Abstrakt
This paper provides an up-to-date analysis of the redistributive effects of the Czech tax and benefit system at the household level. We provide several measures of the extent in which the tax and benefit system redistributes from the rich to the poor and from the childless households to the households with children.
We find a rather weak combined power of the tax and benefit systems in alleviating income inequalities. The system redistributes primarily towards households with children.
While households with children earn 55 per cent of total earnings, they pay 39 per cent of total taxes and receive 68 per cent of total benefits. Even the richest households with children contribute a lower share of total net taxes (8 per cent) than their share in total earnings (10 per cent).
About a quarter of households with children in the upper income deciles collect some benefits while only half of the poorest households without children do.