Figures and data in A tax-benefit model for Austria (AUTAX): Work incentives and distributional effects of the 2016 tax reform

Cite this article as: M. Christl, M. Köppl-Turyna, D. Kucsera; 2017; A tax-benefit model for Austria (AUTAX): Work incentives and distributional effects of the 2016 tax reform; International Journal of Microsimulation; 10(2); 144-176. doi: 10.34196/ijm.00160

7 figures and 23 tables

Figures

Figure 1

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Distributions of the realized and the simulated values for net wage income.

Figure 2

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Annual net income increase of the 2016 tax reform.

Figure 3

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Distribution of net wage income before and after the 2016 tax reform.

Figure 4

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2016 tax reform – Incentives on the extensive margin (AETR) and intensive margin (METR).

Figure 5

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Policy options – Incentives for low wage incomes on the extensive (AETR) and intensive margin (METR).

Figure 6

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Policy options – Incentives for middle wage incomes on the extensive (AETR) and intensive margin (METR).

Figure A1

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Tables

Table 1

The tax system in 2015.

(a) Recurrent wage income tax rates.
Tax base(EUR)	Tax rate
0 – 11,000	0%
11,000 – 25,000	36.5%
25,000 – 60,000	42.21%
> 60,000	50%
(b) Tax rates for special payments.
Tax base(EUR)	Tax rate
0 – 620	0%
620 – 25,000	6%
25,000 – 50,000	27%
50,000 – 83,333	35.75%
> 83,333	50%

Source: Schratzenstaller (2009).

Table 2

Tax rates for recurrent wage in 2016.

Tax base (EUR)	Tax rate
0 – 11,000	0%
11,000 – 18,000	0%
18,000 – 31,000	35%
31,000 – 60,000	42%
60,000 – 90,000	48%
90,000 – 1,000,000	50%
> 1,000,000	55%

Source: Austrian Federal Ministry of Finance (2015).

Table 3

Lump-sum allowances and tax credits.

	Old system	New system
	(EUR)
Tax credits:
employee tax credit	54	-
deductible amount for travel expenses	291	400
pensioner tax credit	400	400
Lump-sum allowances:
advertising expense lump-sum	132	132
extra charge lump-sum	60	60

Source: Austrian Federal Ministry of Finance (2015).

Table 4

Summary statistics (annual data).

Variable	Mean	Std. Dev.	Obs.
	(EUR)
Gross wage	26,512.47	28,273.13	65,535
Special payments (paragraph 67 (1–2) of the ESt)^a	3,437–61	3,284.93	65,535
Social security and other contributions	3,411.15	3,415.68	65,535
Other wage income (paragraph 67 (3–8) of the ESt)^b	375.38	4,722.25	65,535
Tax base	18,982.57	21,216.19	65,535
Total wage tax	4,036.57	9034.34	65,535

a

The income tax law (“Einkommensteuergesetz 1988”, short ESt).
b

E.g. severance indemnities, dismissal wages etc.

Table 5

The simulation model.

Gross wage income
Recurrent wage income	special payments (13. and 14. payment)
+ additional wage (except 13. and 14.)
- social security contributions on recurrent income (see Table A.1)
- lump-sum commuter allowance	- social security contributions on special payments
- other job-related allowances
- non-job-related allowances
= taxable recurrent income (tax base)	= taxable special payments (tax base)
- income tax (see Table 2)	- income tax
+ tax credits	on special payments (see Table 1b)
= net wage income (recurrent wage income)	= net wage income (special payments)

Table 6

Comparison of annual gross wage incomes: wage tax statistics 2014 and EU-SILC 2015.

Percentile	Wage tax	EU-SILC	Difference
(EUR)
10	4,463	2,860	−35.9%
20	10,743	8,061	−25.0%
30	16,943	14,938	−11.8%
40	22,420	20,774	−7.3%
50	27,714	26,612	−4.0%
60	32,704	31,903	−2.4%
70	38,367	38,265	−0.3%
80	46,483	45,809	−1.4%
90	61,317	59,943	−2.2%
mean	32,208	30,858	−4.2%

Source: Statistik Austria (2016)

Table 7

Monthly ceilings for social security contributions, 2016.

	Old system	New system
	(EUR)
Social security income cap	4,750	4,860
Social security income threshold	416	416

Table 8

Summary statistics – simulated values (annual).

Variable	Mean	Std. Dev.	N
	(EUR)
Wage tax	4,036.6	9,034.3	65,535
Wag tax (sim)	4,025.2	9,233.0	65,535
Net wage income	19,064.8	17,442.6	65,535
Net wage income (sim)	18,928.1	17,249.5	65,535

Table 9

Correlation realized values and simulated values.

