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dc.contributor.authorDecoster, Andréen_US
dc.contributor.authorDe Swerdt, Krisen_US
dc.contributor.authorOrsini, Kristianen_US
dc.date.accessioned2010-02-24en_US
dc.date.accessioned2012-10-15T14:13:06Z-
dc.date.available2012-10-15T14:13:06Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/64895-
dc.description.abstractThe adverse distributional effects of a flat tax are well known and have been documented by empirical research in several countries, including Belgium. Advocates of the flat tax argue, correctly, that many of these studies do not take into account agents' behavioural reactions and possible feed back effects. One of the important effects in this context is the potential increase in labour supply and the resulting increase in the taxable base and decrease in unemployment allowances. In this study we calculate the cost recovery based on a micro-simulation model that includes a labour supply model. We find that there is indeed a clearly positive effect on labour supply and hence also on the tax base. By introducing a revenue-neutral flat tax, labour supply increases by approximately 47,000 full-time equivalents. However, the effect is limited because, compared to a static scenario, the cost recovery only allows the revenue-neutral flat tax to decrease from 38.5% to 37%. Furthermore, there is little or no impact of these employment effects on the strongly regressive nature of a flat tax reform.en_US
dc.language.isoengen_US
dc.publisherUniv. of Essex, Institute for Social and Economic Research Colchesteren_US
dc.relation.ispartofseriesEUROMOD Working Paper EM8/08en_US
dc.subject.jelC81en_US
dc.subject.jelD31en_US
dc.subject.jelH22en_US
dc.subject.jelH24en_US
dc.subject.jelJ22en_US
dc.subject.ddc330en_US
dc.subject.keywordflat taxen_US
dc.subject.keywordincome distributionen_US
dc.subject.keywordmicrosimulationen_US
dc.subject.keywordlabour supplyen_US
dc.subject.stwEinkommensverteilungen_US
dc.subject.stwFlat Taxen_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwSteueraufkommenen_US
dc.subject.stwBelgienen_US
dc.titleA Belgian flat income tax: Effects on labour supply and income distributionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn58383180Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:EUROMOD Working Paper Series, Institute for Social and Economic Research (ISER), University of Essex

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