Governments play an increasing role in the economic attractiveness of their country and are facing fierce competition to attract companies and skilled workers with growing international mobility. This mobility and this international competition can radically change taxation policies and the organization of public services. It can stimulate better taxation and can also encourage more efficiency and responsibility in public governance.
The Itinera Institute offers interested readers a selection of recent and topical publications and presentations from external sources, with a relevant angle towards the Institute’s key issues for Belgium. The selection is updated regularly and readers have the opportunity to stay on track through RSS for each issue. The selection in no way reflects a policy preference on behalf of the institute and is done for information purposes only.
Suggestions for publications or presentations are welcome and can be sent to info@itinerainstitute.org
Fiscal reform: impact on the consumption of Belgian households
10 November 2008
| The objective of the fiscal reform introduced in 2002 by the government Verhofstadt II was to reduce Belgian households’ taxes in order to stimulate Belgium’s macroeconomic activity. But has this fiscal policy yielded the expected results? This study from Regards Economiques of October 2008 analyses to which extend Belgian households’ consumption was influenced by this reform. |
Effect of tax reduction on job vacancy and unemployment
10 November 2008
| The unemployment rate in Belgium remains relatively high with respect to other European countries. However, some job vacancies are still open. This nota realized by the KUL analyses the possibility of reducing fiscal pressure in order to solve these two issues. It also makes a comparison between Belgium and Denmark by examining the influence some factors like education and transfers may have on the unemployment rate. |
What are the effects of a flat tax?
17 October 2008
| This IZA paper studies the effect of flat tax (referring to a tax with a single rate) reforms in Western Europe on income distribution and work incentives. The simulation of the authors shows that a revenue neutral flat tax with existing basic allowances improves labor supply incentives, but results in higher inequality. It also shows that under some conditions flat taxes may increase both equity and efficiency, but Belgium does not qualify for such statement. |
Is free higher education really democratic?
17 October 2008
| At first sight, free higher education is a good thing. Nonetheless, this article from the Institut Montaigne reminds us that this is contrary to the initial concept of democratisation. Higher education is indeed being financed by taxes from all to benefit largely the better off that are going to college without having any difficulties paying for it. This article makes several suggestions to make individual efforts in financing higher education more efficient and equitable. |
Ageing, demographic uncertainty and its economic impact
22 September 2008
| Because of ageing, the ratio of retirees to workers is going to increase steadily, which is going to increase pressure on the public finances and the economy in general in the decades to come. Nevertheless, because of the uncertainty regarding future demographic developments, the exact extend of the problem is unknown. This impedes on a country’s budgetary strategy: how much less are we aloud to spend? How will economic uncertainty be affected and how will that affect investments? In this paper; the Dutch Plan bureau makes an attempt to estimate the role of uncertainty and discuss possible outcomes. |
