Distribution of personal income tax changes in Slovenia

Mitja Cok, Joze Sambt, Marko Kosak, Miroslav Verbič and Boris Majcen

MPRA Paper from University Library of Munich, Germany

Abstract: Slovenia belongs to a group of EU member states that have reduced their personal income tax burden during the current financial and economic crisis. The latest changes, introduced in the personal income tax system during the last two years, have primarily reduced the tax burden on low-income taxpayers. However, this was only the last step in a series of personal income tax reforms since 2004 that have on average reduced the tax burden on all taxpayers. Using an exclusive database of taxpayers and utilising a general-equilibrium modelling platform, we assess the consequences of these reforms at both the micro and the macro level. From a macroeconomic point of view, the initial positive consequences of higher private consumption and welfare are declining over time due the increased budget deficit and reduced investment.

Keywords: general equilibrium model; income inequality; macroeconomic effects; microsimulation; personal income tax; Slovenia; tax reform (search for similar items in EconPapers)
JEL-codes: D31 D63 H23 H24 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-acc
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Journal Article: Distribution of personal income tax changes in Slovenia (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:32704

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