Tax theory and policy
- Ending: Examination
- Range: 0P + 2C
- Semester: winter
- Year: 1
- Faculty of Economics and Finance
Teachers
Included in study programs
Teaching results
Learning Outcomes:
- To deepen and acquire the latest theoretical knowledge in the field of taxation and public finance
- To clarify the basic knowledge of tax theory necessary to understand the deeper context of current tax practice
- Develop abstract thinking using modern technology to show how specific tax issues and their understanding are linked to broader economic contexts
- Pay attention to both the macroeconomic and microeconomic implications of taxes in relation to the role of tax policy in the context of the European and global economy
Knowledge and Understanding:
- specify the main differences between tax theory and its possible application in practice
- understand and be able to identify the principles of the basic tax mechanism, from which the actual ‘design’ of the tax system and the possibilities of its application in practice derive
- be able to assess the development of tax policy in a country and, on the basis of the knowledge acquired in theoretical research, be able to predict the development of, or deal with, tax policy issues such as to be able to understand the behavioural effects of taxes, including the impact on consumers, labour supply, savings and investment, entrepreneurship, employment - to formulate and critically evaluate positive benefits as well as negative aspects affecting not only the economic, but also the social and political sphere, primarily using the methods of financial econometrics and experimental economics.
Practical skills and competences:
- Competently assess and interpret, on the basis of modern management practices, the positive/negative features of tax systems in close interaction with the development of basic macroeconomic indicators
- Ability to work independently (including as a manager) or in teams in the field of taxation, tax administration in all institutions of state and local government
- keep abreast of the latest developments in their field, in particular the rapid development and use of ICT, as well as the penetration of digitalisation and the use of new technologies, particularly in the field of taxation.
Indicative content
1. History of tax theories
2. Efficiency of taxation (tax impact in an imperfectly competitive market)
3. Analysis of tax shifting by general economic equilibrium models (Harberger model,
equivalent taxes)
4. Behavioural aspects of taxes (impact of taxes on labour supply, savings, investment)
5. Fairness of taxation - different approaches to tax fairness of taxation (sacrifice theories,
possibility of application in practice)
6. Fairness of taxation - measurement of tax-tax burden, factors affecting tax
burden in terms of sociality and solidarity)
7. Theory of optimal taxation (optimal taxation of consumption and income, normative and positive approaches to optimal taxation)
8. Neutrality of taxation - selected aspects of the tax system affecting the neutrality of the system
9. Tax evasion from the perspective of optimal taxation theory
10. Neutrality of taxation (evaluation of concepts of neutrality of taxation according to selected principles)
11. Current issues of “active” tax policy from national and international aspects
(quantification of income inequality, tax mix, current OECD taxation trends, their acceptance in the Slovak tax system)
12. Tax reforms and their impact at micro and macroeconomic level at home and abroad
13. Models of income taxation (compensatory tax, dual tax, flat tax)
Support literature
Musgrave, Richard a Musgrave Peggy B.: The Theory of Public Finance, Management Press, Praha 1994 – selection;
Allan, Ch., M.: The Theory of Taxation. Harmondsworth : Penguin, 1971.
Levitt Steven, Dubner Stephen: Freakonomics, Premedia Group, s.r.o., Bratislava 2011- selection;
Gruber,J.: Public Finance and Public Policy, Third Edition, 2010
Rosen, H.S., Gayer,T.: Public Finance, 8.Ed. New Jersey: Princeton University Press, 2008;
Kaplow,L.: The Theory of Taxation and Public Economics, New Jersey: Princeton University Press, 2008;
Allingham, M.G.-Sandmo,A.: Income tax evasion:A theoretical analysis, In:Journal of Public Economics, 1972, vol.1, str.323-338;
Articles from domestic and foreign professional and scientific journals dealing with relevant issues.
Requirements to complete the course
Final written exam 100%
Student workload
Total student workload (3 x 26 hrs) = 78 hrs includes:
Attendance at lectures 26 hrs.
Preparation for lectures 10 hrs.
Preparation for examination 42 hrs.
Language whose command is required to complete the course
slovak
Date of approval: 10.03.2025
Date of the latest change: 16.05.2025