Hypothetical tax-benefit reforms in Hungary: shifting from tax reliefs to cash transfers for family support

Ana Agundez Garcia () and Michael Christl
Additional contact information
Ana Agundez Garcia: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No 2023-03, JRC Working Papers on Taxation & Structural Reforms from Joint Research Centre

Abstract: This paper evaluates two hypothetical budget neutral reforms that shift resources from family tax expenditures to family cash transfers. We evaluate these reforms based on a structural labor supply model, EUROLAB, which in turn is based on the microsimulation model EUROMOD and EU-SILC data. We find that both reforms have an inequality decreasing impact. However, when looking at labour supply responses for different household types, we show that the reforms have a substantial impact, especially for females in couple households. Additionally, we show that especially females in the middle of the income distribution will reduce labour supply as a response to the reforms.

Keywords: family benefits; tax reform; labour supply; discrete choice; microsimulation; EUROMOD; EUROLAB (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-pub
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publications.jrc.ec.europa.eu/repository/handle/JRC132895 (application/pdf)

Related works:
Journal Article: Hypothetical Tax-Benefit Reforms in Hungary: Shifting from Tax Relief to Cash Transfers for Family Support (2023)
Working Paper: Hypothetical tax-benefit reforms in Hungary: Shifting from tax relief to cash transfers for family support (2023)
Working Paper: Hypothetical tax-benefit reforms in Hungary: Shifting from tax relief to cash transfers for family support (2023)
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:ipt:taxref:202303

Access Statistics for this paper

More papers in JRC Working Papers on Taxation & Structural Reforms from Joint Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Publication Officer ().