Progressive Tax Reforms in Flat Tax Countries
The adoption of flat tax systems in Central and Eastern European countries have often been supported by arguments of simplicity, higher
compliance and lower distortionary effects. However, since income inequality is high in these countries, the question of introducing some
progressivity has come to the fore in both policy and academic circles. In this paper, we combine microsimulation and macro models to analyze
the effects of moving from a flat to a progressive tax system and we find that a reduction in income inequality can be achieved with positive,
albeit negligible, employment and growth impact.
BARRIOS Salvador;
IVASKAITE-TAMOSIUNE Viginta;
MAFTEI Anamaria;
NARAZANI Edlira;
VARGA Janos;
2020-02-18
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
JRC118043
0012-8775 (online),
https://www.tandfonline.com/doi/pdf/10.1080/00128775.2019.1671201,
https://publications.jrc.ec.europa.eu/repository/handle/JRC118043,
10.1080/00128775.2019.1671201 (online),
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