WELFARE EFFECTS OF DISTORTIONARY FRINGE BENEFITS TAXATION: THE CASE OF EMPLOYER-PROVIDED CARS

• 成果类型: Article
• 署名作者: Gutierrez-i-Puigarnau, Eva; Van Ommeren, Jos N.
• 署名单位: Vrije Universiteit Amsterdam
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2011.00661.x
• 发表日期: 2011
• 页码: 1105-1122
• 关键词: price-discrimination; MARKET; income; elasticities; expenditure; BEHAVIOR; demand; COSTS; urban

摘要

In Europe, many employees receive company cars as fringe benefits induced by taxation. We analyze the welfare effects of company car taxation for the Netherlands by estimating to what extent car expenditure and private car travel change when employees receive a company car. Tax treatment of company cars generates an annual welfare loss, ranging from (sic)600 to (sic)780 per company car, mainly due to a shift toward more expensive cars (from (sic)420 to (sic)600), but also due to increased private travel ((sic)180). For the whole of Europe, the annual welfare loss is about (sic)12 billion.