Distribution impact of the mortgage interest deduction in the
Czech Republic

J 2014

Distribution impact of the mortgage interest deduction in the Czech Republic

JAHODA, Robert a Jana GODAROVÁ

Základní údaje

Originální název

Distribution impact of the mortgage interest deduction in the Czech Republic

Autoři

JAHODA, Robert (203 Česká republika, garant, domácí) a Jana GODAROVÁ (203 Česká republika, domácí)

Vydání

Review of European Studies, 2014, 1918-7173

Další údaje

Jazyk

angličtina

Typ výsledku

Článek v odborném periodiku

Obor

50200 5.2 Economics and Business

Stát vydavatele

Kanada

Utajení

není předmětem státního či obchodního tajemství

Kód RIV

RIV/00216224:14560/14:00073596

Organizační jednotka

Ekonomicko-správní fakulta

DOI

http://dx.doi.org/10.5539/res.v6n2p110

Klíčová slova anglicky

microsimulation; personal income tax; revenue forgone method; EU-SILC; tax expenditure

Příznaky

Mezinárodní význam, Recenzováno

Změněno: 2. 6. 2017 15:42, doc. Ing. Robert Jahoda, Ph.D.

Anotace

V originále

This paper focuses on the mortgage interest deduction for owner-occupied housing in the Czech Republic. The main research question concerns the distribution of personal income tax liability given the rather generous interest deduction for owner-occupied housing loans and changes to it when restrictions are placed on the interest deduction in 2014. We used data for the Czech Republic from the EU-SILC surveys for our analysis. We estimated the value of this tax expenditure at approximately CZK 4.1 billion in 2011, with more than half the amount spent by the lowest two deciles in income distribution. Personal income tax reform is legislated to begin in 2014, one part of which will be a cap on loan interest. This reform will lead to a decrease in the yearly value of the tax expenditure but will be followed by an increase in the PIT rate. Taken together, this will generate greater tax expenditures. Our computations show that the impact will be negative on households in the highest decile, while other groups will feel some benefit.

Návaznosti

GAP403/12/0366, projekt VaV

Název: Identifikace a evaluace regionálně specifických faktorů úspěšnosti reforem v duchu NPM ? země CEE

MUNI/A/0784/2013, interní kód MU

Název: Vybrané aspekty hodnocení efektivnosti a zásluhovosti veřejných politik (Akronym: Aspekty VEPO)

Investor: Masarykova univerzita, Vybrané aspekty hodnocení efektivnosti a zásluhovosti veřejných politik, DO R. 2020_Kategorie A - Specifický výzkum - Studentské výzkumné projekty

Citovat

JAHODA, Robert a Jana GODAROVÁ. Distribution impact of the mortgage interest deduction in the Czech Republic. Review of European Studies. 2014, roč. 6, č. 2, s. 110-119. ISSN 1918-7173. Dostupné z: https://dx.doi.org/10.5539/res.v6n2p110.

@article{1180890,
   author = {Jahoda, Robert and Godarová, Jana},
   article_number = {2},
   doi = {http://dx.doi.org/10.5539/res.v6n2p110},
   keywords = {microsimulation; personal income tax; revenue forgone method; EU-SILC; tax expenditure},
   language = {eng},
   issn = {1918-7173},
   journal = {Review of European Studies},
   title = {Distribution impact of the mortgage interest deduction in the Czech Republic},
   volume = {6},
   year = {2014}
}

TY  - JOUR
ID  - 1180890
AU  - Jahoda, Robert - Godarová, Jana
PY  - 2014
TI  - Distribution impact of the mortgage interest deduction in the Czech Republic
JF  - Review of European Studies
VL  - 6
IS  - 2
SP  - 110-119
EP  - 110-119
SN  - 19187173
KW  - microsimulation
KW  - personal income tax
KW  - revenue forgone method
KW  - EU-SILC
KW  - tax expenditure
N2  - This paper focuses on the mortgage interest deduction for owner-occupied housing in the Czech Republic. The main research question concerns the distribution of personal income tax liability given the rather generous interest deduction for owner-occupied housing loans and changes to it when restrictions are placed on the interest deduction in 2014. We used data for the Czech Republic from the EU-SILC surveys for our analysis. We estimated the value of this tax expenditure at approximately CZK 4.1 billion in 2011, with more than half the amount spent by the lowest two deciles in income distribution. Personal income tax reform is legislated to begin in 2014, one part of which will be a cap on loan interest. This reform will lead to a decrease in the yearly value of the tax expenditure but will be followed by an increase in the PIT rate. Taken together, this will generate greater tax expenditures. Our computations show that the impact will be negative on households in the highest decile, while other groups will feel some benefit.
ER  -

JAHODA, Robert a Jana GODAROVÁ. Distribution impact of the mortgage interest deduction in the Czech Republic. \textit{Review of European Studies}. 2014, roč.~6, č.~2, s.~110-119. ISSN~1918-7173. Dostupné z: https://dx.doi.org/10.5539/res.v6n2p110.

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