Does the type of nominal personal income tax rate affect its progressivity? : a case study from the Czech Republic

Background: The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in the period 1993-2020. Between 1993 and 2007, the nominal tax rate was progressive, while from 2008 until the end of 2020, the nominal rate was linear. Objectives: The paper aims to analyse if the type of nominal tax rate affects personal income tax progressivity. Methods/Approach: The article uses analysis, synthesis, comparison and regression analysis methods. The progressiveness of the tax obligation indicator is used to evaluate the degree of tax progressivity. Results: In the context of the analysis of the degree of tax progressivity, personal income tax is more progressive in the period of validity of the nominal linear rate for taxpayers with incomes below the average wage level. Conclusions: Since the linear rate has been in force, the government in the Czech Republic has often mistakenly presented that tax rate innovations will ensure that everyone pays the same tax.