Fairness In Taxation Research Articles

The IFRS adoption, corporate tax avoidance and the moderating effect of family ownership

Purpose This paper aims to examine the influence of the International Financial Reporting Standards (IFRS) adoption on corporate tax avoidance (CTA). In addition, this study aims to explore whether family ownership moderates the impact of IFRS adoption on CTA. Design/methodology/approach The authors used a sample of 1,856 firms from various countries around the world, covering the period between 2010 and 2022. To estimate the proposed econometric models, the authors applied both fixed and random effects regression methods. Findings The present findings show that IFRS adoption has a negative impact on CTA, as measured by the effective tax rate and book-tax differences. This negative impact is more pronounced in “common law” countries than in “civil law countries.” Additionally, the authors found that family ownership plays a moderating role by positively affecting the impact of IFRS adoption on CTA. Practical implications The findings have practical, regulatory and academic implications for fostering accountability and fairness in taxation. This study suggests that implementing IFRS reduces tax avoidance and emphasizes the need for firms to evaluate the implications of IFRS adoption on their tax-planning strategies. It highlights the importance of aligning financial reporting practices with international standards to enhance transparency and minimize tax avoidance opportunities. The differential impact of IFRS adoption between “common law” and “civil law” countries underscores the role of legal and regulatory frameworks. In addition, family ownership plays a significant role in shaping tax-planning strategies. From an academic perspective, this research provides a foundation for further exploration into the relationship between IFRS adoption and tax avoidance. Originality/value The existing literature has predominantly concentrated on examining the effect of IFRS adoption on CTA, and the empirical findings have been inconsistent. This study introduces a novel perspective by considering the moderating influence of family ownership in determining the impact of IFRS adoption on CTA.

Social Security and the Fairness of the US Tax System

There have been recurring arguments over time that taxes paid by wage earners for Social Security are regressive and hence unfair. The argument is further made that if these taxes are included in the calculation of the overall income tax burden, they make the income tax in the United States regressive (and hence unfair) as well. The purpose of this paper is to address both of those arguments: whether it is appropriate to combine it with the incometax when assessing progressivity, and whether the Social Security system itself is unfair. Much of the literature on taxation –popular, political, and academic –makes repeated references to whether a given tax structure is “fair” or not. Fairness in taxation, although never clearly defined on an objectively measurable basis, is generally thought to be based at least on a progressive tax structure. A critical question in the current discussion is whether this progressivity is in all cases “fair” and desirable, irrespective of the nature of the tax being imposed.This paper argues that combining general income taxes with Social Security taxes in order to assess the overall “fairness” of the tax structure is inappropriate and that the Social Security program imposes unfair taxes on some taxpayers.

Japan’s Study on International Taxation in the Digital Economy: Fairness in Taxation, Trade and Competition

In August 2021, a report on international taxation in the digital economy was published by a study group established by Japan’s Ministry of Economy, Trade and Industry. This article introduces this report and provides another perspective into the current global discussion on digital taxation.

Шляхи вдосконалення податкового стимулювання аграрного сектора економіки

Assessment of the current state of development of mechanisms of tax incentives of economic entities in the agrarian sector of the economy remains in the field of view of both scientists and practitioners. However, the solution to this problem on a State-wide scale has not yet been fully investigated and needs further study, adapting foreign experience to the national tax system. The article is aimed at substantiating the theoretical aspects of tax incentives for business entities in the agrarian industry, explaining the impact of effective methods of the State financial support on the results of their activities. To solve the tasks set in the process of research, a complex of general scientific and special methods of scientific knowledge was used. It is determined that tax incentives of agrarian business entities at the present stage are an important component of economic policy and are used to level crisis phenomena in the market and encourage investments that create positive market externalities. It is found that tax benefits, which are closely related to the principle of fairness in taxation, play a significant role in the tax incentives of agrarian business entities. The authors propose that the following be implemented at the State level: pay special attention to the insrtumentarium of tax incentives, as well as analyze the assessment of its effectiveness; focus on the rational use of agrarian land by farmers by strengthening control, taking appropriate measures to prevent misuse and the application of administrative mechanisms in detecting violations; establish differentiated increases in land tax ratios for entrepreneurs of the fourth group in cases of the inappropriate use of agrarian land.

