Simulations of planned government reforms with EUROMOD/SORESI


Katarina Hollan


Michael Fuchs, Katarina Hollan


Following published reform details for tax-benefit policies for the period 2017-2022 by the new Austrian Federal Government, we analysed the distributional impact of two envisaged/planned tax-benefit reforms: the introduction of the 'family bonus' tax credit and the changes in relation to unemployment assistance and minimum income benefit. With our expertise in tax-/benefit microsimulation modelling, using the Austrian EUROMOD module and the SORESI model, we sought to provide an in-depth analysis of the budgetary and distributional consequences of the reforms. We looked at the effect of the policy changes both at the household (incl. at-risk-of poverty rates) and individual level. The project was financed by the Vienna Chamber of Labour.


The comparison of the distributive and fiscal outcomes of the family tax credit 'Familienbonus Plus' introduced in 2019 and of the hypothetical basic security for children combines the findings of two research projects (the other funded by the NGO Volkshilfe Österreich). The family tax credit mainly relieves working parents belonging to the middle class whereas the basic security for children would benefit mainly income-poor and disadvantaged families. The comparison was presented by Michael Fuchs and Katarina Hollan at the 3rd Research Conference of ESPAnet Austria on 26 April 2019 at the University of Innsbruck and published as European Centre Policy Brief 2019/3.