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Income Taxes and Social Benefits among Czech Employees - Changes since 1989 and a Cross-national Comparison (in English)

Author

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  • Jiøí Veèerník

    (Institute of Sociology, Academy of Sciences, Prague)

Abstract

Statistical income surveys are used to show the separate and joint effects of taxes and transfers on the distribution of household income among employees in the Czech Republic. On the face of it, the state takes more from and gives less to households, compared with the situation before 1989, and the redistributive effect of the new system is much stronger. In a cross-national comparison, the results depend on the sources and the methods used. When taxes and benefits are taken separately, it can be said that the Czech state taxes upper-income households considerably, but not to an extreme extent, and that the targeting of benefits to low-income families is narrow, though not the narrowest. When a summary measure is applied, the Czech system appears to be no more redistributive than those of other countries. It is found that personal income tax reforms affect redistribution flows only to a very limited degree.

Suggested Citation

  • Jiøí Veèerník, 2006. "Income Taxes and Social Benefits among Czech Employees - Changes since 1989 and a Cross-national Comparison (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 56(1-2), pages 2-17, January.
    • Handle: RePEc:fau:fauart:v:56:y:2006:i:1-2:p:2-17
    as

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    File URL: http://journal.fsv.cuni.cz/storage/1042_s_002_017.pdf
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    References listed on IDEAS

    as
    1. Newbery, David M G, 1995. "Tax and Benefit Reform in Central and Eastern Europe," CEPR Discussion Papers 1167, C.E.P.R. Discussion Papers.
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    3. Immervoll, Herwig, 2002. "The distribution of average and marginal effective tax rates in European Union Member States," EUROMOD Working Papers EM2/02, EUROMOD at the Institute for Social and Economic Research.
    4. Ondřej Schneider & Tomáš Jelínek, 2005. "Distributive Impact of Czech Social Security and Tax Systems: Dynamics in Early 2000s," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(3), pages 221-237.
    5. Jiri Vecernik, 2001. "From Needs to the Market: Changing Inequality of Household Income in the Czech Transition," William Davidson Institute Working Papers Series 370, William Davidson Institute at the University of Michigan.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Czech Republic; redistribution of income; social benefits; tax system;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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