DIFFERENT TAX PREFERENCES?
OLD VS. NEW EUROPE
1Institute of Economics, Department for Social Policy and Labor Markets
2Institute of Economics, Department for macroeconomics and international economics
3University of Zagreb - Faculty of Economics and Business
|INDECS 19(2), 328-356, 2021
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Received: 26th June 2020.
The aim of the article is to provide a comparative analysis of the factors behind citizens' specific tax burden preferences between New and Old EU Member States. Based on the available data from International Social Survey Programme for years 2006 and 2016, we form two groups of countries: Old Europe - Germany, Denmark, France, Spain, Finland and Sweden - and New Europe - Czech Republic, Slovenia, Latvia, Hungary and Croatia. Initial inspection of the preferences for more progressive taxation shows that in most countries, citizens would prefer the higher redistributive role of the state and there are no clear-cut differences between Old and New Europe. Analysis of factors contributing to individuals' preferences for progressive taxation provided interesting insights: older cohorts in New Europe are not disproportionally inclined to progressive taxation; political orientation and union membership are more important in Old than in New Europe; and there are no significant changes in the patterns resulting from the latest financial crisis.
tax burden preferences, European economies, comparative analysis, International Social Survey Programme
JEL: H20, H31