This paper analyses the effects of the introduction of the tax relief for families family bonus (Familienbonus) and supplementary
child benefit (Kindermehrbetrag) on household income in Austria, using the WIFO-Micromod microsimulation model that is based
on the EU-SILC data. The average yearly (person-weighted) equivalised household income increases by 320 €, which corresponds
to a relative increase of 1.4 percent. For the families concerned, the reform leads to an increase in the corresponding income
by 733 € or 3.1 percent and to a reduction in the average yearly income tax burden by 1,556 €. The effects are most pronounced
in the medium range of the household income distribution. The total personal income tax revenue decreases by 1.5 billion €
per year.
Keywords:Tax system, family benefits, income distribution, tax revenue, inequality, poverty, microsimulation
Forschungsbereich:Arbeitsmarktökonomie, Einkommen und soziale Sicherheit