In Charge of What the Taxes are Paid by Individual Taxpayers

Abstract

Taxes are always simply a price we have to pay for existing and operation of the State - for the roles it plays. The main question that arises is: in charge of what taxpayers pay their taxes. The Author shows in diagram in charge of what taxes are paid by taxpayers of different levels of income and discusses main consequences of this for tax policy. He shows that tax cuts for taxpayers of different income levels give different results. Only tax cuts made in the area of low and medium income are likely to promote global demand. So tax reforms in the European Union made to "reinforce domestic demand" had to miss their declared objective as mainly upper tax rates were reduced within the tax progression scale. Demand grew up indeed - but it mainly took the form of demand for securities on financial markets.