H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxesReturn

The article aims to compare the Member States of the European Union in the field of social insurance over the selected period. In this context, it is necessary to identify the trend of changes in the period 2007–2019. The article answers two questions. First, whether there is a growth in the share of social insurance in the tax systems or not. The second question concerns the approximation of the Member States in the field of social insurance. The Eurostat database is a source of indicators that represent social insurance in the tax system of the individual Member States of the European Union. We used Ward’s method of cluster analysis to evaluate the annual results. Three indicators are subject to cluster analysis. The result of our work comprises four groups of the Member States of the European Union. Each group consists of similar states. Our results confirm that the country’s historical position and traditions influence the established social insurance system. The European Union law ensures social security coordination. It mainly affects migrants.

The paper aims to assess effects of the tax wedge on the employment rate in the Czech Republic. To investigate the impact of the tax wedge on the employment growth, we used a one-equation cointegration model based on the Engle-Granger theorem on OECD data. The results are surprising, because of an unexpected positive relationship between endogenous and exogenous variables. The paper itself is divided into five main parts. The first part is an introduction to the topic and a review of the literature, the second part is on data, the third part is on the statistical methodology and the last two parts cover results and the final conclusion.

Measurement of taxation of individuals is currently an interesting topic, as there is a number of people who can perform their job from any place in the world and their net income is one of the most important criteria on the basis of which their final decision is being made. Level of labour taxation is also important for international companies, which consider the location of their business and one of their important criteria is labour taxation. Provided the companies want to pay their employees equal net wage in each country, high labour taxation increases their costs. This also means that the labour taxation is related to the country's competitiveness. However, there is not just one way of measurement of labour taxation, because one can distinguish between nominal, average, effective and marginal tax rates on labour and there is also the tax wedge which could measure the labour taxation. The aim of this paper is to re-calculate numbers for the implicit tax rate (tax wedge) on labour in the EU countries for the newer period based on the Eurostat data according to the Mendoza et al. (1994) and Wolff (2005) methodology. These values will be in turn compared with data on the tax wedge measured by the Eurostat using their own methodology. One could expect that each methodology could give slightly different results, but these results should be similar. If there are differences between these values, the decision of individuals could be incorrectly affected by different values of labour taxation.

This paper analyzes the relationship between tax variables and foreign direct investments. There are many studies with analysis of influence of corporate income tax, but only few with focus on individual taxation and social security contributions.The analysis is done for the decision if do FDI or do not do and about decision about amount of FDI. On the decision about realization of FDI has impact GDP per capita of home and partner country and distance between countries. GDP per capita of home country increase probability of location of FDI, GDP per capita and distance decrease the probability of the location of FDI in the partner country. Based on the results, on the amount of FDI have positive impact GDP variables and other variables - e.g. differences in corporate tax rate. Negative impact has distance between countries. The impact of social security payment is not obvious, because it differs based on the fact of average wage of employee (for higher than average earnings the relationship is negative, for average earnings the relationship is positive).

This paper designs and tests a comprehensive model, solved by statistical simulation, which describes and quantifies the effect of the tax system and lifelong income characteristics on the effective tax burden of a population or its segment. In the present application the model is structured and calibrated to analyse the category of employed persons in the Czech Republic. The Czech tax and levy system is shown to be mildly progressive, with a steep digression for very high incomes. It is also shown how the initial income endowment, lifelong income volatility and the minimum wage level impact the structure of effective tax rates, as well as expected unemployment.

Governments usually try to use fiscal instruments to support the families with children. However, fiscal instruments also affect the work effort and labour demand. Problems associated with (de)stimulantive effects of taxes, insurance premia and benefits arise, among other things, also due to the fact that because of various reasons, these instruments are not effectively coordinated and often operate in opposite directions. The article analyses changes in fiscal instruments of a support of the families with children in developed countries over the past decade and focuses on the development of selected tax-benefit indicators that describe the fundamental characteristics of the taxation of the families with children. Given that the universal, family-type social benefits often take the form of negative taxes, the paper includes also this type of family benefits. The results of the analysis show that the vast majority of developed countries strongly support the families with children via fiscal instruments. It also turns out that over the past decade the governments have rather reduced effective taxation of the families with children. During the last two years, however, some countries recorded an increase in the taxation of families, including the families with children. Countries that have over the past ten years successfully sought to support the families with children relied on progressive reliefs or benefits targeted at the families with more than two children.