QUANTITATIVE AND QUALITATIVE ANALYSIS OF INCOME TAX AND PERSONAL INCOME TAX THE AFFECTS IN BUDGET REVENUES IN REPUBLIC OF MACEDONIA
QUANTITATIVE AND QUALITATIVE ANALYSIS OF INCOME TAX AND PERSONAL INCOME TAX THE AFFECTS IN BUDGET REVENUES IN REPUBLIC OF MACEDONIA

Summary/Abstract: This paper examines the impact of income tax and exceptional look in personal income tax to budget revenues in the Republic of Macedonia. We empirically investigate the effect of income tax and personal income tax by using the method of simple linear regression and through the application of the method of small squares (OLS). The paper includes data from first quarterly 2001 to fourthly quarterly 2016. The results show that the change of income tax for 1% will cause public revenues growth by 0.06% and as well the change of personal income tax for 1% will cause public revenues growth 0.05%. The income tax and personal income tax has a positive sign in all models, which means that this variable is statistically significant, which revenue that a light increase of tax income and personal income tax affects in budget revenues (under conditions not to reduce the number of taxpayers). In order to increase the impact of these two categories on budget revenues, perhaps the country needs to reform the fiscal system, addition towards achieving the country's development objectives.

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