| Abstract [eng] |
Progressive Taxation in the Republic of Lithuania Justina Sušinskaitė Master`s thesis analyses the topic of the progressive taxation by examining doctrine, laws, their drafts, explanatory notes, reports of the international organizations and other sources. It is often discussed whether the progressive taxation model is the most effective in achieving certain fiscal, economic and social objectives. This topic is particularly relevant when it comes to personal income taxation. The work analyses the concept of the progressive taxation, its advantages and disadvantages, its elements in the tax system of the Republic of Lithuania, and assesses the possibility to establish progressive rates by taxing all personal income. The work aims to reveal as much as possible the reasons and objectives of the legislator by establishing certain elements of progressive taxation in real estate, heritage and personal income taxation. The main ideas of the initiators of draft laws are presented to increase the income of the national budget and reduce income inequality in society by establishing progressive rates in personal income taxation. The most frequent positive and negative effects of progressive taxation on the tax system, economic growth and social policy of states defined in the doctrine are identified in the work. The work also presents the potential consequences of the mentioned factors by establishing progressive tax rates in the personal income taxation. The analysis concludes that taxation of all personal income at progressive tax rates poses a potential threat to economic growth of the country and collection of higher budget revenues. The idea that the introduction of progressive taxation in personal income taxation will reduce social inequalities prevailing in society is often mistaken. The examination of scientific doctrine leads to the conclusion that the tax reform and public spending policy are a more effective mean to address this social problem. |
