International Conference on Economics, Finance & Business, London

THE IMPACT OF TAXATION CHANGES ON GINI COEFFICIENT IN MEMBER STATES OF EUROPEAN UNION (EU 27)

FLORINA POPA

Abstract:

The efficiency of revenue collection is a process that involves different operations in collection procedures, with the revenue collected being a main source of support for state budget spending. The paper aim was studying the impact of the direct taxes/indirect taxes ratio changes on Gini coefficient (inequality). The main result from the analysis is that the impact of the ratio between the direct taxes and indirect taxes on Gini coefficient (inequality) was pursued from three perspectives: a) increases in the direct taxes/indirect taxes ratio; b) decreases in the direct taxes/indirect taxes ratio; c) other situations regarding the change in the direct taxes/indirect taxes ratio. The paper was accomplished by: studying the scientific literature in the field, selecting, synthesizing and interpreting the ideas retained through the own view of the author; collecting data from the European Commission, DG Taxation and Customs Union, based on Eurostat; Eurostat Gini Coefficient of equivalised disposable income by age, drawing up the table needed in the analysis of economic indicators and processing and analysis of the data collected. The analysis was achieved for Member States of European Union (EU 27), for the period 2014-2022. Finally the paper ends with conclusions which highlights the final results of the research and signalize the three situations met in the analysis, mentioned above.

Keywords: efficiency of tax collecting; taxation changes; impact; Member States of European Union (EU 27); direct taxes; indirect taxes, Gini coefficient (inequality)