Elasticity of taxable income. A case study for the Czech Republic

Kateřina Gawthorpe

Acta Oeconomica Pragensia, 2015, vol. 2015, issue 3, 18-29

Abstract: Elasticity of taxable income has increasingly become an important subject matter for economists in recent times. This study provides an estimate for the Czech Republic by exploiting panel data for corporate income tax rates between 2004 and 2009. The severity of the tax evasion and avoidance issue in this country triggers a question about the existence of the elasticity itself. The uniqueness of this study also stems from its focus on proportional tax rates while other influential studies examine this subject for progressive taxation. The result of this research supports a hypothesis about indifference between taxable incme decision and the size of the tax rate; about fifty percent of the observations in the sample are not subject to taxation. The high level of tax avoidance could explain such an outcome intensifying the necessity to fight this fiscal policy phenomenon.

Keywords: taxable income; elasticity; corporate income tax; Czech Republic (search for similar items in EconPapers)
JEL-codes: C23 H21 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://aop.vse.cz/doi/10.18267/j.aop.473.html (text/html)
http://aop.vse.cz/doi/10.18267/j.aop.473.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlaop:v:2015:y:2015:i:3:id:473:p:18-29

Ordering information: This journal article can be ordered from
Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://aop.vse.cz

DOI: 10.18267/j.aop.473

Access Statistics for this article

Acta Oeconomica Pragensia is currently edited by Klára Šimůnková

More articles in Acta Oeconomica Pragensia from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().