Acta academica karviniensia 2024, 24(2):54-67 | DOI: 10.25142/aak.2024.011

The Impact of the Adoption of the Rehabilitation Tax Package in the Czech Republic on the Progressivity of Personal Income Tax

Jiří Slezák
Vysoká škola báňská-Technická univerzita Ostrava, Ekonomická fakulta, Sokolská třída 33, 701 21 Ostrava

The article focuses on an overview of selected tax changes in the Czech Republic from 2024 as part of the adoption of the consolidation package. The article further deals with the analysis of the tax progressivity of the tax system of the Czech Republic in 2023 and 2024. The aim of the article is to describe selected tax changes in the Czech Republic and to evaluate the impact of changes in interval progressivity. Calculations are made on the basis of the effective tax rate, the progressivity of the average rate, the progressivity of the tax obligation and the progressivity of the after-tax income of the taxpayer receiving income from a dependent activity. 6 hypothetical situations of taxpayers are analyzed. Some of the tax changes under discussion include an increase in the corporate income tax rate, the abolition of the taxpayer discount, the limitation of the spouse discount, the introduction of a rate for employee health insurance, an increase in the tax on real estate, changes in work done outside of employment or an increase in social insurance rates for self-employed only. The results of the interval progressivity show that the highest tax progressivity is for low-income taxpayers and it decreases with increasing gross income. Taxpayers with child have interval progressivity and a lower effective tax rate. Furthermore, in 2024 compared to 2023, due to tax changes, the indicators of interval progressivity will change.

Keywords: interval progressivity, personal income tax, tax burden.
JEL classification: H24, K34

Received: July 4, 2024; Revised: July 10, 2024; Accepted: February 5, 2025; Published: February 13, 2025  Show citation

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Slezák J. The Impact of the Adoption of the Rehabilitation Tax Package in the Czech Republic on the Progressivity of Personal Income Tax. Acta academica karviniensia. 2024;24(2):54-67. doi: 10.25142/aak.2024.011.
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