Redistribution within the tax-benefit system in Austria

Arbeitspapier

The aim of this study is to analyze redistribution within the Austrian tax-benefit system. In this work we take a comprehensive view and include not only direct taxation and cash benefits, but also indirect taxes and in-kind transfers. We look at two kinds of redistribution: between the households belonging to different income groups, and between generations, taking the life-cycle perspective. Our analysis shows that indirect taxes, as known from the previous literature, have a regressive effect on the tax-benefit system. On the contrary, in-kind benefit seem to have a progressive effect. To analyse the impact of both, we extend our income concept by both, indirect taxes and in-kind benefits. If we look on the distributional impact, we find that the inequality-enhancing effect of indirect taxes is more than off-set by the inequality-reducing effect of in-kind benefits. The Gini coefficient increases from 0.24 to 0.26 due to indirect taxes, but when adding in-kind benefits, the Gini coefficient is reduced to 0.23. The overall effect of both, indirect taxes and in-kind benefits is progressive.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: JRC Working Papers on Taxation and Structural Reforms ; No. 02/2020

Classification and Topics

• Classification: Wirtschaft ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Personal Income, Wealth, and Their Distributions
• Subject: tax-benefit model ; EUROMOD ; welfare state ; Austria ; in-kind benefits

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Christl, Michael ; Köppl-Turyna, Monika ; Lorenz, Hanno ; Kucsera, Dénes
• Event: Veröffentlichung
• (who): European Commission, Joint Research Centre (JRC)
• (where): Seville
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/248815
• Last update: 10.03.2025, 11:45 AM CET