Tax and Benefit Reform in the Czech and Slovak Republics
AbstractThis paper analyses the changes to the tax and social security systems that have occurred since Czechoslovakia's `velvet revolution' in 1989. It shows how the tax system is moving to meet the requirements of a market economy. It suggests that a particularly high priority has to be given to avoiding taxes which require administrative discretion and to reducing administrative complexity.A tax-benefit model is used to look at two particular aspects of tax and social security design. It shows that the administratively convenient move to a single-rate VAT could have been achieved without adverse distributional effects, but with a slight increase in overall marginal tax rates. It also analyses the effects of the Czech plan for replacing universal benefits with means-tested benefits. This is shown to reduce budgetary costs and reduce poverty, but at the expense of increasing marginal tax rates.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1151.
Date of creation: Mar 1995
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Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
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- Cecilia Testa, 2005.
"Reforms, lobbies and welfare: A common agency approach,"
Springer, vol. 125(3), pages 305-337, December.
- Cecilia Testa, 2001. "Reform, Lobbies and Welfare: A Common Agency Approach," Royal Holloway, University of London: Discussion Papers in Economics 01/6, Department of Economics, Royal Holloway University of London, revised Dec 2001.
- Coulter, Fiona & Heady, Christopher & Lawson, Colin & Smith, Stephen, 1997. "Social security reform for economic transition: the case of the Czech Republic," Journal of Public Economics, Elsevier, vol. 66(2), pages 313-326, November.
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