IDEAS home Printed from https://ideas.repec.org/a/bpj/pewipo/v19y2018i4p313-330n2.html

Sekt oder Selters? – Ökonomische Folgen der Reformzurückhaltung bei der Beendigung des Solidaritätszuschlags

Author

Listed:
  • Strohner Ludwig

    (Forschungsbereich Öffentliche Finanzen, EcoAustria – Institut für Wirtschaftsforschung, Am Heumarkt 10, 1030 Wien, Austria)

  • Berger Johannes

    (Forschungsbereich Arbeitsmarkt und Soziale Sicherung, EcoAustria – Institut für Wirtschaftsforschung, Am Heumarkt 10, 1030 Wien, Austria)

  • Thomas Tobias

    (EcoAustria – Institut für Wirtschaftsforschung, Am Heumarkt 10, 1030 Wien, Austria)

Abstract

While the German Council of Economic Experts recommends the complete abolition of the solidarity surcharge after the expiry of Solidarity Pact II, the current plan of the German government merely provides for a partial exemption from the income tax. Simulations of the two reform scenarios with the general dynamic equilibrium model PuMA show that reform reluctance would result in significant prosperity losses. In comparison, already in the short-term 0.2 percent less GDP would be realized (0.3 percent in the long-term). This is associated with 35,000 persons (long-term 40,000) lower employment. In addition, net household income would be lower. The degree of self-financing of the reforms would amount to more than 40 percent in the short-term (50 percent in the long-term) in both scenarios. This and the current surpluses show that a complete abolition of the solidarity surcharge would be possible without jeopardizing the sustainability of public finances.

Suggested Citation

  • Strohner Ludwig & Berger Johannes & Thomas Tobias, 2018. "Sekt oder Selters? – Ökonomische Folgen der Reformzurückhaltung bei der Beendigung des Solidaritätszuschlags," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 19(4), pages 313-330, December.
    • Handle: RePEc:bpj:pewipo:v:19:y:2018:i:4:p:313-330:n:2
    DOI: 10.1515/pwp-2018-0016
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/pwp-2018-0016
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/pwp-2018-0016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Coppik, Jürgen, 2024. "Economic fundamentals of IP interconnection and data traffic between over-the-top-providers and traditional telecommunications network operators," DICE Ordnungspolitische Perspektiven 117, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:pewipo:v:19:y:2018:i:4:p:313-330:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.