Two traditional options for reforming Ehegattensplitting, the joint taxation of married couples with full income splitting, are de facto income splitting (Realsplitting) or individual taxation with a transferable personal allowance. However, these proposals do not significantly reduce the...

This study examines how the Swedish earned income tax credit (EITC) introduced in 2007 affected the labor supply of men and women living in two-adult households and the extent to which children in the household affected the outcome. Because the EITC is non-targeted in Sweden, it is difficult to...

This paper investigates the relationship between the implementation of the Family 500+ benefit, changes in female employment and female economic inactivity. The analysis is based on macro data and is focused on the years 2016-2019. To examine the relationship, this study uses decomposition of...

The tax wedge mainly quantifies the extent to which tax on labour income enervates employment and it reflects the total labour costs. It is commonly defined as the ratio between the amount of taxes paid by the worker and the related total labour costs for the employer. As such, the tax wedge...

This paper provides a microeconometric analysis of labour force participation elasticities in Slovakia where we study the elasticity with respect to a unique tax reform whereby the flat tax was backtracked and replaced by a progressive tax. By estimating a probability model for labour force...

Low-skilled immigration has been argued to lower the price of services that are close substitutes for household production, reducing barriers for women to enter the labor market. Therefore, policies that reduce the number of low-skilled immigrants who work predominantly in low-skilled service...

Real estate is taxed at comparatively low rates in Germany, with primarily the affluent benefiting from numerous existing tax privileges. This Weekly Report describes the current state of real estate taxation in Germany and outlines reform proposals that could increase tax revenue, improve the...

Completely eliminating the sharp rise in the tax rate for middle income households in Germany by changing personal income tax rates would mean estimated annual losses in tax revenue of 35 billion euros, or 1.1 percent of GDP. Taxpayers with high incomes would also benefit from this type of...