Effects of Changes in Tax/Benefi t Policies in Austria 2003–2005
Effects of Changes in Tax/Benefi t Policies in Austria 2003–2005

Summary/Abstract: The aim of this paper is to evaluate whether policy reforms in Austria between 2003 and 2005 were successful in meeting redistributive objectives and in reducing poverty. The authors use the tax/benefi t micro-simulation model EUROMOD for this analysis. In the period under review the 2004-2005 tax reform was introduced and contributions to health insurance were raised. On the benefi t side no major changes took place, the main family benefits were not even indexed to infl ation. The authors fi nd that the measures had no signifi cant impact on poverty and income distribution. However, in total they increased the disposable income of almost all groups of the population.

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