From a theoretical and practical point of view, we are taking you in this book on an intellectual journey where we will present taxes and the tax system in economic terms. We understand tax system economics as the overall governance of a country’s or integration grouping’s revenues and public expenditure aimed to create a smart economic policy that stimulates economic growth and development, and safeguards against the functional risk to the current and next generations. We present a theoretical tax system model and its reflection in the global economy, or a division of the tax system into productive and non productive fiscal and redistributive functions.
We discuss respective types of tax which are of greatest importance to the economy, offering an extensive methodological and systematising study on the economic analysis of the tax system, including an economic analysis of law. Next, we present behavioural economics and its application in the tax system, showing a model of mental accounting relating to the Decision to pay tax according to Richard Thaler. Then, we demonstrate the tax system’s efficiency taking account of social welfare, trust in authorities and the power of the authorities. Last but not least, we try to present, based on research into innovation and tax system of the future, the clash of developed economies with the new reality of developing economies as well as changes facing tax systems in the accelerating process of digitalisation and robotisation.
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This book could not have been more timely. As countries emerge heavily indebted from the pandemic, many governments will be scrutinizing their tax systems in search of new sources of revenue. This book presents a comprehensive discussion of various aspects of tax systems and has the potential to inform the much needed public debate on the subject. Its accessible language, clear exposition and many examples from around the world make it suitable for a wide audience.
Beata Javorcik
Professor of Economics at Oxford and Chief Economist of the European Bank for Reconstruction and Development
This book should be read by everyone who pays taxes. Reading it enables a better understanding of the interdependence between the tax system and the common good, significantly projecting the quality of our lives. Particularly important is the economic analysis of the law presented in the book, as a necessary condition for a reliable assessment of the rationality of the tax system and its impact on social and economic development.
Elżbieta Mączyńska
Professor of Economics, President of the Polish Economic Society (2005-2020)
This book brilliantly moves the discussion of modern economic systems from abstract speculation to the real world where taxes and monetary policy rule. A must-read for every economist and student.
Adam Glapiński
Professor of Economics, President of the National Bank of Poland
Everyone talks about taxes, because they affect everyone, while few are able to write about them in a reliable way that serves the cause of sustainable development. The authors belong to this small group. Their book is distinguished not only by their theoretical knowledge of things, but also by their awareness of the practical implications of fiscal systems and policies.
Grzegorz W. Kołodko
Professor of Economics, Kozminski University, Deputy Prime Minister and Minister of Finance, 1994-97 and 2002-03
Taxes have various economic functions: fiscal, stimulative, redistributive. We should always start our analysis of the tax system with economic analyses. It may be surprising that such an indispensable study, which should be the basis of any discussion of the tax system, is only now being published.
Adam Mariański,
Professor of Law, Chairman of the National Chamber of Tax Advisors (2018-2021)
This is a publication that organizes well the knowledge of tax systems. We entrepreneurs have been asking our governments for years for a simple system that gives the opportunity for fair competition in both the domestic and global markets. The book proves that the authors are among a small group of people who have the knowledge necessary to prepare the concept we are calling for.
Adam Góral,
founder and CEO of Asseco Poland