Fuest, Clemens; Peichl, Andreas; Schaefer, Thilo - Institute for the Study of Labor (IZA) - 2007
The success of the flat rate tax in Eastern Europe suggests that this concept could also be a model for the welfare … allowance yields positive static welfare effects amounting to approximately 1.8 per cent of income tax revenue but increases … problematic distributional impact, flat tax reforms are unlikely to spill over to the welfare states of Western Europe. …