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This chapter examines how public attitudes and judgments about tax fairness reflect distributive justice rules about proportionality/contributions, needs, and equality; fairness issues that influence voluntary tax compliance (Hofmann, Hoelzl, & Kirchler, 2008; Spicer & Lundstedt, 1976). Most public polls and some prior research indicate the general public considers progressive income tax rates as fairer than flat tax rates, a reflection of the Needs rule of distributive justice theory; our 1,138 participants respond similarly. However, two-thirds of our politically representative sample of the American public actually assign “fair shares” of income taxes consistently with fairness-as-proportionality above an exempt amount of income, consistent with the Contributions rule of Equity Theory. We argue experimental assignments of fair shares of income taxes can best be understood as a combination of the Needs rule, applied by exempting incomes below the poverty line from income taxation (via current standard deductions) and taxing incomes above this exempt amount at a single tax rate (i.e., a flat-rate tax) consistent with the Proportionality/Contributions rule. Viewed in combination, these two distributive justice rules explain the tax fairness judgments of 89% of our sample and indicate surprising general agreement about what constitutes a fair share of income taxes that should be paid by US citizens from the 5th percentile to the 95th percentile of the income distribution. The joint application of these fairness rules indicates how seemingly competing, partisan distributive justice concerns can inform our understanding of social attitudes about tax fairness across income classes.

The distributional impacts of replacing an income tax that has graduated marginal rates by a flat tax are complex. Typically the flat tax rate will be less than the top marginal rate under the pre-existing tax, leading to gains for the wealthiest. On the other hand, real-world proposals generally combine this with increases in personal exemptions that benefit some of the lowest income taxpayers. The result is that flat tax proposals usually redistribute from the middle to the extremes.

This paper aims to investigate the effect of the flat tax system on self-employment by necessity and by opportunity. Specifically, the paper examines whether individuals decide to switch from wage-employment to self-employment by necessity or by opportunity when government imposes a flat tax system.

To analyze the association of a flat tax system with occupational choice this paper uses both multinomial and ordinary logit models. In the multi-nominal logit model, this study separates dependent variables into three categories: wage employee, self-employed by necessity and self-employed by opportunity. In the second step of analyzes using the ordinary logit model, this paper studies only self-employed individuals by distinguishing them according to their preferences.

The results suggest that, in countries with the imposed flat tax system, the probability of being self-employed by necessity is low, while the probability of being self-employed by opportunity is high. Moreover, better economic growth in the country also elevates the chances of individuals to be self-employed by opportunity.

Out novel contribution is documenting that flat tax system in transition countries increases the number of individuals self-employed by opportunity compared to self-employed by necessity.

The purpose of this paper is to give a recommendation to the municipalities what local tax/taxes sensu largo (a waste charge or an immovable property tax increased by a local coefficient) are to be collected to achieve expected and necessary incomes and limit the administrative costs.

To reach the aim, it was necessary to analyze the number of municipalities increasing the property tax by the local coefficient and abolishing the charge on communal waste to save money for the waste charges administration. The evidence of municipalities applying the local coefficient was used as a basis for the research. To get the information on charges on communal waste collected in these municipalities with the local coefficient within the past at least five taxable periods, the information from Monitor was used. If there was any such a significant change, then it was necessary to use the bylaws and to do thorough analysis of the reasons.

The hypothesis that a high number of municipalities in the Czech Republic are replacing the charge on communal waste with the local coefficient applicable for the immovable property tax was rejected. In the opinion of the author, the ideal approach is to have just one local tax – immovable property tax. This tax is administered by the state tax office and the revenue should cover the cost of waste management. Adopting only the property tax increased by the local coefficient, it is necessary to explain the benefits to the taxpayers, that is, locals and voters.

The research on the given topic was never done in the Czech Republic, as there is no evidence of local charges collected in individual municipalities.

The authors use laboratory experiments to test two self-assessment tax mechanisms for facilitating land assembly. One mechanism is incentive compatible with a complex tax function, while the other uses a flat tax rate to mitigate implementation concerns. Sellers publicly declare a price for their land. Overstating its true value is penalized by using the declared price to assess a property tax; understating its value is penalized by allowing developers to buy the property at the declared price. The authors find that both mechanisms increase the rate of land assembly and gains from trade relative to a control in which sellers’ price declarations have no effect on their taxes. However, these effects are statistically insignificant or transitory. The assembly rates in our self-assessment treatments are markedly higher than those of prior experimental studies in which the buyer faces bargaining frictions, such as costly delay or capital constraints.

This paper aims to investigate the potential role of property taxes as a revenue source for local government in Tanzania. Often this tax is beset with political and administrative problems that affect its operational efficiencies.

