Effects of flat tax reforms in Western Europe on equity and efficiency

Arbeitspapier

The flat income tax has become increasingly popular recently, yet its implementation is limited to Eastern Europe. We analyse the distributional and efficiency effects of flat tax scenarios for Western European countries. Our simulations show that flat tax rates required to attain revenue neutrality with existing basic allowances improve labour supply incentives. However, they result in higher inequality and polarisation. Flat rates necessary to keep the inequality levels unchanged allow for some scope for flat taxes to increase both equity and effi ciency. Our analysis suggests that Mediterranean countries are more likely to benefit from flat taxes.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: EUROMOD Working Paper ; No. EM2/08

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access ; Personal Income, Wealth, and Their Distributions ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
• Thema: flat tax reform ; income distribution ; work incentives ; microsimulation ; Flat Tax ; Steuerreform ; Steuerwirkung ; Arbeitsangebot ; Steuerinzidenz ; Einkommensverteilung ; Westeuropa

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Paulus, Alari ; Peichl, Andreas
• Ereignis: Veröffentlichung
• (wer): University of Essex, Institute for Social and Economic Research (ISER)
• (wo): Colchester
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/64876
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