Effects of the Introduction of Family Bonus and Supplementary Child Benefit, the New Tax Relief for Families in Austria. A Microsimulation Study

Marian Fink and Silvia Rocha-Akis

WIFO Bulletin, 2018, vol. 23, issue 14, 131-144

Abstract: This paper analyses the effects of the introduction of the tax relief for families family bonus (Familienbonus) and supplementary child benefit (Kindermehrbetrag) on household income in Austria, using the WIFO-Micromod microsimulation model that is based on the EU-SILC data. The average yearly (person-weighted) equivalised household income increases by 320 €, which corresponds to a relative increase of 1.4 percent. For the families concerned, the reform leads to an increase in the corresponding income by 733 € or 3.1 percent and to a reduction in the average yearly income tax burden by 1,556 €. The effects are most pronounced in the medium range of the household income distribution. The total personal income tax revenue decreases by 1.5 billion € per year.

Keywords: Tax system; family benefits; income distribution; inequality; microsimulation; poverty; tax revenue (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wblltn:y:2018:i:14:p:131-144

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