Tax and Welfare Reforms in the Czech Republic—Structural Implications and Challenges
March 1, 2008
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Summary
The paper provides an analysis and discussion of key structural implications of the 2007 and 2008 welfare and tax reforms in the Czech Republic. Based on a detailed micro-study of marginal and average effective tax rates for individuals at various points along the earnings curve, it concludes that while incentives to save and invest have improved, work incentives are being severely hampered by high marginal effective tax rates for low- and middle income individuals. The reforms also fail to address the most pressing fiscal concern: to put government finances on a sustainable path.
Subject: Corporate income tax, Income, Personal income, Social security contributions, Wages
Keywords: government spending, labor market, low income, tax burden, tax revenue, WP
Pages:
52
Volume:
2008
DOI:
Issue:
052
Series:
Working Paper No. 2008/052
Stock No:
WPIEA2008052
ISBN:
9781451869149
ISSN:
1018-5941
