The Relationship Between the Tax Burden and Financing Public Services: A Comparison of Ukraine and European Countries

Samusevych, Yaryna Valentynivna; Shamaelh, A.

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Title	The Relationship Between the Tax Burden and Financing Public Services: A Comparison of Ukraine and European Countries
Authors	Samusevych, Yaryna Valentynivna Shamaelh, A.
ORCID	http://orcid.org/0000-0001-7048-8388
Keywords	tax burden податкове навантаження налоговая нагрузка optimal level оптимальний рівень оптимальный уровень financing фінансування финансирование public services державні послуги государственные услуги competitiveness конкурентоспроможність конкурентоспособность tax competition податкова конкуренція налоговая конкуренция
Type	Article
Date of Issue	2017
URI	http://essuir.sumdu.edu.ua/handle/123456789/61804
Publisher	Sumy State University
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Citation	Samusevych I., Shamaelh, A. (2017). The Relationship Between the Tax Burden and Financing Public Services: A Comparison of Ukraine and European Countries. Financial Markets, Institutions and Risks, 1(3), 55-64. DOI: 10.21272/fmir.1(3).55-64.2017
Abstract	The strategy of reforming the country’s tax system should consider the real effect that taxpayers receive in response to their tax payments, that is, the level of financing public services. The article formalizes the links between the tax burden and financing public services since multifactor dependencies using the panel regression method with fixed effects for Ukraine and 10 countries – its tax competitors (Bulgaria, Georgia, Latvia, Lithuania, Romania, the Czech Republic, Estonia, Slovakia, Moldova, Serbia). Based on the calculations, it was found that the existing level of tax burden in Ukraine is overstated, while the optimal level in 2012 was: 1) the total tax burden – 14.39-18.09% of GDP; 2) the burden on legal entities – 45.99-48.32% of the profits of enterprises; 3) the burden on individuals – 11.92-28.75% of wages. These values correspond to the actual amounts of government spendings on financing public services.
Appears in Collections:	Financial Markets, Institutions and Risks (FMIR)