D14 - Household Saving; Personal FinanceReturn

The paper, based on primary research and evaluation of data from the Financial Administration of the Czech Republic, evaluates housing support in the form of tax deduction of mortgage interest from the tax base in the Czech Republic. Research has shown that this support undermines horizontal and vertical tax fairness and excludes assistance to taxpayers with incomes below the taxable amount. Housing support is not conceptual and lacks control and feedback mechanisms. However, distributional effects need to be taken into account when considering tax reforms, especially for indebted and cash-strapped households. However, we do not recommend completely canceling the tax deduction, which would limit household budgets and young families' access to their own housing. Younger taxpayers mainly use the tax deduction, and the abolition of the tax deduction would increase housing costs for these taxpayers.

The paper focuses on tax relief individuals that are used to support other desirable public policy. They may represent hidden subsidies in the tax system, reducing tax revenue and complications in the administration. Analysis of tax reliefs is complicated because their uniform definition does not exist. They can mean deductions from the tax base (tax allowances), the tax relief or the tax credit, which reduce the actual tax liability. The aim of this paper is to evaluate the scope of use of tax reliefs, which are granted to individuals in the Czech Republic, in the form of non-taxable portion of the tax. Methodically, the research relies on the evaluation of secondary statistical data of the Czech Republic Financial Management and is based on aggregated data from tax returns filed for the years 2005 - 2014, which are statistically processed further.

Tax relief is used more all less in all countries within the structure of personal income tax. They are focused on supporting desirable public policies and can be an inexpensive administrative tool. The purpose of this paper is to evaluate the effect of the tax deduction as a donation for individuals by income group graded according to the tax bases. Assess whether the tax relief performs the function for which it was established and whether it is one of the important factors affecting the philanthropy of individuals in the country. Methodically, the research relies on static analysis of secondary data from the years 2005 - 2013, provided by the financial administration of the country. This data is further processed statistically, using the average values and regression analysis. Research suggests that deductible donation as a tax-free portion of the tax is inadequate, it does not have strong incentive effect and does not significantly affect taxpayers either. If the state wants to achieve long-term sustainability and altruistic behaviours will have to choose other means.

Continuously growing indebtedness of Czech households is a trend of recent years. Even though the pace of the growth of credits provided to households is not currently reaching such high values as it did in previous years, still household indebtedness is growing every year and the volume of credits granted by banks exceed one billion of Czech crowns at the moment. This paper focuses on the development of the indebtedness of Czech households, its current status and the predicted future development. This topic will be analysed not only on the general level but also from the viewpoint of income and age. The aim of this paper is to analyse the development of Czech household debt at banking institutions, including a prediction of future development. The analysis will be performed using cluster analysis, which occurs in the evaluation of total household indebtedness and to the analysis of household indebtedness according to their income and age structure of the respondents.