Dominacija izdašnosti nad pravičnošću u oporezivanju dodate vrednosti

In modern tax systems, there are different forms of consumption taxation, and the most common among them is value added tax. VAT is one of the most important categories of tax revenues, considering the fact that it is characterized by a high degree of plentifulness. However, the main disadvantage of VAT is the fact that it distributes the tax burden regressively in relation to the taxpayer`s income. Given that the relative share of consumption in income falls as income grows, VAT, determined at a unique rate, hits harder the poorer than the richer part of the society. The aim of this work is to show the dominant relationship of the principle of plentifulness in relation to fairness in value added taxation the point our the existence of regression problems and possible measures that can be applied to meet the principle of fairness in taxation.

Принципи справедливості та їх відображення при оподаткуванні суб’єктів господарювання у вітчизняній податковій системі

The article is aimed at theoretical substantiating the conceptual bases of taxation fairness as a component of tax system. For solution of the aim set in the article, general methods of scientific knowledge together with research of economic phenomena were used. The theoretical-methodological basis of the research is the work of foreign and domestic scholars who study the problems of the tax system as a whole and taxation fairness in particular. The following methods were also used in the research: monographic, comparison, abstract-logical, scientific generalization. The theoretical aspects of taxation fairness are considered. The main provisions that characterize the level of fairness of tax system are analyzed. The possibility of introducing approaches to compliance with the essence of fairness into the tax system is evaluated: from the point of view of the taxpayers’ solvency; compliance of the benefit received by taxpayers from the State; observance of a harmonious combination of interests of all participants in tax relations. It is reasoned that tax benefits do not contradict the principle of fairness in taxation. It is proposed, in the current version of the Tax Code, to reflect the principle of taxation fairness, which should serve the legislative and executive authorities, as well as taxpayers as a guideline in the development and implementation of tax policy.

Legal Component of Public Policy in the Field of Public Health in the Aspect of Providing Social Support for Vulnerable Sections of the Population

The author’s legal support of the components of the structural-functional model (SFM) of medical care for children with bronchopulmonary dysplasia (BPD) is given in this article, in particular regarding social support for families in which children with disabilities are raised, which is aimed at strengthening social protection, individualization of the worker schedule and employment, expanding the availability and cheapening of food products, patient-oriented social assistance and improving the economic condition of persons with children with disabilities, other urgent problems of patients with BPD. The Law of Ukraine number 544-VIII «On Employment» renewed the rights of citizens with additional guarantees in employment, and provided these guarantees, and with respect to the target contingent of the SFM, it strengthens the social protection of parents, the establishment of a shorter working time or part-time or non-working week only for women who raise a disabled child, individualization of working time in the care of a sick family member. It is envisaged to ensure fairness in taxation in accordance with EU Council Directive number 2006/112, and in relation to the target contingent of the SFM — the reduction in the cost of food for special nutrition for children. It is also ensured that social justice is implemented in the pension provision of the parental family and, in relation to the target contingent of the SFM, is the improvement of the economic condition of persons with disabled children. A comprehensive reform of the health care system has been defined to create a network of state and communal institutions with a sufficient level of independence, which in relation to the target contingent, the SFM implements approaches aimed at creating a patient-oriented system that can provide medical care in an institution. In order to improve the legislative and regulatory support during 2014–2019, directions for the implementation of the legislative initiative were identified. Socio-medical assistance has been improved: social protection of parents with dependent children under 6 years of age has been strengthened, working hours have been individualized when taking care of a sick family member, food products have been cheapened for special nutrition of children, the creation of a patient-oriented care system has been substantiated, the economic state of persons supporting children has been improved while increasing the mutual responsibility of parents in material assistance and other, which improved the regulatory and legal support of this component of the SFM of medical care for children with BDL.

