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Tax and Welfare Reforms in the Czech Republic - Structural Implications and Challenges

Tax and Welfare Reforms in the Czech Republic - Structural Implications and Challenges by Thomas Dalsgaard
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The paper provides an analysis and discussion of key structural implications of the 2007 and 2008 welfare and tax reforms in the Czech Republic. Based on a detailed micro-study of marginal and average effective tax rates for individuals at various points along the earnings curve, it concludes that while incentives to save and invest have improved, work incentives are being severely hampered by high marginal effective tax rates for low- and middle income individuals. The reforms also fail to address the most pressing fiscal concern: to put government finances on a sustainable path.
International Monetary Fund; March 2008
52 pages; ISBN 9781451990324
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Title: Tax and Welfare Reforms in the Czech Republic - Structural Implications and Challenges
Author: Thomas Dalsgaard