How to compensate families for the VAT unification: to reduce tax in employed people or to increase allowances in the poorest ones?

Abstract

Social and tax policies in the Czech Republic are interconnected in a number of dimensions including the redistribution and thus, they considerably participate in the measure of the redistribution. In the article presented here, we analyze particular interactions between social and tax policies with a regard to changes in the measure of the redistribution and with putting emphasize on planned changes in the value added tax (VAT) and policies aimed at supporting families and children.

Keywords

• social policy
• tax policy
• value added tax
• families with children