TAX POLICIES IN NORTH MACEDONIA - PROGRESSIVE TAX ON INCOME
Research Article
TAX POLICIES IN NORTH MACEDONIA - PROGRESSIVE TAX ON INCOME
ABSTRACT
The purpose of this paper is to assess and provide explanation and expected effects of progressive income tax in North Macedonia, based on recent results explained in practical cases. Choosing the best taxation system, by having tax that provides the same percentage for all categories of income and a tax increase progressively to individuals with higher incomes, it remains to be discussed and explain the selected case to clarify the definition of progressive tax. We reconsider rather the optimal progressivity of earnings taxations and whether the income should be taxed at all. The government explained that the goal of income progressive taxation is to incite the economy and make sure a minimum standard of living for every citizen, which in the future will low the health care costs and provide strong force labor, that we critically discuss the academic research and consultation with concerned sides about appropriate implementation on this topic. According to policies, the tax income is paid at a progressive rate of 10% for the earned income up to 1.080.000 MKD per year, and of 18% for the income earned above this threshold. This implies that very high earners will be subject to high tax rates, how this would encourage low income families to work with earning subsidies and is it reasonable to freeze the progressive tax for the next 36- months.
RAMADANI, V.,
(2019). TAX POLICIES IN NORTH MACEDONIA - PROGRESSIVE TAX ON INCOME. Trends in Economics, Finance, and Management Journal, 1(1), 89-94. Arrival Date Posted By:https://tefmj.ibupress.com/articles/tax-policies-in-north-macedonia---progressive-tax-on-income
