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Flat tax
Spišský, Jakub ; Marková, Hana (advisor) ; Boháč, Radim (referee)
RESUMÉ Application of flat tax in the Slovak Republic causes better allocation of income to state budget and reduces rate of repartitionings of income in the society. Moreover, from a long-time aspect, it stimulates economic growth and creation of investments. From an individual's and companies' point of view, the flat tax eliminates progressive taxation, which up to now affected mainly those who enjoyed success - those with higher income in the society. On the other hand, the flat tax implementation requires that the more successful companies or individuals pay less and the less successful ones pay more than they would under the progressive tax system, for the state to raise the same amount of money. Implementation of the flat tax instead of the progressive taxationis an important step in the right direction, but deffinitely not the final station. There is still a lot of discussion going on about the fairness of this form of taxation. It is not entirely true that everyone who works and earns income deduct from their income 19%. The reason for this is the system of exemptions - nondeductable minimum and the tax bonus for a child, which makes it possible to reach a negative tax. The higher the nondeductable minimum, the higher the taxation differences. Flat rate significantly decreased progressivity in the...
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