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Budget Balanced Reform, Raising PIT to Cut VAT

Note: This figure shows the results of a budget neutral reform that raises 1% of GDP from PIT rebated through VAT cut. The increase in PIT revenue arises from changes in the marginal tax rates paid by top-decile households to simulate a progressive tax reform.

Panel B: Tax related Beliefs about Self Employed vs Employees

Panel C: Tax related Preferences about Self Employed vs Employees (Control group)