Macroeconomic Effects of the Tax Reform Act of 1994

The tax reform act of 1994 raises the purchasing power of private households and lowers the tax burden of enterprises. As a result, gross domestic product will rise in the medium term by 0.5 percent; employment will expand by 11,000 persons; the price level will rise by 0.4 percent; the deficit in the current balance and in the federal budget will rise by 0.6 percent of GDP, respectively.