Redistribution within the tax-benefit system in Austria

Michael Christl, Monika Koeppl-Turyna, Hanno Lorenz and Dénes Kucsera
Authors registered in the RePEc Author Service: Monika Irena Köppl-Turyna

No 2020-02, JRC Working Papers on Taxation & Structural Reforms from Joint Research Centre

Abstract: The aim of this study is to analyze redistribution within the Austrian tax-benefit system. In this work we take a comprehensive view and include not only direct taxation and cash benefits, but also indirect taxes and in-kind transfers. We look at two kinds of redistribution: between the households belonging to different income groups, and between generations, taking the life-cycle perspective. Our analysis shows that indirect taxes, as known from the previous literature, have a regressive effect on the tax-benefit system. On the contrary, in-kind benefit seem to have a progressive effect. To analyse the impact of both, we extend our income concept by both, indirect taxes and in-kind benefits. If we look on the distributional impact, we find that the inequality-enhancing effect of indirect taxes is more than off-set by the inequality-reducing effect of in-kind benefits. The Gini coefficient increases from 0.24 to 0.26 due to indirect taxes, but when adding in-kind benefits, the Gini coefficient is reduced to 0.23. The overall effect of both, indirect taxes and in-kind benefits is progressive.

Keywords: tax-benefit model; microsimulation; EUROMOD; welfare state; Austria; in-kind benefits; taxation (search for similar items in EconPapers)
JEL-codes: D31 H24 I38 (search for similar items in EconPapers)
Pages: xx pages
Date: 2020-04
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Redistribution within the tax-benefits system in Austria (2020)
Working Paper: Redistribution within the tax-benefit system in Austria (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:taxref:202002

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