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Dualism of taxation. Changes of long run welfare tax and its linkage with wellbeing
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Date Issued | Start Page | End Page |
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2016 | 158 | 167 |
The article is orientated towards discussion of taxation aims and consequences. The authors argue that any tax is aimed for creation of welfare in the society because they play a transfer role. There is no defi nition of welfare taxes in economic literature. According to the authors welfare taxes are individual consumption, social security and wealth taxes related to the welfare of today and tomorrow. Long-run welfare tax (like excise, property tax, capital tax, etc.) is related with welfare in a long run. In Nordic countries where tax income level is higher wealth tax (property tax) are of bigger importance. In Baltic countries excise tax revenue has a bigger share. The authors perform panel regression that aims to test statistically the relation between welfare tax and wellbeing in the countries. The econometrical results prove a statistically signifi cant but weak negative relationship between the variables. It suggests that higher welfare taxes led to lower wellbeing of the society.