Tax Credit Policy in the UK and its Lessons for Austria
It is also imperative that a good and tested IT system is put in place before introducing the scheme.
The success of the tax credit policy in Austria will also depend on the contextual factors, such as the interplay with other tax and benefit and labour market policies, wage setting arrangements, etc, and more background research on the effect of these factors will be useful.
A pragmatic approach would be to introduce, in the first instance, a tax credit scheme for specific subgroups, such as lone parent families and working age persons with disabilities.
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