Mitja Cok (Faculty of Economics, University of Ljubljana) Boris Majcen (Institute for Economic Research, Ljubljana) Miroslav Verbic (Institute for Economic Research, Ljubljana) Marko Kosak (Faculty of Economics, University of Ljubljana)
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In 2007 Slovenia launched a comprehensive reform of its tax system. To estimate the different proposals (including a flat-tax proposal) and their overall effect on individual taxpayers and government budget a static micro-simulation model was constructed and combined with a computable general equilibrium model. It uses a large, comprehensive database (6% of the population) provided by relevant ministries and government agencies and proved to be a reliable tool during implementation of the reform. In the paper, the main characteristics of both models are presented along with the results of different reform scenarios, including those which finally passed the parliament and now form part of the Slovenian tax system.
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Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
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