ABSTRACT

Paper purpose – to answer the question “Which tax system is better, the progressive taxation one or the flat tax one?”

Approach/method – The method consists of studying literature in the field and making an analysis at the level of the countries that have adopted the flat tax system

Findings – the adoption of the flat tax should be accompanied by a decrease in the level of taxation, in order to achieve the desired effects

Originality/value – although the government is the one who makes the decision to increase or decrease the fiscal burden, fiscal competition is the trendsetter in this area and subjects the state to constraints

 Authors:

Emilia CLIPICI, Alina HAGIU
University of Pitesti [1,2], Romania

Keywords – flat tax, progressive taxation, fiscal competition

JEL Classification – H21, H30

Paper type – Viewpoint, Literature review

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PROS AND CONS RELATED TO FLAT TAX