The post-reform income distribution was obtained through a microsimulation carried out by the Ministry of Finance.
Several findings emerge from the study.
The distribution of original incomes is unambiguously more equal under the post-reform regime. The increased amounts of child and housing allowances have a considerable equalizing effect. The decreased progressivity is the most important explanation in the lower end of the distribution, while the decreased tax rate explains more of the difference in the upper end. The reform increased horizontal equity. The first four of these main findings apply when the calculations were redone within each separate household group.