Arbeitspapier
Progressive tax reforms in flat tax countries
Much of the literature on flat tax reforms has highlighted the benefits of introducing flat personal income tax systems in transition economies. The advocated benefits of flat tax systems range from their simplicity, higher compliance and lower distortionary effects on growth and employment. These arguments have often been cited to support policy recommendations favouring the adoption of flat tax systems in Central and Eastern European (CEE) countries in the 1990s and the 2000s. However since income inequality is notoriously high in these countries, the question of introducing some progressivity in the tax system has come to the fore in both policy and academic circles. In this paper, we analyse the fiscal, redistributive and macroeconomic impact of (re-)introducing progressivity in a number of CEE countries with flat tax systems. Combining microsimulation and macro models, we find that a significant reduction in income inequality can be achieved by moving from a flat to a progressive tax system with positive, albeit negligible, macroeconomic and employment impact. The magnitude of these effects depends on country-specificities and tax system characteristics, due in particular to the existence of tax allowances and tax credits.
- Sprache
-
Englisch
- Erschienen in
-
Series: JRC Working Papers on Taxation and Structural Reforms ; No. 02/2018
- Klassifikation
-
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fiscal Policies and Behavior of Economic Agents: Household
Measurement and Analysis of Poverty
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- Thema
-
Flat tax
microsimulation model
DSGE model
inequality progressivity
employment
growth
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Barrios, Salvador
Ivaskaite-Tamosiune, Viginta
Maftei, Anamaria
Narazani, Edlira
Varga, Janos
- Ereignis
-
Veröffentlichung
- (wer)
-
European Commission, Joint Research Centre (JRC)
- (wo)
-
Seville
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Barrios, Salvador
- Ivaskaite-Tamosiune, Viginta
- Maftei, Anamaria
- Narazani, Edlira
- Varga, Janos
- European Commission, Joint Research Centre (JRC)
Entstanden
- 2018
Ähnliche Objekte (12)
Progressive Tax Reforms in Flat Tax Countries
Progressive tax reforms in flat tax countries
Tax reforms in developing countries
Tax reforms and equity in ACP countries
Should High-tax Countries Pursue Revenue-neutral Ecological Tax Reforms? A Comment
Effective Corporate Taxation, Tax Incidence and Tax Reforms: Evidence from OECD Countries
Rate cutting tax reforms and corporate tax competition in Europe
Rate Cutting Tax Reforms and Corporate Tax Competition in Europe
Tax Morality and Progressive Wage Tax
From the Global Income Tax To the Dual Income Tax: Recent Tax Reforms in The Nordic Countries.
Norwegian Income Tax Reforms
Tax reforms in Ghana
Progressive Tax Reforms in Flat Tax Countries
Progressive tax reforms in flat tax countries
Tax reforms in developing countries
Tax reforms and equity in ACP countries
Should High-tax Countries Pursue Revenue-neutral Ecological Tax Reforms? A Comment
Effective Corporate Taxation, Tax Incidence and Tax Reforms: Evidence from OECD Countries
Rate cutting tax reforms and corporate tax competition in Europe
Rate Cutting Tax Reforms and Corporate Tax Competition in Europe
Tax Morality and Progressive Wage Tax
From the Global Income Tax To the Dual Income Tax: Recent Tax Reforms in The Nordic Countries.
Norwegian Income Tax Reforms
Tax reforms in Ghana
Progressive Tax Reforms in Flat Tax Countries
Progressive tax reforms in flat tax countries
Tax reforms in developing countries
Tax reforms and equity in ACP countries
Should High-tax Countries Pursue Revenue-neutral Ecological Tax Reforms? A Comment
Effective Corporate Taxation, Tax Incidence and Tax Reforms: Evidence from OECD Countries
Rate cutting tax reforms and corporate tax competition in Europe
Rate Cutting Tax Reforms and Corporate Tax Competition in Europe
Tax Morality and Progressive Wage Tax
From the Global Income Tax To the Dual Income Tax: Recent Tax Reforms in The Nordic Countries.
Norwegian Income Tax Reforms