During the last decade, improved macroeconomic and budgetary conditions have allowed for fiscal reforms in several EU countries. The main aim behind personal income tax reforms across Europe has been to reduce the tax burden on labour and to encourage work - especially for less productive...

The adverse distributional effects of a flat tax are well known and have been documented by empirical research in several countries, including Belgium. Advocates of the flat tax argue, correctly, that these studies do not take into account agents' behavioural reactions and possible feed back...