The Effects of Cuts in Different Taxes in Austria

To goal of efficient tax policy requires knowledge of macroeconomic effects of different tax reforms. The currently existing estimates are based on varying models and assumptions and are therefore not necessarily consistent. The goal of this study is to estimate the macroeconomic effects of various tax reforms in two models (WIFO-Macromod and ADAGIO) in a consistent manner. Together with a comprehensive literature review of the existing modelling this will enable an objective assessment of expected effects of tax reforms.