A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice

This research investigates the effectiveness of progressive and proportional tax systems in promoting social justice from the perspectives of tax law and accounting. Each system presents its own advantages and disadvantages. While progressive taxation is considered more vertically equitable, it may...

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Main Authors: Muh. Akbar Fhad Syahril, Hamida Hasan
Format: Article
Language:English
Published: Faculty of Law Universitas Lampung 2024-10-01
Series:Administrative and Environmental Law Review
Subjects:
Online Access:https://jurnal.fh.unila.ac.id/index.php/aelr/article/view/3479
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author Muh. Akbar Fhad Syahril
Hamida Hasan
author_facet Muh. Akbar Fhad Syahril
Hamida Hasan
author_sort Muh. Akbar Fhad Syahril
collection DOAJ
description This research investigates the effectiveness of progressive and proportional tax systems in promoting social justice from the perspectives of tax law and accounting. Each system presents its own advantages and disadvantages. While progressive taxation is considered more vertically equitable, it may induce economic distortions—inefficiencies that disrupt market dynamics and prevent economic agents from maximizing social welfare. In contrast, proportional taxes are simpler and more efficient but are less equitable in their distribution of the tax burden. This study identifies critical challenges, including weak law enforcement characterized by inconsistent application of laws and a tendency for those in power to evade accountability, as well as low taxpayer compliance and discrepancies between tax law and accounting standards. To achieve optimal social justice, this research advocates for a hybrid approach that integrates elements from both tax systems, harmonizes regulations, and enhances taxpayer compliance through improved law enforcement and public education initiatives.
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publisher Faculty of Law Universitas Lampung
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spelling doaj-art-c4e8c0981ad64ca294c32e1779eb6ee52025-08-20T03:01:47ZengFaculty of Law Universitas LampungAdministrative and Environmental Law Review2723-24842745-93302024-10-01529710610.25041/aelr.v5i2.34792209A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social JusticeMuh. Akbar Fhad Syahril0https://orcid.org/0000-0001-6171-4275Hamida Hasan1https://orcid.org/0009-0001-2327-7999Institut Ilmu Sosial Dan Bisnis Andi SapadaInstitut Ilmu Sosial dan Bisnis Andi SapadaThis research investigates the effectiveness of progressive and proportional tax systems in promoting social justice from the perspectives of tax law and accounting. Each system presents its own advantages and disadvantages. While progressive taxation is considered more vertically equitable, it may induce economic distortions—inefficiencies that disrupt market dynamics and prevent economic agents from maximizing social welfare. In contrast, proportional taxes are simpler and more efficient but are less equitable in their distribution of the tax burden. This study identifies critical challenges, including weak law enforcement characterized by inconsistent application of laws and a tendency for those in power to evade accountability, as well as low taxpayer compliance and discrepancies between tax law and accounting standards. To achieve optimal social justice, this research advocates for a hybrid approach that integrates elements from both tax systems, harmonizes regulations, and enhances taxpayer compliance through improved law enforcement and public education initiatives.https://jurnal.fh.unila.ac.id/index.php/aelr/article/view/3479progressive taxationsocial justiceharmonization of tax law
spellingShingle Muh. Akbar Fhad Syahril
Hamida Hasan
A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice
Administrative and Environmental Law Review
progressive taxation
social justice
harmonization of tax law
title A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice
title_full A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice
title_fullStr A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice
title_full_unstemmed A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice
title_short A Comparative Research on the Effectiveness of Progressive versus Proportional Tax Systems in Enhancing Social Justice
title_sort comparative research on the effectiveness of progressive versus proportional tax systems in enhancing social justice
topic progressive taxation
social justice
harmonization of tax law
url https://jurnal.fh.unila.ac.id/index.php/aelr/article/view/3479
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