Taxflace, její příčiny a projevy ve vybraných zemích

Abstract

This bachelor's thesis focuses on the problem of taxflation, which is the effect of inflation on personal income tax. Methods of description and comparison were used to examine the problem. The objective of the thesis is to compare this influence in two economically developed countries of the European Union, which, however, apply a different system of personal income tax. In the theoretical part of the thesis, the concepts of inflation and taxes and their mutual influence in various tax sectors are first defined in separate sections, in the next chapter the personal income tax systems in the Czech Republic and Belgium are described and explained. In the practical part, taxflation is illustrated using model examples embedded in the tax systems of selected countries. In the case of the Czech Republic, a low rate of taxflation with constant amounts of tax credits is proven. In the case of Belgium, taxflation does not occur even with a high rate of inflation, thanks to the indexation of tax brackets and reliefs.