Open AccessTax reform proposals: how much do they bring to the public sector budgets?
Author(s) -
Petr Jánský,
Libor Dušek
Publication year - 2012
Publication title -
ekonomická revue
Language(s) - English
Resource type - Journals
eISSN - 1805-9481
pISSN - 1212-3951
DOI - 10.7327/cerei.2012.03.05
Subject(s) - public sector , tax reform , public economics , economics , business , economic policy , economy
Evaluation of the impacts of tax changes on government revenues and expenditures is indispensable for evidencebased
policy making. Czech government discussed several alternative proposals to change the value added tax
(VAT) rates and social security rates during 2010 and 2011. This article estimates the impact of these proposals
on the public sector budget deficits. The main contribution of the article is in quantifying a wide range of response
channels through which the proposed tax changes affect the government revenues and expenditures. The relationship
between the proposed VAT changes and the pension reform is discussed, as is the reallocation of revenue and
expenditures within the public sector