Distributional impacts of taxes and benefits among Czech households : results from a TAXBEN model. [Podkladová studie ke Studii IDEA 8/2013 : Kdo a kolik odvádí do společné kasy? Zdanění příjmů ze zaměstnání a podnikání v českém systému]
Abstrakt
This paper provides a unique up-to-date analysis of the redistributive effects of the Czech tax and benefit system. We quantify its redistributive impacts on the whole population of heterogeneous Czech households.
Among our key findings is rather weak combined power of the tax and benefit systems in alleviating income inequalities. The tax system is only slightly progressive and the tax and in particular benefit system is heavily targeting households with children rather than households who are poor per se.
Due to the generous non-means tested child-related benefits, even in the top three deciles of income distribution, 13 percent of households collect some benefits, and they collect higher amounts of benefits (per unit) than recipients in all other deciles except the first one.