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Cover von: A Revenue-neutral Shift from SSC to VAT: Analysis of the Distributional Impact for 12 EU—OECD Countries
Alastair Thomas, Fidel Picos-Sánchez

A Revenue-neutral Shift from SSC to VAT: Analysis of the Distributional Impact for 12 EU—OECD Countries

Rubrik: Articles
Jahrgang 71 (2015) / Heft 2, S. 278-298 (21)
Publiziert 09.07.2018
DOI 10.1628/001522115X14186532237317
Veröffentlicht auf Englisch.
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Beschreibung
This paper assesses the distributional impact of a revenue-neutral shift from SSC to VAT in 12 EU—OECD countries. Using Household Budget Survey data, we simulate a 5-percentage-point SSC reduction funded by three alternative VAT reforms: an equal relative increase in all VAT rates, an increase in the standard VAT rate, and a shift to a uniform VAT rate. Our results suggest that all three reforms would be regressive in all 12 countries, that tax liabilities increase less for employees than for nonemployees, and that the uniform rate is the best for employees and the worst for nonemployees.