ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book argues for the enlargement of European Union-wide tax-benefit model to cover all Member States of the EU. It demonstrates the barriers of use, including the ease of use, data access difficulties, and the policy scope limitations. The book discusses the potential and feasible extentions of the model, including indirect taxes, estimates of non-cash benefits, or a framework for modelling labour supply behaviour. It presents how taxes and benefits alter income inequality, poverty, including the aggregate impact of all policies, but also the effect by instrument. The book focuses on the problem of child poverty in Poland, by comparing alternative tax-benefit strategies. It explores whether replacing in-work "benefits" linked to family dependants with tax-free labour income can increase the overall labour market participation. The book explores future priorities for tax-benefit modelling.
