Open AccessTAX ON FREE TIME
Author(s) -
Justyna Konsek-Ciechońska
Publication year - 2019
Publication title -
knowledge
Language(s) - English
Resource type - Journals
eISSN - 2545-4439
pISSN - 1857-923X
DOI - 10.35120/kij3101101k
Subject(s) - state (computer science) , economics , balance (ability) , tax policy , fiscal policy , point (geometry) , order (exchange) , public economics , economic policy , economic system , tax reform , macroeconomics , finance , medicine , geometry , mathematics , algorithm , computer science , physical medicine and rehabilitation
Tax constitutes one of economic tools of the policy of the state that makes it possible to affect the form of socio-economic relations between the state and the taxpayers. According to many scientists, proper functioning of the entire state and its institutions depends on effective collection of incomes, vast majority of which, approx. 80-90% is constituted by tax incomes48. Demand of the state for financial resources, especially within last decades has been constantly growing. Meanwhile, 100 years ago, J. Schumpeter already stated that high level of fiscalism adversely affects the growth of economy, and exceeding the boundaries of fiscal capabilities of the state may lead to a deep crisis49.However, from the point of view of achieving the fiscal and non-fiscal goals efficiently, the most important issue of the tax policy should be to burden the citizens with public tributes in an even and moderate manner. There is no doubt that it is difficult to determine the most optimal form of tax system, both in fiscal and non-fiscal aspect. It is not an easy task to balance, in the tax system, the goal of efficiency and justice of taxation, in simultaneous consideration of its social and economic size. Each system that would efficiently and rationally affect the economy and society of particular state must be based on particular principles in order to properly fulfill its functions, including social functions.Free time constitutes specific goods, as on one hand it is a substitute with respect to other goods when the individual makes a decision related to dividing the budget between free time and work. More free time is less time dedicated to work, which leads to less income and consumption. On the other side, when the decision related to structure of free time and work is made, free time becomes complementary with respect to goods that are consumed, since it is difficult to consume anything without free time. What would happen if the state imposed lump sum, income and consumption tax on free time as well?The aim of this paper is to present the possibilities of taxation of free time and to present the manner in which lump sum, income and consumption tax affect the social welfare. The research method that was used in the paper is literature studies and sources of the tax law in force.