Увійти 
|
HOME PAGE | |
№ 2019/2
1Institute for Economics and Forecasting, NAS of Ukraine
Tax benefits to families with children
Economy and forecasting 2019; 2:85-98 | https://doi.org/10.15407/econforecast2019.02.085 |
ABSTRACT ▼
The article deals with theoretical and empirical research of the influence of social tax benefits (allowances) on welfare of families with children in Ukraine and worldwide. International comparisons of basic features and requirements that serve to qualify recipients of the social tax allowance such as income threshold; family size and composition (including relationships, number and age of children); amount of tax deduction (social tax allowance); a tax wedge on labour; untaxed income are carried out.
Basic advantages of tax benefits in comparison with direct state aid are generalized in terms of welfare improvement for families with children. Tax benefits are argued to work better as incentives for parents to increase their labour efforts. In addition, they also decrease pressure on working population, lower demand for government expenditures and eliminate problem of "budget freeriders".
Earned income tax credit (EITC) in the USA has been analyzed regarding whether it is effective in targeting social and fiscal issues in this country. The study concluded that EITC assists a wide scope of low-income families with children and thus establishes high income tax progressivity in different brackets in the USA. The special attention was paid to the provisions of EITC and other in-work tax benefits under the system of married couple (joint) tax filing whose introduction is being currently debated in Ukraine with the aim to promote more socially-oriented tax system.
The efficiency of tax benefits for families with children in Ukraine has been challenged within the analysis of legislative provisions of social tax allowance (STA) and estimation of STA influence on the welfare of low-income (poor) families with children. We have found evidence that STA in Ukraine is characterized with restrictions that make a large group of families with children ineligible and thus a conclusion was made that STA discriminates against those who are really in need. Furthermore, insufficient amount of deduction within STA seems inadequate in order to reduce poverty or increase income tax progressivity. Consequently, some recommendations in order to improve STA in Ukraine are suggested.
Keywords: tax benefits, tax social allowance, tax credit, income tax
JEL: H24, H29, H31
Article in English (pp. 85 - 98) | Download | Downloads :584 |
REFERENCES ▼
2. OECD Family Database: Income inequality and the income position of different household types / OECD; Social Policy Division; Directorate of Employment, Labour and Social Affairs. URL: www.oecd.org/els/soc/CO_2_1_Income_inequality_by_household_type.pdf
3. Лютий І.О., Іванюк В.Е. Оподаткування індивідуальних доходів в Україні: актуальні питання модернізації. Фінанси України. 2019. № 1. C. 30–49. doi: doi.org/10.33763/finukr2019.01.030
4. Коломієць О.О. Монобатьківські сім'ї: соціальний захист і самозабезпечення. Стратегічні пріоритети. 2009. № 4. С. 148–156.
5. Крисоватий А.І., Василевська Г.В. Новітня парадигма преференційного оподаткування: монографія. Київ: Центр учбової літератури, 2013. 258 с.
6. Юрій С.І., Кізима Т.О. Оподаткування доходів сім'ї: сутність та необхідність запровадження в Україні. Регіональна економіка. 2010. № 3. С. 165–171. URL: nbuv.gov.ua/UJRN/regek_2010_3_22
7. Kleven Henrik Jacobsen. How Can Scandinavians Tax So Much? Journal of Economic Perspectives. 2014. № 28(4). Р. 77–98. doi: doi.org/10.1257/jep.28.4.77
8. Economic Report of the President 2017. URL: www.gpo.gov/fdsys/pkg/ERP-2017/pdf/ERP-2017.pdf
9. Tax wedge decomposition. OESD.Stat URL: stats.oecd.org/viewhtml.aspx?datasetcode=TXWDECOMP&lang=en
10. OECD Taxing Wages 2018. Special feature: Differences in the disposable incomes of households with and without children. P. 33–46. doi: doi.org/10.1787/tax_wages-2018-en
11. Соціальний звіт за 2018 рік / Міністерство соціальної політики України. 2019. 64 с. URL: www.msp.gov.ua/news/17003.html
12. Фролова Н.Б. Податкове навантаження на працю в Україні. Вісник Хмельницького національного університету. 2006. Т. 2 (84). № 5. С. 45–50.
13. Family tax reliefs and benefits in the EU / PwC. November 2015. URL: www.pwc.pl/pl/pdf/family-tax-reliefs-and-benefits-in-the-eu.pdf
14. Levy H., Lietz Ch., Sutherland H. Alternative tax-benefit strategies to support children in the European Union. Euromod working paper July 2005. No. EM10/05. 37 p.
15. Wages and labour costs / EUROSTAT Statistic Explained. URL: ec.europa.eu/eurostat/statistics-explained/index.php/Wages_and_labour_costs
16. Family tax reliefs and benefits in the EU countries / PwC. 2016. URL: www.pwc.pl/pl/pdf/Profamily_reliefs_2016_PwC_presentation.pdf
Events calendar
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 |
8 | 9 | 10 | 11 | 12 | 13 | 14 |
15 | 16 | 17 | 18 | 19 | 20 | 21 |
22 | 23 | 24 | 25 | 26 | 27 | 28 |
29 | 30 |