Disinformation affects many Western liberal democracies. It undermines public trust in important values of free societies, the institutional frameworks of the European Union (EU) and NATO, civil liberties, different minorities, and the market economy.
“Fake news!” The phrase has been thrown about so much lately that it lost most of its meaning and gravitas. But what does it actually mean? One definition explains it as “deliberately presenting false information as news” and differentiates it as a subset of disinformation.
We are pleased to present the twelfth issue of 4liberty.eu Review, titled “Taxing Taxation: Labor and Capital in CEE”. This time our primary focus is the taxation of labor and capital – from the cases of Poland and the Czech Republic, to Ukraine, Bulgaria, and Bosnia and Herzegovina.
Paying taxes does not need to (and should not!) be taxing. Quite the contrary – it must be clear, straightforward, effortless, and taxpayer-friendly. What every taxation system needs is thus sensible policymakers who would look at the state expenditures and think of the ways of improving the exiting system and tax collection mechanisms.
Taxation is an involuntary payment levied on various entities in order to finance the state budget1. Clearly, the tax burden is heavily influenced by the philosophy of the role of the state in the public life, as well as quantity and quality of public services rendered.
The final effect of the carbon tax is determined by the way in which additional resources are handled. Every tax results in reallocation of scarce resources for purposes less desired by consumers. Not only do taxes diminish the utility of a consumer, but they also have a negative impact on economic growth.
Sectoral tax, i.e. higher taxation, which affects only selected sectors of the economy (such as banking, insurance, energy, telecommunications, or the information technology segment) is considered to be an effective tool for increasing state budget revenues.
Currently, the Czech Republic does not have a separate capital gains tax for individuals or for corporations; capital gains are included in PIT and CIT. There are also a few cases in which capital gains are exempt, mainly pertaining to property.
The majority of people around the world complain about taxes they have to pay. However, in the case of Poland, it is not only the size of the tax burden that poses a problem, but also complicated and unclear rules in place.