Effects of flat tax reforms in Western Europe
Recent success of the flat income tax in Eastern Europe raises questions about whether there is scope for such a policy reform in Western Europe as well. We address this by estimating the potential distributional impact of various flat taxes for selected Western European countries. Our simulations show that in specific circumstances a revenue neutral flat tax reform can increase income equality and improve work incentives; however, in most cases there is an equity-efficiency trade-off. We show that the specific flat tax design and the welfare state regime play a key role.
Year of publication: |
2009
|
---|---|
Authors: | Paulus, Alari ; Peichl, Andreas |
Published in: |
Journal of Policy Modeling. - Elsevier, ISSN 0161-8938. - Vol. 31.2009, 5, p. 620-636
|
Publisher: |
Elsevier |
Keywords: | Flat tax reform Income inequality Labour supply incentives Microsimulation |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Effects of flat tax reforms in Western Europe on equity and efficiency
Peichl, Andreas, (2008)
-
Effects of flat tax reforms in Western Europe on equity and efficiency
Paulus, Alari, (2008)
-
Effects of flat tax reforms in Western Europe on income distribution and work incentives
Paulus, Alari, (2008)
- More ...