Reform of labour taxes in Latvia 2011-2013

Ilmārs Šņucins, Ieva Kodoliņa-Miglāne
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引用次数: 1

Abstract

The paper analyses the motives for and results of the labour tax reforms undertaken by the Latvian government in 2011-2013 with a special focus on the lowwage sector. The reforms were developed with the goal of overcoming negative effects on the labour market caused by the deep economic crisis in 2008-2010 as well as of coping with an increase in labour tax burdens during consolidation. In 2008-2010, Latvia was seriously affected by the global economic crisis and during these years real gross domestic product (GDP) declined by 21 percent. Labour market conditions became worse rapidly and at the beginning of 2010, the unemployment rate reached 21.5 per cent of the economically active population. For the period of 2011-2016, the reforms provide for a reduction in the rates of personal income tax (PIT) and social security contributions (SSC) as well as for an increase in PIT allowances. Taking into account the changes made in labour tax laws, we employed forecasts of average wages and applied the Eurostat methodology to calculate the tax wedge for different groups of employees depending on income level and on the number of their dependants. The results show that the impact of the reform varies greatly and it is more beneficial for employees with dependants and for low-wage earners. The findings of the paper contribute to policy discussions and decisions on the tax wedge, especially in the Euro area. In the period covered by the paper, about half of the Euro area member states (including Latvia) received a country-specific recommendation to address this issue in the context of the European Semester.
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2011-2013年拉脱维亚劳动税改革
本文分析了拉脱维亚政府在2011-2013年进行的劳动税改革的动机和结果,特别关注低工资部门。这些改革的目标是克服2008-2010年严重经济危机对劳动力市场造成的负面影响,以及应对整顿期间劳动税收负担的增加。2008-2010年,拉脱维亚受到全球经济危机的严重影响,实际国内生产总值(GDP)在这几年中下降了21%。劳动力市场状况迅速恶化,2010年初,失业率达到经济活动人口的21.5%。在2011-2016年期间,改革规定降低个人所得税(PIT)和社会保障缴款(SSC)的税率,并增加个人所得税津贴。考虑到劳动税法的变化,我们采用了平均工资的预测,并应用欧盟统计局的方法,根据收入水平和受抚养人的数量,计算不同员工群体的税收楔子。结果表明,改革的影响差异很大,对有家属的员工和低收入者更有利。本文的研究结果有助于税收楔子的政策讨论和决策,特别是在欧元区。在本文所述期间,大约一半的欧元区成员国(包括拉脱维亚)收到了在欧洲学期背景下解决这一问题的国别建议。
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