Personal Income Tax Policy
Personal Income Tax Policy

Summary/Abstract: Personal income tax policy generally does not make distinction regarding people with disability on the one side, and non-productive employed persons. To prove “non-discriminatory” approach in personal income tax policy, standard non-linear model and the commodity taxation framework has been used. In this analysis have been used also two assumptions. The first one is differential understanding of taste of leisure regarding person with disability and ordinary person. The second is meaning of expected limitation in activity for persons with disability. Leisure could be dependable on commodity combination and on income tax redistribution from early to latter taxation. To avoid problems with financial crisis from 2008 analysist was concentrated in period before 1975-2005. Regarding countries located in western Balkan they are still in the beginning of diversified personal income tax policy related to unemployed people with disability and employed people without disability. The main source of income for government budget is still VAT. Currently VAT in Serbia is 20% and in Croatia 25%. These percentages are extremely high compared to province of Ontario where is HST “only” 13% and HST cold be accepted as VAT in EU and all other countries in Europe. European countries still hast to make major reform in tax policy and provide for government budget stronger impact of personal income tax, than any tax related to the sale price.

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