Acta academica karviniensia 2015, 15(1):5-18 | DOI: 10.25142/aak.2015.001

WHAT IMPACT DO SINGLE TAXES HAVE ON THE CONVERGENCE OF TAXATION IN THE EU?

Monika Bušovská
University of Economics Prague, Faculty of finance and accounting, Department of Public Finance, Winston Churchill square 4, 130 67 Prague 3, Czech Republic, e-mail: xbusm04@vse.cz

Increasing globalization and the European Union enlargement have an influence not only on human culture or politics but mainly on the economies of the countries in which integration is at different levels of their development. This paper deals with the convergence of taxation in the European Union. The paper proposes to evaluate and quantify the impact of the single shares of the taxes and tax competition on the effective tax burden convergence in the EU 28 countries between the years 1965 - 2011. The panel regression model reports a statistically significant positive impact of all residuum on tax convergence in the European Union. The most important determinants of tax convergence are tax competition and property taxes. All models meet diagnostic tests and are econometrically robust. Results can be considered as relevant with sufficient information capability.

Keywords: convergence, European Union, tax competition, tax mix, tax quota, taxes
JEL classification: H2

Received: February 25, 2015; Accepted: May 27, 2015; Published: March 30, 2015  Show citation

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Bušovská M. WHAT IMPACT DO SINGLE TAXES HAVE ON THE CONVERGENCE OF TAXATION IN THE EU? Acta academica karviniensia. 2015;15(1):5-18. doi: 10.25142/aak.2015.001.
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