Australia: Is it time for tax reform?
| Authors | |
|---|---|
| Year of publication | 2017 |
| Type | Article in Proceedings |
| Conference | Hradec Economic Days 2017 |
| MU Faculty or unit | |
| Citation | |
| Web | http://fim2.uhk.cz/hed/images/KOMPLET_en_17.pdf |
| Field | Economy |
| Keywords | Australia; tax reduction; DSGE model; productive sector |
| Description | This paper investigates the tax reduction effects of the productive sector in Australian economy using a new Keynesian dynamic stochastic general equilibrium model for a small closed economy. The goal is to decide whether currently discussed need of tax reform in Australia is relevant and if the proposed solution can improve the situation. The effects on economy are examined using impulse response functions of shocks in the stochastic components of the taxes on labour and capital income. According to our results we suggest to implement a reform of reducing current direct taxes in favour of indirect taxes. |
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