Dimensions of tax burden: a review on OECD countries

• Autor: Celikay, Ferdi
• Formato: artículo
• Fecha de Publicación: 2020
• Institución: Universidad ESAN
• Repositorio: ESAN-Institucional
• Lenguaje: inglés
• OAI Identifier: oai:repositorio.esan.edu.pe:20.500.12640/2546
• Enlace del recurso: https://revistas.esan.edu.pe/index.php/jefas/article/view/57; https://hdl.handle.net/20.500.12640/2546; https://doi.org/10.1108/JEFAS-12-2018-0138
• Nivel de acceso: acceso abierto
• Materia: Public economics; Taxation; Tax burden; System generalized method of moments approach; OECD countries; Economía pública; Tributación; Carga tributaria; Método de los momentos generalizado; Países de la OCDE; https://purl.org/pe-repo/ocde/ford#5.02.04

Purpose: The tax burden, defined as the ratio of the collected taxes in a particular period against the total product, is commonly used to determine the effect offiscal and tax policies on the socioeconomic structure.The purpose of this study is to examine how the changes in some macroeconomic indicators affect the taxburden. Design/methodology/approach – System generalized method of moments approach is used for 34 Organisation for Economic Co-operation and Development (OECD) members in the period of 1993-2016. Findings – Based on the researchfindings, variables such as income per capita, foreign trading volume, thecapacity of employment, unemployment and economic share of industry sector effect tax burden in astatistically significant and positive direction. The reason that lies behind the positive effect of unemploymenton tax burden is the fact that the sense of social state is not abandoned. Thus, it is predicted that the state willincrease public transfer expenditures in the short term due to unemployment, this increase will impose afinancial burden on the public sector both in the medium and long term and finally, there will be an increase inthe tax burden. Originality/value – Results in the literature suggest that there are many reasons for increasing tax burdensuch as socio-economic development,financial and organizational structure and the globalization process.However, according to this study, it seems that gross domestic product per capita, the size of the industrysector, openness, employment capacity and unemployment rate also have a positive and significant effect ontax burden in the long run. Ultimately, these results demonstrate that tax burden, one of the most importantindicators of the public sector size in the sample of the states and period in hand, is influenced positively by allindependent variables and increases slightly but surely. These results suggest that the tax state is still adeterminative factor in the socioeconomicfield within its taxation tools.