	Wage tax	Net income
Apprentices	0.8508	0.9969
Blue-collar workers	0.9742	0.9979
White-collar workers	0.9931	0.9976
Civil servants	0.9905	0.9961
Public-contract staff	0.9853	0.9956
Civil-servant pensioners	0.9918	0.9972
Pensioners	0.9897	0.9971
Individuals with care allowance	1.0000	1.0000
Other individuals	0.9873	0.9975
Total	0.9922	0.9977

Table 10

Inequality measures.

Inequality measure	Net income	Simulated net income
Gini coefficient	0.40911	0.40706
Theil index (GE(a), a = 1)	0.31261	0.31107
Atkinson inequality measures (eps = 1)	0.35335	0.35734

Table 11

Changes in tax and social security revenues in 2016.

	Old system	New system
	(MEUR)
Total wage tax revenues	27,644	23,451
Net tax revenues	−4,193
Social security contributions	23,912	24,039
Net social security contributions	127

Table 12

Average annual net income by social groups.

	Old system	New system (EUR)	Difference
Women	14,504	14,920	416	(2.87%)
Men	24,107	24,942	836	(3–47%)
Pensioners	16,346	16,835	490	(2.99%)
Employees	20,673	21,362	689	(3.33%)
Female employees	16,511	17,021	510	(3.09%)
Male employees	24,363	25,211	848	(3.48%)
Total	19,179	19,799	620	(3.23%)

Table 13

Average annual net income by social status.

	Old system	New system (EUR)	Difference
Apprentices	7,255	7,627	372	(5.12%)
Blue-collar workers	14,616	15,075	459	(3.14%)
White-collar workers	25,112	25,940	828	(3.30%)
Civil servant	35,732	37,124	1,393	(3.90%)
Public contract staff	23,444	24,266	823	(3.51%)
Civil servant pensioner	29,850	31,058	1,208	(4.05%)
Pensioner	15,285	15,709	424	(2.77%)
Other individuals	8,927	9,145	218	(2.45%)
Total	19,179	19,799	620	(3.23%)

Table 14

Average annual net income by age.

	Old system	New system (EUR)	Difference
16 to 25 years	10,054	10,351	297	(2.96%)
26 to 35 years	18,260	18,884	624	(3.42%)
36 to 45 years	22,306	23,056	749	(3.36%)
46 to 55 years	25,133	25,972	838	(3.34%)
56 to 65 years	22,313	23,005	692	(3.10%)
66+ years	16,682	17,197	515	(3.09%)
Total	19,179	19,799	620	(3.23%)

Table 15

Inequality measures for 2016.

Inequality measures	Old system	New system
Gini coefficient	0.40606	0.41005
Theil index (GE(a), a = 1)	0.30688	0.31050
Atkinson inequality measures (ε = 1)	0.45917	0.46408

Table 16

Annual net wage income by deciles.

	Old system	New system (EUR)	Difference
1st decile	735	735	0	(0.00%)
2nd decile	3,905	3,912	7	(0.18%)
3rd decile	8,704	8,730	26	(0.30%)
4th decile	12,684	12,710	26	(0.20%)
5th decile	16,081	16,468	387	(2.40%)
6th decile	19,177	19,942	765	(3.99%)
7th decile	22,303	23,185	882	(3.95%)
8th decile	25,841	26,902	1,061	(4.11%)
9th decile	30,954	32,337	1,383	(4.47%)
10th decile	51,400	53,066	1,667	(3.24%)

Table 17

Theil decomposition by tax status (taxpayer or not).

	Old system	New system
Total	0.3069	0.3105
Within	0.1398	0.1377
Between	0.1671	0.1728

Table 18

Theil decomposition by social status, working time, age groups and gender.

(a) by social status			(b) by working time
	Old system	New system	Old system	New system
Total	0.3069	0.3105	0.3069	0.3105
Within	0.2521	0.2551	0.2526	0.2548
Between	0.0547	0.0554	0.0543	0.0557
(c) by age groups			(d) by gender
	Old system	New system	Old system	New system
Total	0.3069	0.3105	0.3069	0.3105
Within	0.2718	0.2752	0.2872	0.2903
Between	0.0351	0.0353	0.0197	0.0202

Notes: Social status categories listed in Table 13. Working time: part time vs. full time. Age groups listed in Table 14.

Table 19

Costs of the policy proposals.

	Old system	New system	Proposals
			SSC1	SSC2
	(MEUR)
Wage tax revenue	23,451		24,006	23,830
SSC revenue	24,039		22,389	22,883
Additional wage tax revenue			556	379
Loss in SSC			−1,649	−1,155
Total costs		−370	−1,094	−776

Table 20

Impact of policy options on wage income deciles.

