Progressive Tax

VS

flat Tax

Taeyang21.1.2016

What percentage of VAT tariff on food (in NL)???

A:

B:

C:

D:

3%

6%

9%

21%

SOURCE: BELASTINGDIENST

INDEXDefinition of each tax sys-

tem What is the main question?

Evaluate the criteria with opin-ions

Ways to solve the question con-clusion

Background Informa-tion

Flat tax – a system that reflects the constant tax rate regardless of income (McBride, 2012).

Progressive tax – a system that ap-plies different tax rates, depend-ing on income (Ungar, 2015).

Background Information

Research Question!

How should flat and progressive taxation systems be adopted for the whole society.

To improve the society through implement-ing

taxation systems harmoniously

Criteria

How to eval-uate?

Govern-ment Rev-

enue

Organisa-tional mo-tivation

Government revenue

Flat tax LowerRev-enue Lower

Investments in

Public infra

Social well-being

pro-gressive

tax

(Murphy, 2012)

Greater RevenueGreater

Investments in

Public infraSocial well-be-

ing

Organisational mo-tivation

Flat tax

Low tax rates

Encourage Firm’s in-vestments

Economic growth

pro-gressive

taxRelatively

HighTax rates

Demotivatefirms’invest-

ments

Economic de-pression

(Saez & Piketty, 2013)

Personal viewFlat tax

pro-gressive

tax

Flagres-sivetax

Have firms invest in social infra for the society.

Grant companies tax exemptions or discounts on social-improvement areas

ConclusionRQ: How should flat and progressive taxation systems be adopted for the whole society?

To combine both harmoniously to improve the social well-being.

Further research: how do governments grant tax discounts and

exemptions?

BIBLIOGRAPHY Belastingdienst, not known, Tax Tariffs Retrieved from: http://

www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/v at/vat_in_the_netherlands/calculating_vat/vat_tariffs

McBride William, (2012, December 18). What is the Evidence on Taxes and Growth? Retrieved from: http://taxfoundation.org/article/what-evidence-taxes-and-growth

Murphy, R. (2012, May 22). Flat tax - the great way to help the poorest pay for the richest. Retrieved from: http://www.theguardian.com/commentisfree/2012/may/22/flat-taxes- taxpayers-alliance

Saez, E., & Piketty, T. (2013, October 23). Why the 1% should pay tax at 80%? Retrieved from: http

://www.theguardian.com/commentisfree/2013/oct/24/1percent-pay-tax-rate-80percent 

Ungar, R. (2015, November 11). A Progressive's Case For Moving To The Flat Tax-Maybe. Retrieved from: http://www.forbes.com/sites/rickungar/2015/11/11/a-progressives- case-for-moving-to-the-flat-tax-maybe/#2715e4857a0b166d0b992246