Viewing tax policy through party-colored glasses: What German politicians believe
AbstractThe process of globalization has an important impact on national tax policies. Most of the literature does not focus directly on the political decision making process and assumes that the desired tax policy is responding to objective underlying tradeoffs. Based on an original survey of members of German national parliament (Bundestag) in 2006/7 we document a strong ideological bias among policy makers with respect to the perceived mobility of international tax bases (real capital and paper profits). Ideology via party affiliation influences also directly and indirectly the perceived national autonomy in tax setting and preferences for a EU minimum tax for companies. There seems little consensus as to what the efficiency costs of capital taxation in open economies are, even though our survey falls in a period of extensive debate about and actual adoption of a company tax reform bill in Germany. From a comparative politics perspective our results document the strong role of party discipline in a parliamentary democracy as the actual voting behaviour within a party is much more cohesive than the survey evidence suggests.
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Bibliographic InfoPaper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 0805.
Date of creation: 2008
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Globalization; business taxation; beliefs; member of parliament; profit shifting; party discipline; yardstick competition;
Other versions of this item:
- Friedrich Heinemann & Eckhard Janeba, 2011. "Viewing Tax Policy Through Party‐Colored Glasses: What German Politicians Believe," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 286-311, 08.
- Janeba, Eckhard & Heinemann, Friedrich, 2011. "Viewing tax policy through party-colored glasses: What German politicians believe," MPRA Paper 33096, University Library of Munich, Germany.
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ACC-2008-04-04 (Accounting & Auditing)
- NEP-ALL-2008-04-04 (All new papers)
- NEP-CDM-2008-04-04 (Collective Decision-Making)
- NEP-EEC-2008-04-04 (European Economics)
- NEP-PBE-2008-04-04 (Public Economics)
- NEP-POL-2008-04-04 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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