Distribution of Average, Marginal and Participation Tax Rates among Czech Taxpayers: Results from a TAXBEN Model

Libor Dousek (), Klara Kaliskova and Daniel Münich
Additional contact information
Libor Dousek: CERGE-EI Prague, University of Economics, Prague, http://www.cerge-ei.cz/
Authors registered in the RePEc Author Service: Libor Dusek

Czech Journal of Economics and Finance (Finance a uver), 2013, vol. 63, issue 6, 474-504

Abstract: We present empirical distributions of the average, marginal and participation tax rates on earnings across the population of Czech taxpayers under the current tax-and-benefit system. We quantify significant differences between the taxation of employees and the self-employed: the average tax rates on wage income and business income are 37.4% and 28.1%, respectively, even though the self-employed tend to have higher earnings. On average, employees and the self-employed face effective marginal tax rates of 46.4% and 30.9%, respectively. The tax system exhibits almost no progressivity—the top income decile earns 26.7% of total income and pays 26.7% of total taxes—despite the fact that it is designed to be progressive by providing generous tax credits. There are large dispersions in the tax rates for people with similar earnings.

Keywords: taxben models; average tax rates; marginal tax rates; participation tax rates; Czech Republic (search for similar items in EconPapers)
JEL-codes: D31 H22 H24 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://journal.fsv.cuni.cz/storage/1287_dusek.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:63:y:2013:i:6:p:474-504

Access Statistics for this article

More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Natalie Svarcova ().