ABSTRACT
This chapter explores the enlargement of the role for tax-benefit models. One of the great strengths of the first version of European Union (EU)-wide tax-benefit model (EUROMOD) was that, before May 2004, the model covered the entire EU. For each new Member State, EUROMOD has to add data from household surveys or administrative sources. The chapter looks at ways of enlarging the role of tax-benefit models and raising their prominence in policy discussion. It considers how the role of tax-benefit modelling can be enlarged within the EU, and specifically within the Social Inclusion Process. There are substantial sums that form part of national income but which do not enter the disposable income of households. The difference between national income and household income is the result of statistical conventions. But conventionally household income is defined to exclude net accrued capital gains. The mean income of households may be rising, but this may not be experienced by the majority of citizens.