The research is the result of extensive fieldwork undertaken in Tanzania during 2002 to investigate and evaluate the valuations done for purposes of the property tax in Dar es Salaam and eight regional towns.

Urban local government revenues, and in particular those classified as own revenues in Tanzania and other East African countries, are generally not sufficient enough to develop and supply adequate urban services to the region's fast growing urban population. The main findings of the paper highlight the difficulties faced by municipalities in developing and maintaining a property tax system.

The key problems were lack of experienced staff, limited equipment and significant political interference.

This research clearly identified the need for developing countries to recognize the importance of creating sustainable tax sources that are easily managed at low costs. The work found that the property tax system as designed for Tanzania was not sustainable and suggests a range of possible improvements.

The research did indicate that significant results could be achieved through implementing improvements in developing a simplified valuation basis and through greater collection efficiency. The research should be of particular interest to policy and decision makers within other developing countries who are embarked on a process of property tax reform.

This paper reviews recent political proposals for a flat tax within a broad historical perspective. That perspective traces economic and philosophical arguments about a “just” tax from the 16th century to the present, focusing on progressive versus flat marginal tax rates. The conclusion is that none of the flat tax proposals differ dramatically and none proposes a pure flat tax. The political debate is one that focuses on the issue of whether or not an incalculable and only potential inequity cost to society is overshadowed by a calculable benefit by reducing compliance cost and possibly stimulating economic growth by the reduction of marginal tax rates.

A tax based on land value is in many ways ideal, but many economists dismiss it by assuming it could not raise enough revenue. Standard sources of data omit much of the potential tax base, and undervalue what they do measure. The purpose of this paper is to present more comprehensive and accurate measures of land rents and values, and several modes of raising revenues from them besides the conventional property tax.

The paper identifies 16 elements of land's taxable capacity that received authorities either trivialize or omit. These 16 elements come in four groups.

In Group A, Elements 1‐4 correct for the downward bias in standard sources. In Group B, Elements 5‐10 broaden the concepts of land and rent beyond the conventional narrow perception, while Elements 11‐12 estimate rents to be gained by abating other kinds of taxes. In Group C, Elements 13‐14 explain how using the land tax, since it has no excess burden, uncaps feasible tax rates. In Group D, Elements 15‐16 define some moot possibilities that may warrant further exploration.

This paper shows how previous estimates of rent and land values have been narrowly limited to a fraction of the whole, thus giving a false impression that the tax capacity is low. The paper adds 14 elements to the traditional narrow “single tax” base, plus two moot elements advanced for future consideration. Any one of these 16 elements indicates a much higher land tax base than economists commonly recognize today. Taken together they are overwhelming, and cast an entirely new light on this subject.

This article aims to examine academic literature and the taxation regulatory environment in Estonia in relation to small and medium enterprises (SMEs). The objective of the paper is to identify key areas of the taxation regulatory environment which affects SMEs and assess and link important academic literature in relation to those areas with the empirical research. In effect to explore that business reality including Estonia's Soviet historical background and compliance with her EU membership taxation obligations.

This exploratory paper makes use of World Bank Surveys and primary tax law sources, together with qualitative empirical research from an SME manager and a taxation law firm, both from within the country assessed.

It confirms the correlation between economic growth and taxation and identifies the “key” aspects of the taxation regulatory environment for an SME through academic literature reviewed which is linked with the empirical research. This qualitative research provides in‐depth information and fills gaps from previous quantitative research. It emphasises a very positive progression including significant electronic development and compliance with EU directives and regulations has been made by Estonia encouraging SME activity.

This research demonstrates the business reality of the Estonian taxation regulatory environment. Unofficial costs, a legacy from the Soviet period, are virtually non‐existent within the Estonian taxation system. Gaps within World Bank Surveys are filled by the interviews, which give a grass‐roots perspective on taxation regulation affecting an SME.

The research highlights the importance of the taxation regulatory environment and the reality of the regulation and compliance work for SMEs within a relatively new EU member state. Estonia is an important country within Europe's “Northern Dimension” and a former member of the Soviet Union. Consequently, any assessment of its taxation environment can be used as a guideline/model for others from similar backgrounds with similar aspirations.

Nobody has ever liked paying taxes, but individual grumbling is growing to a loud chorus of complaints. The system of federal income taxes has become so complex that few individuals can compute for themselves what they owe and both personal and corporate financial decisions are often based more on their tax consequences than on their soundness from either a production or consumption point of view. All this leads to a perceived unfairness, with some better able than others to take advantage of preferences and loopholes in the system.