| Abstract [eng] |
In the modern welfare state, the tax system performs not only a fiscal, but also a social and institutional function, as it forms public finances, finances public services, implements income redistribution, and creates preconditions for public welfare. However, the impact of tax system should not be assessed solely from the perspective of the state‘s financial sustainability or macroeconomic indicators, since tax policy directly affects the individual perception of tax payers‘ welfare. The tax burden, disposable income, availability of social guarantees, quality of public services, perception of the fairness of the tax system, trust in public institutions, and tax morale can have a significant impact on how taxpayers assess their welfare. This topic is particularly relevant in Lithuania, as there is a lack of integrated approach to what factors, from the taxpayers‘ perspective, are related to their welfare. The problem of the final master‘s project is based on the fact that although the tax system is considered one of the most important instruments for creating state welfare, it is not sufficiently clear what specific factors determine taxpayers‘ welfare. The objects of the study is the factors determining taxpayers‘ welfare. The aim of the work is to identify the factors determining taxpayers‘ welfare in Lithuania. To achieve this aim, the following objectives were set: 1) to conceptually substantiate the factors determining taxpayers‘ welfare in the context of the public finance system; 2) to review the legal regulation of the tax system in order to identify factors significant to taxpayers‘ welfare; 3) to empirically investigate the factors influencing taxpayers‘ welfare in Lithuania. The research applied a mixed research strategy, combining the analysis of scientific literature, the analysis of legal acts and strategic documents, the analysis of secondary statistical data, and quantitative empirical research. In the empirical part of the study, a questionnaire survey was conducted, in which 224 respondents participated, and the collected data were analyzed using descriptive statistics, reliability analysis, Spearman correlation analysis, and multiple regression analysis methods. The results of the research revealed that taxpayers‘ welfare is a complex phenomenon determined not only by economic, but also by institutional and psychological factors. Theoretical analysis has shown that taxpayers‘ welfare can be understood as the result of the interaction between objective economic conditions, subjective assessment of welfare, and the functioning of public institutions. The legal analysis revealed that although the concept of taxpayers‘ welfare is not explicitly established in legal acts, many principles of tax system regulation, such as fairness, proportionality, clarity, reduction of administrative burden and protection of taxpayers‘ rights, are directly related to the assumptions of ensuring welfare. The results of the empirical study have shown that the strongest links with subjective taxpayers‘ welfare are established in the areas of financial situation, assessment of public services, perceived tax return, assessment of the fairness of the tax system, and trust in public institutions. A more detailed analysis revealed that income sufficiency, financial security, accessibility of public services, and the perception of receiving adequate benefits in return for taxes paid are particularly significant factors. The results of the multiple regression analysis showed that the most important factors, independently related to subjective welfare, are financial situation, assessment of public services, and tax morale. The obtained results allow to conclude that taxpayers‘ welfare cannot be assessed solely through the prism of fiscal burden or income redistribution, as the quality of public institutions‘ performance, the clarity of the tax system, perceived fairness, and citizens‘ trust in the public sector also play a significant role. In order to strengthening taxpayers‘ welfare in Lithuania, a comprehensive approach is necessary, including not only improving economic conditions, but also increasing the quality of public services, more transparent communication of tax use, reducing the administrative burden, and strengthening trust in public institutions. |
