The article analyses the influence of the proportional (linear) and progressive (incremental) personal income tax regimes on the accumulation of human capital. Two models of tax payers' behaviour were used: life cycle model and the model of overlapping generations. Each taxation regime affects the accumulation of human capital in a different way, depending on the model taken into account. In the life cycle model accumulation of human capital is enhanced under conditions of the linear tax system while in the overlapping generations model the progressive taxation seems to be more efficient.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.