The Effect of Czech 2008 Flat Rate Personal Income Tax on Tax Evasion
| Author: | Mgr. Hrbek Pavel |
|---|---|
| Year: | 2012 - winter |
| Leaders: | PhDr. Jan Zápal Ph.D. |
| Consultants: | |
| Work type: | Doctoral |
| Language: | English |
| Pages: | 88 |
| Awards and prizes: | |
| Link: | |
| Abstract: | The main goal of this thesis is to examine the effect of Czech's 2008 at rate personal income tax reform on consumption, income and tax evasion since there is a belief that personal income tax rates are partially responsible for high levels of tax evasion. We use the gap between household expenditures and reported income as a proxy for tax evasion with the Czech microeconomic data from the 2006-2009 Household Budget Survey. Employing difference-in-difference approach, we find that the Czech at personal income tax reform has significantly decreased the gap between reported household consumption and income for households with only one economically active individual that experienced a reduction in marginal tax rates after the tax reform relative to households experiencing no change and that it takes time for households to adapt to new tax policy. |
| Downloadable: | Rigorous Thesis Hrbek |