ЕФЕКТИВНІСТЬ ПОДАТКОВОЇ СИСТЕМИ ТА НАПРЯМИ ЇЇ ВДОСКОНАЛЕННЯ

Market conditions, deepening of European integration processes have significantly affected the functioning of the national economy and the current tax system. The main source of state revenue are taxes, which form the budgets of all levels. At the same time, the numerous reforms of the tax system are ineffective due to imperfect tax legislation and inefficient mechanisms of administration of taxes and fees. economic objects of all organizational and legal forms of the national economy. In recent decades, there has been an increased interest of scientists in solving problems of building a domestic effective model of the tax system. First of all, this is due to the fact that the development of the tax system provides a strategic direction of development of the country, contributes to the effectiveness of innovation and investment model of economic growth of the national economy. one of the important prerequisites for improving the economic situation in the country, as taxes are used by the state not only for fiscal purposes, but also serve as the main lever of economic development. The purpose of the study is to highlight current issues and areas of improvement of the tax system of Ukraine in terms of its effectiveness, able to ensure fair taxation. Important importance is attached to the effective use of transfer pricing mechanisms — an algorithm of actions of the State Tax Service to improve control over transfer pricing has been developed and approved. Given this, the tax burden on taxpayers is significantly reduced by fiscal authorities spending less time on the administration of taxes and fees. Analyzing the above, we can conclude that today the problem of reforming the tax system of Ukraine in order to fill the budgets of all levels with taxes and fees. Adherence to the principle of fairness in taxation is important. In today's reality, the largest share of taxes is paid by the final consumer in the administration of indirect taxes in particular: value added tax and excise tax. Requires a review of the base and rates of collection of resource taxes and payments. The shadow sector of the economy occupies a prominent place in the structure of GDP. The application of tax minimization schemes has a negative impact on the national economy. In view of this, tax evasion schemes should be minimized at the state level.

Evaluation of Tax Burden on Labor Income for OECD Countries

The concept of tax regulated by law should be collected from taxpayers in proportion to their ability to pay as a requirement of the principle of fairness in taxation. The importance of the ability of tax payment has been increasing in terms of tax burden in recent years. The tax burden is expressed as both individual and total tax burden. The personal tax burden is calculated by the ratio of taxes paid by individuals to their personal income. Countries and organizations such as OECD calculate the tax burden in more detail and specifically. In this study, a comprehensive analysis of the change of tax burden in OECD countries for the period 2000-2018 is carried out. Before analyzing, some basic information about main concepts such as labour income, tax burden, personal income tax are given. The percentage change in the process of the tax burden for household types during that period are shared through tables which are included with the datas from OECD database and its reports, and the findings related to them are evaluated.

Податкові пільги як інструмент реалізації концепції справедливості в оподаткуванні

Податкові пільги як інструмент реалізації концепції справедливості в оподаткуванні

The Fair Tax: The Personal Realization Income Tax

This article argues that the properly conceived fairness norm for taxation leads to a personal realization income tax. Fairness in taxation refers to “allocative tax fairness,” that is, the ethical/political standard according to which taxes are to be apportioned among the relevant population. In concrete terms, the standard constitutes the tax base for individual taxpayers. Allocative fairness is but one norm bearing on taxation, but it is one that (in academia, at least) has unjustifiably taken a back seat to economics and welfarist norms, largely due to the perception that allocative tax fairness lacks any specific content apart from the speaker’s political and personal tastes and, therefore, by implication, is without independent normative grounding. The short riposte is that exclusive adherence to economic and/or welfarist norms is itself a matter of personal taste. The more elaborate response entails showing that (1) fairness is an independent norm category apart from economics and welfarism; (2) allocative fairness matters in the construction of tax systems; and (3) allocative tax fairness has a discernable content. That content is conceptualized in the notion of “objective ability-to-pay,” which refers to an individual’s realized net increase in material wealth over the taxable period (reduced by off-the-bottom allowances), and does not refer to utility, satisfactions, or well-being as such. The tax base that conforms to the objective ability-to-pay principle is that of a personal realization income tax, as opposed to (say) a personal wealth, accretion, or consumption tax.

Tax, Order, and Good Government: A New Political History of Canada, 1867–1917 by E.A. Heaman

