| Abstract [eng] |
The aim of the work is to examine the possibilities of personal income tax progressivity in Lithuania. The work consists of three parts. The first part consists of scientific literature analysis, review of key principles of the tax system and their impact on the efficiency of tax collection. The concept of personal income tax and the impact of personal income tax on income inequality are being analyzed. The development of the Lithuanian income tax system, the current Lithuanian personal income tax system and future changes planned are also investigated. The positive and negative consequences of the progressive application of personal income tax are analyzed. The second part describes the methodology of the research carried out in the work, the third part of work consists of research done in accordance to methodology described in second chapter. Research is divided into three parts.. The aim is to reach the goals set for the research and to confirm or reject hypotheses which were raised. The research is divided into three parts. The first part examines the dependence of changes in the country's macroeconomic indicators on changes in the personal income tax system. The regression explanatory analysis method is used in this section. The second part provides a comparative analysis of the application of personal income tax in neighboring countries. The third part of the study attempts to assess the real progressiveness of the Lithuanian personal income taxation system, as well as the possibility to reduce tax liabilities for high-income residents. The study reveals the negative impact of changes in the personal income tax system on the country's macroeconomic indicators. Compared to neighboring countries, Lithuania has a higher tax burden on middle- and slightly higher-income earners. At the end, the conclusions and suggestions are presented to summarize the analyzed scientific literature and the results obtained during the research. |
