Pestel, Nico; Sommer, Eric - Institute for the Study of Labor (IZA) - 2013
Shifting taxes from labor income to consumption is regularly suggested as a measure to induce work incentives. We … investigate the effect of increases in the Value Added Tax on labor supply and the income distribution in Germany, which is … compensated by a revenue-neutral reduction in income-related taxes. Based on a dual data base and a microsimulation model of labor …