The Dominance of Indirect Taxes in Estonian State Budget

Authors

  • Olev Raju University of Tartu

DOI:

https://doi.org/10.15157/tpep.v17i0.916

Keywords:

Taxation, tax burden, Estonian state budget, Ramsey taxes, indirect tax optimum

Abstract

Recession has sharply erected the question of tax burden and the optimal proportion of different kinds of taxes among the incomes of the budget. Indirect taxes and consumption taxes, which proportion is different according to different methodologies, dominate in Estonian state budget. The buoyancy of a tax system based on taxes of that kind is especially weak during the recession. Difficulties concerning the incomes of budget have arisen the necessity for lifting taxes, which is possible as the tax burden is low now. But a sharp question of the optimal level of taxes is going to be raised. A formula for indirect tax optimum according to Ramsey taxes and Slutski decomposition has been proposed in the article.

Downloads

Download data is not yet available.

Downloads

How to Cite

Raju, O. (2009). The Dominance of Indirect Taxes in Estonian State Budget. Estonian Discussions on Economic Policy, 17. https://doi.org/10.15157/tpep.v17i0.916

Issue

Section

Articles. Artikeln. Artiklid