Péter Ákos Bod

Institutions of Economic Policy

A Comparative Analysis

Tax policy issues

The functional breakdown of a large number of taxes that people pay (see Chart 5) gives us a broad idea about how a particular tax system allocates the tax burden on society. You take home less after having paid all labour-related taxes – and you are angry. In order to avoid inflicting too hard taxes on the working population, the state may decide to place the burden on firms, banks, and the owners of wealth in its efforts to collect the funds needed to run the government. In short, they tax the rich, they tax capital. This seems to be a rather social attitude to taxation. Unfortunately, this type of taxation has serious drawbacks, too. Businesses placed under heavy tax burdens cannot afford to pay high wages, for instance. When taxes eat into their profits, firms invest less and grow a bit slower, thus, economic growth and employment may suffer. Tax, in the final accounts, is a deduction of either income or profit, and it will negatively affect those who bear them. Economic agents will change their behaviour by trying to mitigate its negative effects, even by taking steps to avoid the burden.

Tartalomjegyzék

Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2020

ISBN: 978 963 059 970 2

Gazdaság

The reader is introduced to the purpose, structure, and organizational features of the most important institutions of market economy, such as the Treasury (Ministry of Finance), central (national) bank, bodies responsible for structural changes, supervision of competition, and regulators of strategic industries. The focus of the book is on open trade dependent states, with particular emphasis new member states of the European Union where the institutional order has been shaped by legacies of previous era as well as by policy transfer and policy advice through membership in EU, OECD, IMF and other international institutions. The bulk of the book deals with the comprehensive analysis of institutions of fiscal, monetary, competition, social, spatial policies, and with the emerging trends of new practices.

Hivatkozás: https://mersz.hu/bod-institutions-of-economic-policy//

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