Statutory, effective, and optimal net tax schedules in Lithuania

We estimate effective and optimal net income tax schedules and compare them to the estimated statutory rates for the case of Lithuania for the period 2014–2015. Values of effective net tax rates are estimated from the survey of EU Statistics on Income and Living Conditions; the statutory net tax rat...

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Autores principales:	Cerniauskas Nerijus, Jousten Alain
Formato:	article
Lenguaje:	EN
Publicado:	Sciendo 2021
Materias:	optimal tax schedule effective tax schedule statutory tax schedule taxes transfers employees self-employed lithuania h2 h21 Labor policy. Labor and the state HD7795-8027
Acceso en línea:	https://doaj.org/article/007f0fe806824508bdac24de23914274
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spelling	oai:doaj.org-article:007f0fe806824508bdac24de239142742021-12-05T14:11:08ZStatutory, effective, and optimal net tax schedules in Lithuania2193-900410.2478/izajolp-2021-0005https://doaj.org/article/007f0fe806824508bdac24de239142742021-06-01T00:00:00Zhttps://doi.org/10.2478/izajolp-2021-0005https://doaj.org/toc/2193-9004We estimate effective and optimal net income tax schedules and compare them to the estimated statutory rates for the case of Lithuania for the period 2014–2015. Values of effective net tax rates are estimated from the survey of EU Statistics on Income and Living Conditions; the statutory net tax rates are estimated with the European tax-benefit simulator EUROMOD, whereas optimal net taxes are calculated via Saez (2002) methodology. We find that the three net tax schedules are similar for employees in the middle of the income distribution. At the bottom of the income distribution, optimal net tax schedules suggest higher in-work benefits. The net tax schedules diverge substantially for the self-employed. At the top of the income distribution, where the majority of self-employed are concentrated, the self-employed are required to pay 15 cents less net taxes per Euro than employees—and they effectively pay 29 cents less.Cerniauskas NerijusJousten AlainSciendoarticleoptimal tax scheduleeffective tax schedulestatutory tax scheduletaxestransfersemployeesself-employedlithuaniah2h21Labor policy. Labor and the stateHD7795-8027ENIZA Journal of Labor Policy, Vol 11, Iss 1, Pp 1-40 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	optimal tax schedule effective tax schedule statutory tax schedule taxes transfers employees self-employed lithuania h2 h21 Labor policy. Labor and the state HD7795-8027
spellingShingle	optimal tax schedule effective tax schedule statutory tax schedule taxes transfers employees self-employed lithuania h2 h21 Labor policy. Labor and the state HD7795-8027 Cerniauskas Nerijus Jousten Alain Statutory, effective, and optimal net tax schedules in Lithuania
description	We estimate effective and optimal net income tax schedules and compare them to the estimated statutory rates for the case of Lithuania for the period 2014–2015. Values of effective net tax rates are estimated from the survey of EU Statistics on Income and Living Conditions; the statutory net tax rates are estimated with the European tax-benefit simulator EUROMOD, whereas optimal net taxes are calculated via Saez (2002) methodology. We find that the three net tax schedules are similar for employees in the middle of the income distribution. At the bottom of the income distribution, optimal net tax schedules suggest higher in-work benefits. The net tax schedules diverge substantially for the self-employed. At the top of the income distribution, where the majority of self-employed are concentrated, the self-employed are required to pay 15 cents less net taxes per Euro than employees—and they effectively pay 29 cents less.
format	article
author	Cerniauskas Nerijus Jousten Alain
author_facet	Cerniauskas Nerijus Jousten Alain
author_sort	Cerniauskas Nerijus
title	Statutory, effective, and optimal net tax schedules in Lithuania
title_short	Statutory, effective, and optimal net tax schedules in Lithuania
title_full	Statutory, effective, and optimal net tax schedules in Lithuania
title_fullStr	Statutory, effective, and optimal net tax schedules in Lithuania
title_full_unstemmed	Statutory, effective, and optimal net tax schedules in Lithuania
title_sort	statutory, effective, and optimal net tax schedules in lithuania
publisher	Sciendo
publishDate	2021
url	https://doaj.org/article/007f0fe806824508bdac24de23914274
work_keys_str_mv	AT cerniauskasnerijus statutoryeffectiveandoptimalnettaxschedulesinlithuania AT joustenalain statutoryeffectiveandoptimalnettaxschedulesinlithuania
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Statutory, effective, and optimal net tax schedules in Lithuania

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