Income taxes and benefits among Czech employees: Changes since 1989 and a cross-national comparison

J Vecernik - Available at SSRN 892220, 2006 - papers.ssrn.com
Available at SSRN 892220, 2006papers.ssrn.com
In 1993-1995 restricted and more transparent forms of income redistribution replaced the
extensive and hidden redistribution under the command economy. Macroeconomic data on
the Czech Republic show a very slow decrease in the rate of redistribution (the so-called
consolidated tax quota) from the early 1990s to 2002, but a slight increase since then
(currently at 38 percent of GDP, slightly below the average of European OECD countries). It
is certainly not enough to speak only of averages and aggregates. It is important at the same …
Abstract
In 1993-1995 restricted and more transparent forms of income redistribution replaced the extensive and hidden redistribution under the command economy. Macroeconomic data on the Czech Republic show a very slow decrease in the rate of redistribution (the so-called consolidated tax quota) from the early 1990s to 2002, but a slight increase since then (currently at 38 percent of GDP, slightly below the average of European OECD countries). It is certainly not enough to speak only of averages and aggregates. It is important at the same time to show the redistributive flows and the social identities of taxpayers and benefit recipients. The question is how taxes and benefits interact in shaping household income, and what the net effect of redistribution is.
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