Pestel, Nico; Sommer, Eric - 2015
distribution of income in Germany. We simulate stepwise increases in the value-added tax (VAT) rate, which are compensated by … revenue-neutral reductions in income-related taxes. We differentiate between the personal income tax (PIT) and social security … impact of such a tax shift in the short run. When accounting for labor supply adjustments, the adverse distributional impact …