The impact of inflation on the personal income tax burden

In the design of personal income tax, it is important that, in addition to the proper formation of its individual design elements, the legislator also takes care of their adequate protection against inflation. The absence of such regulation leads to a disproportionately high fiscal burden. This is d...

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Main Author: Marcin Burzec
Format: Article
Language:English
Published: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego 2024-12-01
Series:Acta Iuris Stetinensis
Subjects:
Online Access:https://wnus.usz.edu.pl/ais/pl/issue/1476/article/21520/
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author Marcin Burzec
author_facet Marcin Burzec
author_sort Marcin Burzec
collection DOAJ
description In the design of personal income tax, it is important that, in addition to the proper formation of its individual design elements, the legislator also takes care of their adequate protection against inflation. The absence of such regulation leads to a disproportionately high fiscal burden. This is due to the fact that often the design elements of the tax are expressed in terms of amounts. Thus, the lack of indexing mechanisms in income tax leads to erosion of nominally expressed design elements. This undermines the fair burden of this tax. The purpose of this article is to analyse how legal regulations safeguard proper protection of taxpayers against erosion of nominally established design elements of the Polish personal income tax. With relatively low inflation for more than two decades, this problem had not been noticeable. Only the high inflation rate in the European Union has once again drawn attention to this very important issue.
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spelling doaj-art-e1326db5bb60467fb90b65e002148c3e2025-08-20T03:41:53ZengWydawnictwo Naukowe Uniwersytetu SzczecińskiegoActa Iuris Stetinensis2083-43732024-12-015110.18276/ais.2024.51-04The impact of inflation on the personal income tax burdenMarcin Burzec0John Paul II Catholic University of Lublin, PolandIn the design of personal income tax, it is important that, in addition to the proper formation of its individual design elements, the legislator also takes care of their adequate protection against inflation. The absence of such regulation leads to a disproportionately high fiscal burden. This is due to the fact that often the design elements of the tax are expressed in terms of amounts. Thus, the lack of indexing mechanisms in income tax leads to erosion of nominally expressed design elements. This undermines the fair burden of this tax. The purpose of this article is to analyse how legal regulations safeguard proper protection of taxpayers against erosion of nominally established design elements of the Polish personal income tax. With relatively low inflation for more than two decades, this problem had not been noticeable. Only the high inflation rate in the European Union has once again drawn attention to this very important issue.https://wnus.usz.edu.pl/ais/pl/issue/1476/article/21520/personal income taxability to paytax fairnessinflationindexation mechanism
spellingShingle Marcin Burzec
The impact of inflation on the personal income tax burden
Acta Iuris Stetinensis
personal income tax
ability to pay
tax fairness
inflation
indexation mechanism
title The impact of inflation on the personal income tax burden
title_full The impact of inflation on the personal income tax burden
title_fullStr The impact of inflation on the personal income tax burden
title_full_unstemmed The impact of inflation on the personal income tax burden
title_short The impact of inflation on the personal income tax burden
title_sort impact of inflation on the personal income tax burden
topic personal income tax
ability to pay
tax fairness
inflation
indexation mechanism
url https://wnus.usz.edu.pl/ais/pl/issue/1476/article/21520/
work_keys_str_mv AT marcinburzec theimpactofinflationonthepersonalincometaxburden
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