Albanian Economy: Proportional or Progressive Taxation?

Ejona Bardhi

Abstract


Choosing the best system of taxation lies in the balance between equality and fairness or efficiency. It is an expression that should guide any fiscal policy. Given that one of the hottest economic topics that pits the political parties can not stay away from the attention of citizens and scholars of the economy. On the one hand we have a tax that provides the same percentage for all categories of income, on the other hand you have a tax increase progressively in line with revenues. therefore, taxes less progressive taxation individuals with lower incomes, but if the tax burden shifted progressively to individuals with higher incomes, it remains to be discussed. Like most developing countries, Albania differs in many respects from developed countries, among which capacity institutional, state, rule of law, the structure of the economy and other economic characteristics. Such differences justify a different tax policy. Progressive taxation has been applied in Albania since 2015. Is this a tax that provides equality for all? Stated every moment and in every public appearance of our politicians, "equality before the law" as a principle that should be applied objectively and accurately reports, but this system offers true equality before the law? What has brought the Albanian economy this system? What happened to investments or unemployment? Through this work I intend to present a clear analysis of income tax applied in Albanian economic system and how this tax has affected the economy as a whole. Also this work is also a reflection on the advantages and disadvantages of this tax system.

DOI: 10.5901/mjss.2017.v8n1p176


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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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