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...

Ausführliche Beschreibung

Bibliographische Detailangaben
Link(s) zu Dokument(en):WIFO Publikation
Veröffentlicht in:Austrian Economic Quarterly
Hauptverfasser: Fritz Breuss, Serguei Kaniovski, Margit Schratzenstaller
Format: article
Sprache:Englisch
Veröffentlicht: 2004
Schlagworte:
Beschreibung
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.