Effect of Changes in Taxes and Benefits on Redistribution in the Czech Republic Cover Image

Effect of Changes in Taxes and Benefits on Redistribution in the Czech Republic
Effect of Changes in Taxes and Benefits on Redistribution in the Czech Republic

Author(s): Jan Pavel, Leoš Vitek
Subject(s): Economic policy, Welfare systems, Public Finances, Fiscal Politics / Budgeting
Published by: Masarykova univerzita
Keywords: Czech Republic; redistribution; social benefits; tax reforms;
Summary/Abstract: The Czech Republic has over the past decade carried out two waves of tax and benefit reforms. The first one took place in 2005–2006 during the left-wing government and the second one has been carried out in 2008 by the right-wing government. Using EU-SILC data for selected types of households, the paper assesses changes in the distribution of gross incomes and effects of the changes in taxes and benefits on the distribution of incomes after taxes and a provision of social benefits. The analysis is performed using Lorenz curves and Gini coefficients. The results show that the tax system changes the distribution of incomes significantly less than benefit systems.