Page 6 - IDEA Studie 14 2015 Zdaneni vysokoprijmovych osob

in total income. The taxation of top incomes is one of the lowest in international comparisons, both in absolute levels and taxation of average incomes.
 Using realistically selected input parameter values, the optimal marginal tax rates imposed on the highest incomes range between 33–43%.
 Given a number of non-systemic changes in the past, it is desirable to consolidate changes in the taxation of top incomes. We propose a reform that would significantly simplify the taxation of top incomes and make it more transparent. The tax bases for health and social insurance for employees and self-employed persons would be consolidated, introducing a single ceiling on health and social insurance at the level of four times the average gross salary, while gross income exceeding this ceiling would be taxed at the top income tax rate of 40%.
 In consequence, the proposed reform brings the taxation system closer to a “flat tax” than any legislation which has been in effect in the Czech Republic since 1989.
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