Reviewed by: Tax, Order, and Good Government: A New Political History of Canada, 1867–1917 by E.A. Heaman Peter Campbell E.A. Heaman, Tax, Order, and Good Government: A New Political History of Canada, 1867–1917 ( Montréal and Kingston: McGill-Queen's University Press 2017) Those of us who keenly feel our inadequacies as economic historians are reassured by Elsbeth Heaman's claim that her latest book is a cultural history of taxation. In this way, those of us grown used to the idea that the history of Canada can be written without dealing with the history of taxation at all are brought face to face with the race, class, and gender dimensions of a question we have been quite happy to leave to our colleagues in the economics department. The publication of Tax, Order, and Good Government marks a turning point in our understanding of the first half-century of the country because Elsbeth Heaman has created a coat of many social, cultural, and economic colours stitched together by the history of taxation. The book is characterized by the complexity of its simplicity. The author begins with a deceptively simple point that is on the money: John A. Macdonald's National Policy – that is, the tariff – was a tax. She then complicates the simplicity by pointing out that the National Policy was not just about revenue; it was politically intended to provide enough revenue for the federal government to stay clear of taxpayer anger and protest. The acquiring of that revenue was based on the tariff, a clientelist indirect tax that involved the blatant transfer of money from the poor to the rich. At the heart of book, therefore, is how and why of what Heaman calls Macdonald's quasi-imperialist project broke down in the first half century of Confederation. In the decades following Confederation, Macdonald's government was able to hide behind the tariff by making fairness in taxation a local issue that focused on the inability or refusal of the poor to pay their taxes. In this way attention was diverted from the clientelism and corruption of the rich and redirected squarely on racialized minorities who were perceived as not paying their fair share. In her chapter on British Columbia, Heaman reveals that taxes were collected at gunpoint, the Chinese engaged in tax riots, and the attempt to collect poll taxes from [End Page 275] Aborginal People living off reserve ultimately failed. Living up to her promise to deliver a cultural history of taxation, Heaman powerfully evokes the ways in which Chinese evasion of tax paying provided the pretext for racist whites in BC to deny the Chinese rights of citizenship. The chapter on Montréal most powerfully evokes Heaman's claim that it is the "desperate pleas of the poor for relief" that give the book "its moral centre." (17) Heaman chronicles, in French and English, the anguish of desperate Montrealers unable to pay even a meager water tax. The figures are astonishing; in 1903 alone, 31,270 households were in arrears on their water taxes. (229) Warrants for seizure were issued in astonishing numbers, into the tens of thousands in some years. This was the municipal government, the level of government charged with keeping the poor from starving: a responsibility of which the federal government had washed its hands. The genius of Heaman's analysis is that it takes an issue, taxation, that many of us had dismissed as a bourgeois concern, and uses it as a vehicle to bring us face to face with brutal poverty and dispossession. But the story does not end there. In taxing directly everything from dogs to water, municipal authorities had to engage taxpayer anger and, in the process, demonstrate fairness. In Montréal, the works of progressive businessman H.B. Ames (author of The City Below the Hill) and journalist Jules Helbronner made major contributions to a fiscal reform movement that led to the creation of "a widespread popular movement for social and economic reform." (330) Fiscal reformers insisted that a tax system must be based on moral and social considerations, and these considerations increasingly worked their way upwards into the federal realm. The...

Fairness: A Dire International Tax Standard with No Meaning?

In their discussions on corporate income tax systems the International Organizations (IOs) OECD, UN, IMF and World Bank, Supranational Organizations (SOs), Non-Governmental Organizations (NGOs), associations of practitioners and Governments often refer to the concept of fairness without proper definition of what in the context of their arguments is fairness and how the fairness can be achieved. The consequence is that fairness in taxation is a blurred concept. This article shows that fairness in taxation has an economical, juridical, philosophical and political perspective. Following the overview of these perspectives, this article calls for more research on global perceptions of fairness and for formulating an agenda for discussing this issue by IOs, SOs, NGOs and Governments.

PRESUMPTIVE TAX PAJAK PENGHASILAN FINAL 1 PERSEN: MEMUDAHKAN ATAU MEMBERATKAN UNIT MIKRO KECIL MENENGAH

The Government has issued Government Regulation No. 46 Year 2013 regarding Income Tax on Income from Business or Obtained Received Tax Payer. This government regulation set Income Tax (VAT), which shall be final on income received or accrued by the taxpayer with a gross turnover of certain restrictions. Consideration of the Government for the imposition of income tax at the rate of 1% of the circulation of business every month and final of MSMEs as stated in the explanation of the general PP 46 in 2013 is simplicity in tax collection, reduced administrative burden for both the taxpayer and the Directorate General of Taxation, and with regard to economic development and monetary. Imposition of final income tax means that after payment of income tax of 1% calculated on the gross income each month, the tax liability on such income has been considered complete and final. Judging from the concept of fairness in taxation (equity principle), the imposition of final income is not in accordance with justice because it does not reflect the ability to pay. This study aimed to determine the perception of MSMEs in West Lombok district Banyumulek related to the final income tax. The results showed that the imposition of final income tax rate of 1% of gross income tax authorities which are intended to facilitate the taxpayers in calculating the tax to be paid has not been fully accepted by the taxpayer SMEs Sentra pottery industry in Banyumulek. For them, the imposition of final income tax rate of 1% of gross turnover is only prioritize on the ease of taxpayers to calculate the tax payable, regardless of the side of fairness for taxpayers, since each taxpayer has a different number of dependents.
 Keywords: income tax (VAT), SMEs, 1% final rate.

