ABSTRACT
Purpose: The purpose of this research is to see if total direct taxes (TDT) affect the growth of the country's income and well-being or stagnation and gaps based on the variables raised: Corporate Income Tax (CIT), Personal Income Tax (TAP), Property Taxes (PT), Other Direct Taxes (ODT), as well as to explore which variables had a greater impact on income growth, welfare or gaps before and during the Covid-19 pandemic. Theoretical framework: First, this research brought a new approach to explore the income statement through total direct taxes before and during the Covid-19 pandemic, then analyzed which variables there were increases in income, gaps, or welfare. Finally, an overview is given on how to promote and continuously increase state revenues and reduce gaps through TDTs. Design/methodology/approach: The data were collected at the local and central levels in the state of Kosovo based on the audited financial and economic reports for the period (2014-2021) as well as through interviews with officials and directors in the finance department and with the Minister of Finance during 2017-2018, analyzing in detail all financial items for direct tax variables and their impact on government revenues, on the country's well-being or economic-financial gaps through descriptive analysis, factorial analysis, reliability analysis, multiple regression analysis using SPSS version 23.0 for Windows. Findings: Based on analyzes such as PCA Matrix Loading Factors, PCA Model Summary- Multiple Linear Regression, Coefficients- TDT, the results showed that the variables [(CIT=98%, R=.980, Sig=.000, F=148,854), (PIT=99%, R=.987, Sig.=000, F=220,841), (PT=90%, R=.902, Sig.=.000, F=26,240)] are quite important and that they have influenced the increase in income and well-being of the country, while the variable (OTD=39%, R=.390, Sig.=000, F=1.079) has not influenced the well-being of the country during this period and that there are still some gaps that need to be improved before and during the Covid-19 pandemic. Therefore, greater weight in the collection of (TDTs) and an increase in well-being have been shown (PIT=.975, Cons=.136, Acu=99%), while gaps have been shown (ODT: Cons=.209, Acu =39%). It is recommended that the state should be careful in collecting revenues from (TDT) and especially (OTDs). Research, Practical & Social implications: The limitations and implications of this research are that the study period is (8) years, the number of variables is limited to only (4) with their sub-variables (48), and it is only an analysis of one country. Therefore, for further analysis, a larger number of countries, periods, and variables can be taken into the research. Originality/value: It will help countries to see where there is an increase in income and well-being and where there are gaps and a decrease in income and based on this, they should be careful in creating policies to encourage and increase income through (TDTs) © 2022 AOS-Estratagia and Inovacao. All rights reserved.
ABSTRACT
One of the major economic reaction of the European union on Covid-19 was to create a programme called Next Generation EU. Due to the programme, national governments of member states should prepare and approve a set of reforms. Slovak government drafted a document labelled as Modern and successful Slovakia. The document has included a prepared public finance reform which among other things contains tax code changes which are presented as growth-enhancing. It takes basis from believing that some taxes are more growth-reducing than others. These are taxes mostly levied on labour and other productive doing. If there is a change within the structure of taxation, which goes from direct taxes to others, it should promote economic growth according to the arguments using in public debate. The goal of this paper is to identify such tax reforms employing a novel World Tax Index dataset in the cross-country sample in the period from 2000 to 2018.
ABSTRACT
The growing economic inequality around the world is recognized as a global problem of mankind. At the same time, the key tool for reducing inequality and ensuring the achievement of sustainable development goals is the taxation system given its distributive function. That is why this paper puts forward and proves a scientific hypothesis according to which direct taxation has a significant impact on economic inequality, with its scale and sphere depending on the level of economic development and the specific architecture of the tax system adopted in a particular country. The study relies on data from 28 European Union countries, including the United Kingdom, whose tax systems are not identical but harmonized in accordance with European Union directives, the same as the legislation in other economic sectors. Accordingly, it can be concluded that similar institutional characteristics are present. We have used the method of two-stage cluster analysis, which is meant for identifying the natural splitting of the mass of data into groups, then carried out regression analysis and built some models. The contribution of the study is revealing a number of important regularities that are significant for characterizing the dependence of income inequality on direct taxation as well as formulation recommendations for improving the tax policies of European Union countries, with the potential of policy implications. The results obtained can play a significant role in the development and further harmonization of tax systems and resolving the global problem of increased inequality within and between countries.