The Effect of Personal and Family Tax Exemption on Family Size in Palestine

Early in the mentioned period, taxes were characterized by neutrality. It was a kind of tool utilized by local government to revenue in order to be spent in public expenditure. However, it turned to deal with both economical and social aspects. One example is the increase of posterity as a measure for tax exemption as tax paying decreased with more kids in the families of tax payers. The objectives of this study were to investigate the effects of personal and family tax exemption on family size from the tax payers point of view, their opinion toward this type of taxes in relation to their economical and social status, and to shed light on legislators opinion on the increasing posterity issue. A well constructed questionnaire was used to collect data from a random sample of tax payers. The sample size was 249. All data was analyzed using SPSS. The statistical procedures used were as the following: 1. Means and standard deviation 2. T Test. 3. The One Way Analysis of Variance. 4. The Chi Square. The study showed the following results: 1. There is an effect of personal and family tax exemption adopted by the Palestinian Tax law on Palestinian family size. 2. There is a relation between opinion of tax payers and economical and social characters, gender, martial status, family members, educational level, type of work, monthly income and type of household. 3. The Palestinian tax law in general support the increase in posterity, which is parallel to culture and belief of Palestinian people. Some recommendations were proposed by the study such as: 1. The results of this study should be taken and considered by the Palestinian tax legislators. 2. The elude from paying taxes should be treated in order for tax exemption to have a role in housing policy. 3. Gender should be taken in consideration in relation to tax exemption. 4. Exemption rates should be higher for senior citizens in a way to honor them.