Proportional or progressive tax?

The tax system and tax policy are one of the most important features of a sovereign state and are an integral part of the overall economic policy pursued by the state and continue to influence macroeconomic movements and the size of macroeconomic indicators in that country.
The tax system of the Republic of Macedonia is a combination of different types of taxes that are suitable for achieving the objectives of the tax policy.
Citing Article 33 of the Constitution of the Republic of Macedonia, which reads: "Everyone is obliged to pay taxes and other public duties and to participate in the settlement of public expenditures in a manner determined by law." In general, taxes are public revenue arising from the obligation of all taxpayers to the state - individuals and legal entities, to allocate part of their income, turnover or property. Taxes are coercive and mandatory monetary duties imposed by the state by law, without direct contravention, and which are further used to finance public expenditures, of which public functions and state needs are first financed, and then used to achieve certain economic and social goals.
The theory recognizes two types of tax rates: progressive and proportional. Each with its own advantages and disadvantages. Some are more equitable while others are proportionate, easier to calculate and more promising. Within the tax system, taxes can be divided into direct and indirect.
In terms of economic fairness, direct taxes are more appropriate, and in terms of economic efficiency, indirect taxes occupy that place.
We also come to the fact that economic theory recognises taxes as a destructive element of market resource allocation because they affect the way agents behave.
The advantages and disadvantages of progressive or proportional taxation as well as their application in the Republic of Macedonia will be the subject of analysis of this paper.

Пропорционални или прогресивни стапки во РМ


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