>
<p>In the context of the analysis of the degree of tax progressivity, personal income tax is more progressive in the period of validity of the nominal linear rate for taxpayers with incomes below the average wage level.</p>
</sec>
<sec><h3>Conclusions</h3>
<p>Since the linear rate has been in force, the government in the Czech Republic has often mistakenly presented that tax rate innovations will ensure that everyone pays the same tax.</p>
</sec>
</abstract>

Background
The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in the period 1993–2020. Between 1993 and 2007, the nominal tax rate was progressive, while from 2008 until the end of 2020, the nominal rate was linear.

Objectives
The paper aims to analyse if the type of nominal tax rate affects personal income tax progressivity.

Methods/Approach
The article uses analysis, synthesis, comparison and regression analysis methods. The progressiveness of the tax obligation indicator is used to evaluate the degree of tax progressivity.

Results
In the context of the analysis of the degree of tax progressivity, personal income tax is more progressive in the period of validity of the nominal linear rate for taxpayers with incomes below the average wage level.

Conclusions
Since the linear rate has been in force, the government in the Czech Republic has often mistakenly presented that tax rate innovations will ensure that everyone pays the same tax.

Does the Type of Nominal Personal Income Tax Rate Affect Its Progressivity? A Case Study from the Czech Republic

Business Systems Research Journal

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

Background
The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in...

Does the Type of Nominal Personal Income Tax Rate Affect Its Progressivity? A Case Study from the Czech Republic

Publicado en línea: 21 sept 2023

Páginas: 93 - 111

Recibido: 24 oct 2022

Aceptado: 04 may 2023

DOI: https://doi.org/10.2478/bsrj-2023-0005

Palabras clave
personal income tax, progression, tax reliefs, tax reform, Czech Republic

© 2023 Michal Krajňák, published by Sciendo

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

Does the Type of Nominal Personal Income Tax Rate Affect Its Progressivity? A Case Study from the Czech Republic

Publicado en línea: 21 sept 2023

Páginas: 93 - 111

Recibido: 24 oct 2022

Aceptado: 04 may 2023

DOI: https://doi.org/10.2478/bsrj-2023-0005

Palabras clavepersonal income tax, progression, tax reliefs, tax reform, Czech Republic

© 2023 Michal Krajňák, published by Sciendo

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

Palabras clave
personal income tax, progression, tax reliefs, tax reform, Czech Republic