Old system		New system 400 EUR NIT		Proposals
Old system		New system 400 EUR NIT		SSC1		SSC2
(EUR)
1st decile	780	+16	(2.07%)	+7	(0.92%)	+8	(0.97%)
2nd decile	3,980	+196	(4.92%)	+51	(1.28%)	+52	(1.32%)
3rd dec1le	8,771	+243	(2.78%)	+122	(1.40%)	+126	(1.43%)
4th dec1le	12,715	+164	(1.29%)	+162	(1.27%)	+167	(1.31%)
5th dec1le	16,081	+391	(2.43%)	+529	(3.29%)	+535	(3.33%)
6th dec1le	19,177	+765	(3.99%)	+925	(4.82%)	+932	(4.86%)
7th dec1le	22,303	+882	(3.95%)	+1,066	(4.78%)	+1,075	(4.82%)
8th dec1le	25,841	+1,061	(4.11%)	+1,287	(4.98%)	+1,297	(5.02%)
9th dec1le	30,954	+1,383	(4.47%)	+1,647	(5.32%)	+1,590	(5.14%)
10th dec1le	51,400	+1,668	(3.24%)	+2,075	(4.04%)	+1,672	(3.25%)

Table 21

Inequalitymeasures and Theil decomposition of policy options.

	New system 110 EUR NIT	New System 400 EUR NIT	Proposals
	New system 110 EUR NIT	New System 400 EUR NIT	SSC1	SSC2
Gini coefficient	0.405	0.406	0.408	0.407
Theil Total	0.305	0.306	0.308	0.307
Theil Within	0.140	0.137	0.137	0.136
Theil Between	0.166	0.168	0.171	0.171

Table A1

Social security contributions.

	HI	PI	UI	add. taxes	Total
2015
other individuals	3.82%	10.25%	3.00%	1.00%	18.07%
apprentices	3.95%	10.25%	3.00%	-	17.20%
blue-collar workers	3.95%	10.25%	3.00%	1.00%	18.20%
white-collar workers	3.82%	10.25%	3.00%	1.00%	18.07%
civil servant	4.10%	11.80%	3.00%	1.00%	19.90%
public contract staff	3.82%	10.25%	3.00%	1.00%	18.07%
civil servant pensioner	5.10%	10.25%	-	-	15.35%
pensioner	4.90%	10.25%	-	-	15.15%
individual with care allowance	4.90%	10.25%	-	-	15.15%
2016
other individuals	3.87%	10.25%	3.00%	1.00%	18.12%
apprentices	1.67%	10.25%	1.20%	-	13.12%
blue-collar workers	3.87%	10.25%	3.00%	1.00%	18.12%
white-collar workers	3.87%	10.25%	3.00%	1.00%	18.12%
civil servant	4.10%	11.75%	3.00%	1.00%	19.85%
public contract saff	3.87%	10.25%	3.00%	1.00%	18.12%
civil servant pensioner	5.10%	10.25%	-	-	15.35%
pensioner	5.10%	10.25%	-	-	15.35%
individual with care allowance	5.10%	10.25%	-	-	15.35%

Table A2

Independent 2-group Mann-Whitney U Test.

W	p-value
2,152,840,096	0.4286

Note: Alternative hypothesis – true location shift is not equal to 0.

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Distributions of the realized and the simulated values for net wage income.

Annual net income increase of the 2016 tax reform.

Distribution of net wage income before and after the 2016 tax reform.

2016 tax reform – Incentives on the extensive margin (AETR) and intensive margin (METR).

Policy options – Incentives for low wage incomes on the extensive (AETR) and intensive margin (METR).

Policy options – Incentives for middle wage incomes on the extensive (AETR) and intensive margin (METR).

Tax rates in different tax reforms.

The tax system in 2015.

Tax rates for recurrent wage in 2016.

Lump-sum allowances and tax credits.

Summary statistics (annual data).

The simulation model.

Comparison of annual gross wage incomes: wage tax statistics 2014 and EU-SILC 2015.

Monthly ceilings for social security contributions, 2016.

Summary statistics – simulated values (annual).

Correlation realized values and simulated values.

Inequality measures.

Changes in tax and social security revenues in 2016.

Average annual net income by social groups.

Average annual net income by social status.

Average annual net income by age.

Inequality measures for 2016.

Annual net wage income by deciles.

Theil decomposition by tax status (taxpayer or not).

Theil decomposition by social status, working time, age groups and gender.

Costs of the policy proposals.

Impact of policy options on wage income deciles.

Inequalitymeasures and Theil decomposition of policy options.

Social security contributions.

Independent 2-group Mann-Whitney U Test.

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