| Abstract [eng] |
Master's thesis on "Income tax models in global practice. The Lithuanian situation. Comparison" discusses the models of income taxation prevailing in the world practice. The thesis examines the planned and global forms of the system and shows how the tax systems that we know today have developed. The analysis of tax systems reveals that the most common system of income taxation in global practice is the dualist system. Income derived from employment or its equivalent is usually subject to a progressive rate, while income derived from capital is more often subject to a proportional rate. This analysis of scholarly work reveals that the application of the proportional rate is a more efficient and effective means of collecting revenue in developing countries where the tax administration system is weaker and the informal economy thrives. However, progressive taxation helps countries to move towards horizontal and vertical equity and promotes social equality. It is also observed that legislators tend to provide more tax incentives when progressive rates are envisaged. The paper compares the tax systems of Germany, the United States of America, Ukraine and Lithuania, showing their differences and similarities. Most countries distinguish between capital and labour income and tax them at different rates. The analysis of the tax systems of Lithuania and other countries, taking into account the reports of the European Commission and the World Bank, shows that Lithuanian residents' non-corporate income is taxed at only two rates, which leads to the conclusion that the application of more categorised rates is appropriate. |
