The taxes and social spending in Croatia help reduce inequality, but they don't do enough to decrease poverty, especially for families with children and retirees. Most households end up paying more in taxes than they receive in benefits, except for the poorest 10%. Recent tax changes are expected to slightly increase inequality, with most benefits going to the wealthy. Lowering certain taxes could help a bit with poverty, but more relief is needed. A small decrease in the standard tax rate could slightly reduce poverty and inequality, but the impact might not be significant depending on how it's funded.