The Distributional Effects of Value Added Tax

Abstract

The article analyzes the incidence of the value added tax on the current money income of the households. For Romania there are evaluated the effects of changing the VAT rates on the regressivity of tax related to the current income, taking into consideration the relation between the expenditures and the incomes of the population, but also the expenditure structure by income deciles.

Keywords

• tax
• income
• expenditure
• regressive
• decile