Publication:
The Distributional Impact of Taxes and Social Spending in Croatia

dc.contributor.authorRubil, Ivica
dc.contributor.authorInchauste, Gabriela
dc.date.accessioned2017-10-05T16:34:27Z
dc.date.available2017-10-05T16:34:27Z
dc.date.issued2017-09
dc.description.abstractThis paper describes the impact of fiscal policy on inequality and poverty, and examines recent policy changes and whether there is room for an increased role for fiscal policy in improving the well-being of the poor. Taxes and social spending reduced inequality in Croatia; however, once the impacts of indirect taxes are considered, the system is unable to reduce poverty, especially for families with children and retirees. Beginning in the second decile, households are net payers to the treasury, as the share of taxes paid exceeded the cash benefits received for all but the poorest 10 percent of the population. Microsimulations of recent tax changes find that inequality after taxes and transfers is expected to increase slightly in 2017, as most of the benefits of the reform were concentrated at the top of the distribution. Although the impact of lower value-added taxes on electricity and utility bills is expected to be slightly poverty reducing, this effect is small relative to the relief that is needed. A reduction in the standard value-added tax rate from 25 to 24 percent would result in a small decline in poverty and inequality. However, the impact may be much smaller, depending on how this measure would be financed.en
dc.identifierhttp://documents.worldbank.org/curated/en/605341506024423991/The-distributional-impact-of-taxes-and-social-spending-in-Croatia
dc.identifier.doi10.1596/1813-9450-8203
dc.identifier.urihttps://hdl.handle.net/10986/28448
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8203
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFISCAL POLICY
dc.subjectFISCAL INCIDENCE
dc.subjectSOCIAL SPENDING
dc.subjectINEQUALITY
dc.subjectPOVERTY
dc.subjectTAXATION
dc.titleThe Distributional Impact of Taxes and Social Spending in Croatiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Distributional Impact of Taxes and Social Spending in Croatia
okr.date.disclosure2017-09-21
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/605341506024423991/The-distributional-impact-of-taxes-and-social-spending-in-Croatia
okr.guid605341506024423991
okr.identifier.doi10.1596/1813-9450-8203
okr.identifier.externaldocumentum090224b084fe8ae8_1_0
okr.identifier.internaldocumentum27998739
okr.identifier.reportWPS8203
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/605341506024423991/pdf/WPS8203.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryCroatia
okr.statistics.combined2143
okr.statistics.dr605341506024423991
okr.statistics.drstats1731
okr.topicPublic Sector Development::Public Sector Economics
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicPoverty Reduction::Inequality
okr.unitPoverty and Equity Global Practice Group
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relation.isAuthorOfPublication.latestForDiscoveryfc26cf5b-c052-5fbd-8fd6-9e8eae98d918
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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