Advanced Search
MyIDEAS: Login to save this article or follow this journal

Effects of flat tax reforms in Western Europe

Contents:

Author Info

  • Paulus, Alari
  • Peichl, Andreas

Abstract

Recent success of the flat income tax in Eastern Europe raises questions about whether there is scope for such a policy reform in Western Europe as well. We address this by estimating the potential distributional impact of various flat taxes for selected Western European countries. Our simulations show that in specific circumstances a revenue neutral flat tax reform can increase income equality and improve work incentives; however, in most cases there is an equity-efficiency trade-off. We show that the specific flat tax design and the welfare state regime play a key role.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6V82-4WH2KWB-2/2/30b73703125c76a4432553b65178513b
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 31 (2009)
Issue (Month): 5 (September)
Pages: 620-636

as in new window
Handle: RePEc:eee:jpolmo:v:31:y:2009:i:5:p:620-636

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: Flat tax reform Income inequality Labour supply incentives Microsimulation;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. repec:fth:bfdipa:5/2000 is not listed on IDEAS
  2. Kuismanen, Mika, 2000. "Labour Supply and Income Tax Changes: A Simulation Study for Finland," Research Discussion Papers 5/2000, Bank of Finland.
  3. Gorodnichenko, Yuriy & Martinez-Vazquez, Jorge & Peter, Klara Sabirianova, 2007. "Myth and Reality of Flat Tax Reform: Micro Estimates of Tax Evasion Response and Welfare Effects in Russia," IZA Discussion Papers 3267, Institute for the Study of Labor (IZA).
  4. Elettra Agliardi & Rossella Agliardi, 2007. "Progressive Taxation and Corporate Liquidation: Analysis and Policy Implications," Working Paper Series 29-07, The Rimini Centre for Economic Analysis, revised Jul 2007.
  5. Ruud A. De Mooij & Bas Jacobs & Kees Folmer, 2007. "Analyzing a Flat Income Tax in the Netherlands," CESifo Working Paper Series 1890, CESifo Group Munich.
  6. de Jager, Nicole E. M. & Graafland, Johan J. & Gelauff, George M. M., 1996. "A negative income tax in a mini-welfare state: A simulation exercise with mimic," Journal of Policy Modeling, Elsevier, vol. 18(2), pages 223-231, April.
  7. Clemens Fuest & Andreas Peichl & Thilo Schaefer, 2008. "Is a flat tax reform feasible in a grown-up democracy of Western Europe? A simulation study for Germany," International Tax and Public Finance, Springer, vol. 15(5), pages 620-636, October.
  8. repec:ese:emodwp:em9-01 is not listed on IDEAS
  9. Paulus, Alari & Peichl, Andreas, 2008. "Effects of Flat Tax Reforms in Western Europe on Income Distribution and Work Incentives," IZA Discussion Papers 3721, Institute for the Study of Labor (IZA).
  10. European Commission, 2011. "Taxation trends in the European Union: 2011 edition," Taxation trends 2011, Directorate General Taxation and Customs Union, European Commission.
  11. Ugo Colombino & Steinar Strøm & Rolf Aaberge, 2000. "Labor supply responses and welfare effects from replacing current tax rules by a flat tax: Empirical evidence from Italy, Norway and Sweden," Journal of Population Economics, Springer, vol. 13(4), pages 595-621.
  12. Marta González-Torrabadella & Josep Pijoan-Mas, 2006. "Flat tax reforms: a general equilibrium evaluation for Spain," Investigaciones Economicas, Fundación SEPI, vol. 30(2), pages 317-351, May.
  13. Anne-Marie Brook & Willi Leibfritz, 2005. "Slovakia's Introduction of a Flat Tax as Part of Wider Economic Reforms," OECD Economics Department Working Papers 448, OECD Publishing.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Peichl, Andreas, 2008. "The Benefits of Linking CGE and Microsimulation Models: Evidence from a Flat Tax Analysis," IZA Discussion Papers 3715, Institute for the Study of Labor (IZA).
  2. Nina Hetzer & Andreas Peichl, 2010. "Steuerstrukturreform trotz leerer Kassen?!," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(01), pages 28-35, 01.
  3. Schiau Laura-Liana & Moga Aura Carmen, 2009. "THE FLAT TAX EFFECTS a€“ THEORETICAL AND EMPIRICAL EVIDENCE IN WESTERN AND EASTERN EUROPEAN COUNTRIES," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 343-348, May.
  4. Aristei, David & Perugini, Cristiano, 2010. "Preferences for redistribution and inequality in well-being across Europe," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 176-195, March.
  5. Cristián Mardones Poblete, 2010. "Evaluando Reformas Tributarias en Chile con un Modelo CGE," Estudios de Economia, University of Chile, Department of Economics, vol. 37(2 Year 20), pages 243-284, December.
  6. Fuest, Clemens & Peichl, Andreas & Schaefer, Thilo, 2007. "Is a Flat Tax Feasible in a Grown-up Welfare State?," IZA Discussion Papers 3142, Institute for the Study of Labor (IZA).
  7. Maza, Adolfo & Villaverde, José, 2011. "EU regional convergence and policy: Does the concept of region matter?," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 889-900.
  8. Sasa Randelovic & Jelena Zarkovic Rakic, 2013. "Improving work incentives in Serbia: evaluation of a tax policy reform using SRMOD," International Journal of Microsimulation, Interational Microsimulation Association, vol. 1(6), pages 157-176.
  9. Klara Sabirianova Peter & Steve Buttrick & Denvil Duncan, 2007. "Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0721, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  10. repec:ese:emodwp:em9-09 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:31:y:2009:i:5:p:620-636. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.