Work detail

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

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