![]() The empirical results confirm positive relationship between Gini index and the growth rates of GDP per capita, the gross average income and net average income in system of proportional income tax. National statistical institute of Bulgaria data (12 observations) has been used. The research covers the period from 2008 till 2019. The methods of Ordinary Least Square (OLS) and correlation were applied to determine the impact of proportional income tax on income inequality in Bulgaria. The relationship between the Gini index and the growth rates of GDP per capita, the gross average income and net average income was studied. The article aims to evaluate the impact of the proportional income tax without non-taxable minimum on inequality in Bulgaria, measured by the Gini index. The main criticisms towards the proportional income tax is that it leads to an increase of the inequality after taxation. But four of them have replaced it with the progressive tax yet. ![]() The proportional income tax is popular in countries of Central and East Europe and 14 CEE countries adopted it with different tax rates from 1994 till 2008 year. ![]()
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