The Tax Reform 2004-05 – Measures and Macroeconomic Effects
The tax reform 2004-05 includes tax cuts within income taxation (€ –2.2 billion) and corporate taxation (€ –1.1 billion) as well as increases of several excise taxes (€ +232 million). The changes in the income tax rate scale taking effect in 2005 will increase tax progression and revenue elasticity...| Link(s) zu Dokument(en): | WIFO Publikation |
|---|---|
| Veröffentlicht in: | Austrian Economic Quarterly |
| Hauptverfasser: | , , |
| Format: | article |
| Sprache: | Englisch |
| Veröffentlicht: |
2004
|
| Schlagworte: |
| Zusammenfassung: | The tax reform 2004-05 includes tax cuts within income taxation (€ –2.2 billion) and corporate taxation (€ –1.1 billion) as well as increases of several excise taxes (€ +232 million). The changes in the income tax rate scale taking effect in 2005 will increase tax progression and revenue elasticity vis-à-vis 2003; "cold" progression will be compensated only partially. Simulations done with the WIFO macromodel show a positive effect of the tax reform on GDP and employment. The degree of self-financing through growth-induced additional tax revenues is limited. |
|---|