Personal Income Tax Policy Analysis: Albania vs. United States


  • Agim Binaj
  • Ilir Binaj UNYT, Albania
  • Irini Limaj


Personal income tax has become an important part of the Albania’s revenue system. Revenue from personal income tax was more than 27.9 billion ALL for the year of 2011 which makes up a 3% increase when compared to the previous year. This paper compares and contrasts Albanian and American income tax systems by describing many similarities as well as distinctive characteristics that were found. Professor Agim Binaj of Agricultural University of Tirana highlights the need for a fair personal income tax reform in Albania. This paper concludes with recommendations and an agenda for future research on tax policy using lessons from the United States tax system.

Keywords: Individual income tax; tax system; revenue; uncollected taxes; fiscal reform

JEL Classifications: E62; H3


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Author Biographies

Agim Binaj

Professor at Department of Economics and Agrarian PolicyAgricultural University of Tirana, Albania Managing Partner at ASC CPAs LLC.

Ilir Binaj, UNYT, Albania

LecturerUniversity of New York in Tirana, AlbaniaPartner at ASC-CPAs LLC.




How to Cite

Binaj, A., Binaj, I., & Limaj, I. (2012). Personal Income Tax Policy Analysis: Albania vs. United States. International Journal of Economics and Financial Issues, 3(1), 42–49. Retrieved from