Abstract
In this paper, we summarize our previous research into the distributive effects of the tax and social systems in the Czech Republic. We construct a measure of the total tax burden for ten income deciles and we measure it against social benefits distribution. Our analysis shows that only the poorest decile gains from the combined tax and social systems, as its income is lifted by almost 10%. On the other hand, income of the five richest deciles is cut by 30-40%. This combination creates a substantial poverty trap for poorest households. While income taxes are (mildly) progressive, the paper shows that consumption taxes (excise taxes and to a larger extent value added tax) are highly regressive. Our analysis, thus, confirms a high level of redistribution of income and strong disincentives for labour market participation of low-income groups in the Czech Republic.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
