Distribution of average, marginal, and participation tax rates among Czech taxpayers : results from a TAXBEN model

Abstract

We present empirical distributions of the average, marginal and participation tax rates on earnings across the population of Czech taxpayers under the current tax-and-benefit system. We quantify significant differences between the taxation of employees and the self- employed: the average tax rates on wage income and business income are 37.4% and 28.1%, respectively, even though the self-employed tend to have higher earnings.

Keywords

• TAXBEN models
• average tax rates
• marginal tax rates