Economics Research International

Research Article

What Are the Economic and Labour Market Effects of an Income Tax Reduction Targeted at Older Workers?

Table 4

Simulated impact of a permanent 10% to 40% tax reduction for workers aged 60+ (percentage point difference relative to the benchmark scenario).
Labour supply per capita National savings Capital stock per capita Real GDP per capita
20302050203020502030205020302050
10%0.180.30−0.14−0.25−0.32−0.470.050.10
20%0.360.57−0.39−0.48−0.55−0.930.120.19
30%0.540.85−0.62−0.75−0.81−1.410.190.27
40%0.711.11−0.86−1.02−1.09−1.910.240.34