Effects of flat tax reforms in Western Europe

Publication type

Journal Article

Authors

Publication date

June 11, 2009

Abstract:

Recent success of the flat income tax in Eastern Europe raises questions about whether there is scope for such a policy reform in Western Europe as well. We address this by estimating the potential distributional impact of various flat taxes for selected Western European countries. Our simulations show that in specific circumstances a revenue neutral flat tax reform can increase income equality and improve work incentives; however, in most cases there is an equity-efficiency trade-off. We show that the specific flat tax design and the welfare state regime play a key role.

Published in

Journal of Policy Modeling

Volume and page numbers

Volume: 31 , p.620 -636

ISSN

1618938

Link

- www.elsevier.com/locate/jpm

Notes

Held online ASL - http://serlib0.essex.ac.uk/record=b1646457~S5

---

Related Publications

• Effects of flat tax reforms in Western Europe on equity and efficiency

  Alari Paulus, Andreas Peichl,

  EUROMOD Working Paper Series - 20080401

#519339