Issue 1 (2015)


Abstract: Progressive method of taxing personal income is one of the most effective ways of distributing financial resources among taxpayers. This article aims to emphesize the advantage of progressive taxation compared to proportional method. Though, herewith we highlight the risks to be considered when aquiring the progressive taxation method. The essey suggests to discuss alternative principles to justify Personal Income Tax, which have been formulated recently and tend to aquire rising attention among analysts and tax law scholars. The essey aims to measure progressive method of personal income taxation in legal perspective, by setting aside economic factors. Doing so, we may doubt the essey will fail to reflect the objective reality, still it offers alternative legal point of view and strengthens ground for legal dispute within tax law as interdisciplinary study. Facts and reasoning lead to following statements: Taking into account the inequality measures in Georgia, given the GINI coefficient, resourse redistribution is by all means the task of leading priority, to achieve diminishing social inequality and to guarantee equal opportunities for self-realization and promotion of democracy, etc. It is important to comprehand that the choice preferring progressive taxation is neccessary and effective in the very circumstances we live through. The fact that European Countries intensively discuss transition to fl at tax system does not neccessarily require us to follow without objections. Though the tendency implies that the inequality measures in European countries are already fixed results achieved among others with the very method of taxation in effect till now.