Abstract (eng)
This diploma thesis analyses the impact of the introduction of a "Flat Tax" on tax revenues, economic growth, employment and income distribution.
In the first part of the study a comparison of Income Tax Systems (Flat Tax, Global & Dual Income Tax) is given. This is followed by the discussion of the main theoretical concepts of the flat tax. Thereby the focus lies on the design of an optimal tax schedule in terms of welfare and utility maximization, the impact of introducing a Flat Tax on income distribution, work incentives, tax revenues, compliance and automatic stabilization.
The empirical section provides case studies of Russia and Slovakia. After a description of their different economic situations and tax reforms, the impacts of introducing a Flat Tax on tax revenues, economic growth, employment and income distribution are discussed.
It is stressed that the Flat Tax is part of a more complex context and therefore cannot be analyzed separately.
With its simple form the Flat Tax has the potential to increase the efficiency of taxation. But finally, it is the legal framework and the public administration that determine the effectiveness of tax legislation. If the introduction of a Flat Tax leads to a reduction of the tax burden, then this will be c.p. associated with revenue losses.
The claim that the Flat Tax creates positive work incentives and therefore enhances economic growth is not supported by the findings of this paper.
Regardless of the fact whether the design of the Flat Tax is revenue neutral, or whether its revenue losses are compensated by other measures, the introduction of a Flat Tax reduces the level of redistribution.