Effective Taxation of Top Incomes in Germany, 1992-2002
AbstractWe analyze the taxation of top personal incomes in Germany on the basis of an integrated data file of individual tax returns and a general household survey for the years 1992 - 2002. The unique feature of this integrated data set is that it includes all taxpayers in the top percentile of the gross income distribution. We show that despite substantial tax base erosion and significant reductions of top statutory marginal tax rates, German income taxation has remained effectively progressive. The distribution of the tax burden is highly concentrated, and the effective average income tax rate of the German economic elite – the top 0.001 quantile of the gross income distribution – is about 34 percent, which is well below the legislated tax rate.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2233.
Date of creation: 2008
Date of revision:
personal income tax; taxing the rich; effective progressivity;
Other versions of this item:
- Stefan Bach & Giacomo Corneo & Viktor Steiner, 2008. "Effective Taxation of Top Incomes in Germany, 1992 - 2002," Discussion Papers of DIW Berlin 767, DIW Berlin, German Institute for Economic Research.
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
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"Top Incomes and Top Taxes in Germany,"
CESifo Working Paper Series
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"Top Incomes in the Long Run of History,"
NBER Working Papers
15408, National Bureau of Economic Research, Inc.
- Dwenger, Nadja & Steiner, Viktor, 2009.
"Financial leverage and corporate taxation: Evidence from German corporate tax return data,"
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- Nadja Dwenger & Viktor Steiner, 2014. "Financial leverage and corporate taxation: evidence from German corporate tax return data," International Tax and Public Finance, Springer, vol. 21(1), pages 1-28, February.
- Nadja Dwenger & Viktor Steiner, 2009. "Financial Leverage and Corporate Taxation: Evidence from German Corporate Tax Return Data," Discussion Papers of DIW Berlin 855, DIW Berlin, German Institute for Economic Research.
- Michal Myck & Richard Ochmann & Salmai Qari, 2008.
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SOEPpapers on Multidisciplinary Panel Data Research
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- Martin Jacob & Rainer Niemann & Martin Weiss, 2008.
"The Rich Demystified - A Reply to Bach, Corneo, and Steiner (2008),"
CESifo Working Paper Series
2478, CESifo Group Munich.
- Jacob, Martin & Niemann, Rainer & Weiss, Martin, 2008. "The rich demystified: A reply to Bach, Corneo, and Steiner (2008)," arqus Discussion Papers in Quantitative Tax Research 58, arqus - Arbeitskreis Quantitative Steuerlehre.
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