Satisfying the Principle of Fairness in Consumption Tax

Abstract Consumption taxes have an important place in the tax systems of modern states. They provide a large amount of revenue for the state budget. However, they are generous, but they are very regressive. It is a bad characteristic. The regressivity problem of the tax burden implies that the consumption tax is burdensome for the population with lower income. They pay similar tax rate as people with high income. The aim of this paper is to point to the existence of the problem of regressivity in underdeveloped and developed countries. This paper analyses the possibilities of reducing this problem in order to satisfy the principle of fairness in taxation.

Albania Government and It’s Challenges in Progressive Tax Implementing

Horst Dieter Vesterhoff (economic adviser to three German chancellors) said that a tax system should meet at least three conditions. First the state to bring enough income must be based on the solvency of citizens and should not impede or dissolve desire to work, to do investments or research and further discoveries. Progressive tax is one of the key points of the new government. Progressive taxation is a type of tax system that is designed to put the greatest tax burden on those who make the most money. The main reason for establishing progressive taxes is to achieve fairness in taxation, at least according to some. Theoretically, those who make little should pay very little in taxes, while those who make more should pay more. How many of ways the progressive taxation can work? In the US, the income tax paid per year by citizens is progressive. It is based on income levels, and as these income levels rise, so do tax levels. It’s a complicated system, where the next portion of income above a certain level is taxed at a higher percent. A progressive tax system allows a government to collect a larger amount of tax revenue, which, can be used for the benefit of public services, such as education, welfare and medical assistance. From the above, the question naturally arises, is Albania's prepared to implement successfully progressive tax? Based on this question in this article I would like to do a synthetic analyses of fiscal system during last 15 years in Albania and identifying what are advantages and disadvantages of progressive tax implemented by stressing the opportunity of government on this process. DOI: 10.5901/jesr.2014.v4n2p35

FENOMENOLOGI PRAKTIK TAX PLANNING PADA WAJIB PAJAK BADAN

<p><strong>Title: [The Phenomenology of Tax Planning Practice by Corporate Taxpayer]</strong><br /><br />This study aims to reveal the meaning of the tax planning practice undertaken by the taxpayer. The meaning excavations carried out not only on the taxpayer, but also carried on the tax consultant. This is done because the tax consultant besides as a taxpayer also serves more than one taxpayer, so the meaning of tax planning practice undertaken by the taxpayer who obtain able much deeper. Transcendental phenomenology research method used in this study to reveal the related phenomena to the reason for the tax payers do tax planning practice. The results found that there are five reasons tax payers do tax planning practice, tax planning is permitted by the Act, the preferred business goals is to maximize the operating profit after taxes, the lack of fairness in taxation, especially in collecting tax, the existing tax system that makes taxpayer less comfortable, and the dualism obligation make taxpayers more likely to run a religious charity than pay taxes.</p>

Equity Versus Efficiency in the Design of the Tax Mix

It is frequently argued that it would be beneficial to move the tax mix towards greater reliance on consumption taxes, with offsetting reductions in income taxes. Proponents argue that this would increase the incentives to “work, save, and invest” and would help improve productivity growth. However, these claims rest on weak foundations and are not well supported by empirical evidence. Most studies have found that reducing personal income tax rates would have only a modest impact on labor supply and work effort. It is a fallacy to suppose that consumption taxes do not reduce work effort simply because they are not levied directly on income. The primary purpose of working is to earn income to spend. A higher consumption tax rate also reduces real after tax income, and dollar for dollar would have the same effect on the incentive to work as a flat income tax. In addition, when a higher sales tax rate is applied to services, it increases the incentive for “do-it-yourself” work to replace purchased services, which can range all the way from gardening to self-representation in court. This also leads to lower national productivity. The evidence that taxes have a significant impact on saving is also quite weak. In the case of people who are aiming for a certain level of investment income after retirement, a lower real after-tax rate of return on their investments forces them to increase their saving rate. Therefore, an income tax cut could have the perverse effect of reducing the national savings rate. Even if lower taxes did increase personal saving, it would be unlikely to have a significant impact on capital investment by Canadian corporations. The primary source of capital is from retained earnings, which are more than adequate for this purpose. A substantial portion of personal portfolio investment in stocks goes to foreign countries. By far the largest and clearest impact of changing the tax mix is on the distribution of income. Canada's GST is not a very regressive tax, as it has been offset by credits for low income people, and exempts basic necessities such as groceries and rent. However, unlike the GST, personal income taxes are highly progressive. Any shift in the tax mix away from income towards consumption taxes would therefore significantly reduce the overall progressivity of Canada’s tax system. In Canada, analysis of this issue has not placed much emphasis on fairness in taxation. In the United States, by contrast, leading legal scholars of taxation such as Barbara Fried, Alvin Warren and Reuven Avi-Yonah have viewed the policy question of fairness as central to the issue. The most credible estimates from economic models indicate at best a small positive impact on economic efficiency from changing the tax. Therefore, the positive impact on income would be too small to compensate most taxpayers, and middle income earners in particular are likely to be net losers from changes in the tax mix. Designing changes in the tax mix so as to make everybody better off is a complex task.

