| Title |
Tax Payment Gap And Tax Morale In Euro Area Countries / |
| Authors |
Rutkauskas, Virgilijus |
| ISBN |
9786094598555 |
| Full Text |
|
| Is Part of |
Development In Economics: Theory And Practice. 13th International Prof. Vladas Gronskas Scientific Conference for Young Researchers. Reviewed Selected Papers.. Vilniaus universiteto Kauno fakultetas, 2017. p. 5-18.. ISBN 9786094598555 |
| Keywords [eng] |
tax morale ; tax payment gap ; public goods ; logit-probit analysis ; shadow economy |
| Abstract [eng] |
This article investigates theoretical and practical aspects of tax payment gap and tax morale in euro area countries. Tax payment gap among euro area households is investigated by applying “macro approach”, where the main components are shadow economy and tax rate. The attitude of households on tax payment – whether to pay taxes or not – is assessed quantitatively by employing dichotomous logit-probit regression analysis. Research is based on household level data received from World Values Survey and European Values Study. The results suggest that uncollected taxes of households constitute nearly one fifth of total general government revenues in euro area and counts nearly one tenth of GDP. The main issues behind weak tax morale are corruption, disrespect to the country. Additionally, tax morale is significantly affected by factors like age, gender, religiousness, income and education. Article concludes on possible policy options to increase tax morale as growth of population willing to pay taxes by 1 p.p. will result in increase of tax income by nearly 21 billion euros per year. |
| Published |
Vilniaus universiteto Kauno fakultetas, 2017 |
| Type |
Conference paper |
| Language |
English |
| Publication date |
2017 |
