CHRISTL, MICHAEL
No
Econ. Voice
Article
Científica
3
3
12/05/2026
001762139300001
2-s2.0-105039072092
Policy debates on European welfare states often rely on an incomplete notion of tax fairness that overlooks indirect taxes and in-kind public services. Using a comprehensive fiscal incidence framework, we show that once direct and indirect taxes, cash transfers, and in-kind benefits are jointly considered, the number of net contributor households in the EU declines substantially. While high-income households remain the primary net contributors, many low- and middle-income households are net beneficiaries due to the redistributive role of public services. I conclude that fiscal fairness, rather than tax fairness alone, provides a more appropriate basis for evaluating redistribution, sustainability, and welfare state reform.
tax fairness; fiscal fairness; fiscal incidence; welfare state; redistribution