Prélèvements fiscaux et prestations sociales en Belgique : l’impact de vingt années de réformes

Over the past twenty years, Belgium has seen major reforms, both in taxes, included payroll taxes, and in social transfers. These reforms played a key role on labour supply and on the evolution of households? disposable income. This paper analyses simultaneously the changes in personal income tax, payroll taxes and social security benefits over the period 1992-2012. In order to account for heterogeneity among households we simulate the effects of reforms using the microsimulation model Mefisto-Euromod and EU-SILC data. The results show that during this period reforms have been favorable to the poor and that, in general, income inequalities have been reduced. However, these advances have as a counterpart the increase in the marginal cost of public funds. The work premium, « bonus à l?emploi », had a favorable effect on the implicit tax rate affecting labor force participation ; however, the increase in replacement income, especially unemployment benefits, had the opposite effect.