The Economics of ethics and the ethics of economics: values, markets, and the state

Contents: Introduction - Ethics vs Economics: In Praise of the 'Disciplined' Life? Geoffrey Brennan and Giuseppe Eusepi PART I: PATHWAYS THROUGH PRICES AND VALUES 1. Ethics and the Extent of the Market James M. Buchanan 2. Value and Values, Preferences and Price: An Economic Perspective on Ethical Questions Geoffrey Brennan and Giuseppe Eusepi 3. An Economist's Plaidoyer for a Secular Ethics. The Moral Foundation and Social Role of Critical Rationalism Stefano Gorini 4. Conceptual Confusions, Ethics and Economics Hartmut Kliemt PART II: MONEY AND MEDALS: THE ROLE OF MOTIVATIONS IN COLLECTIVE CHOICES 5. Awards: A View from Economics Bruno S. Frey and Susanne Neckermann 6. Assessing Collective Decision-making Processes: The Relevance of Motivation Philip Jones 7. Positive Constraints on Normative Political Theory Geoffrey Brennan and Alan Hamlin PART III: POLITICAL MARKET PROCESSES AND LIBERAL ETHICS: TAX FAIRNESS VS. TAX MORALE 8. The Deregulation of the Political Process: Towards an International Market for Good Politics Reiner Eichenberger and Michael Funk 9. Do We Really Know Much About Tax Non-compliance? Lars P. Feld 10. Searching for Fairness in Taxation: Lessons from the Italian School of Public Finance Luisa Giuriato 11. Cooperation, Reciprocity and Self-esteem: A Theoretical Approach Marcello Basili and Maurizio Franzini Index

Jöfnuður og sanngjörn skattlagning

Því er stundum haldið fram að skattabreytingar síðustu sextán ára hafi aukið ójöfnuð á Íslandi, ekki síst lágur fjármagnstekjuskattur. En það er misskilningur að fjármagnstekjuskattur sé 10% og tekjuskattur á atvinnutekjur 36%. Fjármagnstekjuskattur er 26,2% á eigendur fyrirtækja, auk þess sem þeir verða að reikna sér endurgjald og greiða af því tekjuskatt. Fjármagnstekjuskattur er rösk 36% á þá sem njóta vaxta- eða húsaleigutekna. Söluhagnaður af eignum er ekki reglulegar eða eiginlegar tekjur og ætti ekki að vera skattskyldur. Tekjuskattur á atvinnutekjur er vegna skattleysismarka breytilegur eftir tekjum, árið 2007 0% upp að 90 þús. kr. mánaðarlaunum, 18% þegar mánaðarlaunin eru 180 þús. kr. og hækkar síðan með tekjum, en nær aldrei alveg 36%. Eini hópurinn sem greiðir hærra hlutfall af tekjum sínum en eigendur fyrirtækja eru þeir sem hafa hærri laun en nemur meðaltali. Það er líka rangt að tekjuskipting á Íslandi sé ójafnari en annars staðar á Norðurlöndum. Hún er tiltölulega jöfn samkvæmt alþjóðlegum mælingum. Ýmis rök eru gegn stighækkandi tekjuskatti, sem sumir vilja taka upp. Hann flækir í fyrsta lagi skattlagningu. Önnur rök eru að hann eykur ábyrgðarleysi, þegar einn hópur getur velt þungum byrðum á annan með afli atkvæða. Hin þriðju eru að við hann dregur úr verðmætasköpun. Lítil sneið af stórri köku getur verið stærri en stór sneið af lítilli köku, eins og samanburður Sviss og Svíþjóðar sýnir og einnig reynsla síðustu ára á Íslandi. Þótt skattar hafi verið lækkaðir jafnt á fyrirtæki og einstaklinga, hafa skatttekjur ríkisins stóraukist. Leiða má rök að því að með frjálsara og opnara atvinnulífi hafi jöfnuður frekar aukist en minnkað á Íslandi.