1,721,213 research outputs found
The Eurosystem Household Finance and Consumption Survey: A New Underlying Database for EUROMOD
No full textAbstract: We explore the prospects for using the Eurosystem Household Finance and Consumption Survey (HFCS) dataset as an underlying micro-database for the EU tax-benefit model, EUROMOD. This will allow expanding the policy domains currently covered in EUROMOD with dimensions like wealth taxation, incentives for wealth accumulation and asset tests determining benefit eligibility. As the HFCS only contains gross income amounts which are not suitable for distributive analysis, the purpose of this paper is to derive net incomes by simulating the gross-to-net transition with EUROMOD taking into account all important details of the social security and personal income tax system. In order to identify the issues and illustrate their importance a trial database for Belgium and Italy is constructed
Redistribution in a joint income-wealth perspective: a cross-country comparison
Full text linkAbstract: Redistribution is usually understood in terms of income, as a resource used to rank individuals as well as determine tax liabilities or benefit entitlements. Yet, it is increasingly argued that more prominence should be given to the joint distribution of income and wealth and interest into the taxation of wealth for redistributive purposes has largely increased. By including income and wealth data from the Eurosystem Household Finance and Consumption Survey into the tax\u2013benefit microsimulation model EUROMOD, we add two novel aspects to the literature. First, we include the analysis of taxes on wealth and wealth transfers. Second, we evaluate redistributive effects of tax\u2013benefit systems against the joint income\u2013wealth distribution instead of income only. We show that expressing living standards in terms of both income and wealth results in considerable reranking of individuals, which in turn leads to a lower redistributive impact of tax\u2013benefit systems than is traditionally considered
Homeownership Investment and Tax Neutrality: A joint assessment of income and property taxes in Europe
Full text linkWestern countries' income tax systems exempt the return from investing in owner-occupied housing. Returns from other investments are instead taxed, thus distorting households' portfolio choices, although it is argued that housing property taxation might act as a counterbalance. Based on data drawn from the Statistics of Income and Living Conditions and the UK Family Resources Survey, and building on tax-benefit model EUROMOD, we provide novel evidence on the interplay of income and property taxation in budgetary, efficiency and equity terms in eight European countries. Results reveal that, even accounting for recurrent housing property taxation, a sizeable 'homeownership bias' i.e. a lighter average and marginal taxation for homeownership investment, is embedded in current tax systems, and displays heterogeneous distributional profiles across different countries. Housing property taxation represents only a partial correction towards neutrality
Homeownership Investment and Tax Neutrality: a Joint Assessment of Income and Property Taxes in Europe
Full text linkWestern countries’ income tax system exempts the return from investing in owneroccupied housing. Returns from other investments are instead taxed, thus distorting households’
portfolio choices, although it is argued that housing property taxation might act as a counterbalance.
Based on data drawn from the Statistics of Income and Living Conditions and the UK Family Resources
Survey, and building on tax benefit model EUROMOD, we provide novel evidence on the interplay of
income and property taxation in budgetary, efficiency and equity terms in eight European countries.
Results reveal that, even accounting for recurrent housing property taxation, a sizeable ‘homeownership bias’ i.e. a lighter average and marginal taxation for homeownership investment, is embedded
in current tax systems, and displays heterogeneous distributional profiles across different countries.
Housing property taxation represents only a partial correction towards neutrality
Investing in subsidized childcare to reduce poverty
No full textExpanding childcare is often considered as a suitable way to enhance employment opportunities for mothers with young children as well as to reduce child poverty. In this study, the authors critically investigate this assertion by simulating a set of scenarios of increasing subsidized childcare slots and mothers’ employment. For a variety of European welfare states, the impact on poverty and on the government’s budget is estimated using the European microsimulation model EUROMOD. The findings suggest that to achieve significant poverty reductions among young children, both additional childcare slots and increased mothers’ employment should be well targeted. The expenditures for additional childcare slots can to a large extent be recovered by the government receipts generated by the additional employment; however, there appears to be a trade-off between the extra revenue that can be generated and the extent of poverty reduction
Enhancing Microsimulation Analysis of Wealth-Related Policies in EUROMOD
No full textAbstract: While microsimulation techniques have been widely used for the analysis of the distribution of income, this has not been the case for the distribution of wealth. A major reason for this has been the lack of appropriate input data. In Europe this has recently changed among others by the launch of the Eurosystem Household Finance and Consumption Survey (HFCS). In this paper we explain how microsimulation analysis of wealth-related taxes and policies is enhanced by using the HFCS as input data for EUROMOD, the EU-wide tax-benefit microsimulation model. Pilot databases for Belgium and Italy were explored in Kuypers et al. (2016). This paper builds further on that work by extending the coverage to 17 countries and introducing the simulation of new wealth-related policies in EUROMOD. We explain the processes used to build the input data and to code the wealthrelated policies in EUROMOD and highlight some important advantages and drawbacks. Finally, we put forward some research questions which may be addressed by using this enhanced model
Two sides of the same coin? An investigation into the joint distribution of income and wealth and its applications to the analysis of poverty, inequality and redistribution
No full textA consumer revolution under strain : consumption, wealth and status in eighteenth-century Aalst (Southern Netherlands)
No full textDe smalle weg naar het zuiden: over 25 jaar Universitaire Stichting voor Ontwikkelingssamenwerking
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