![]() In this paper, we analyse the fiscal, redistributive and macroeconomic impact of (re-) introducing progressivity in a number of CEE countries with flat tax systems. However since income inequality is notoriously high in these countries, the question of introducing some progressivity in the tax system has come to the fore in both policy and academic circles. ![]() ![]() These arguments have often been cited to support policy recommendations favouring the adoption of flat tax systems in Central and Eastern European (CEE) countries in the 1990s and the 2000s. The advocated benefits of flat tax systems range from their simplicity, higher compliance and lower distortionary effects on growth and employment. Much of the literature on flat tax reforms has highlighted the benefits of introducing flat personal income tax systems in transition economies. ![]()
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