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Germany needs a reform of (capital) income taxation

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  • Doina Radulescu
  • Doina Maria Radulescu

Abstract

Calls for a reform of income taxation in Germany have been increasing. The reform proposals extend from the Kirchhof flat tax idea to the introduction of a dual income tax, which is favoured by the German Council of Economic Advisors and by Hans-Werner Sinn. All agree that a comprehensive tax reform should support economic growth, ensure increased efficiency and fairness and safeguard adequate government revenue. Against this background this article analyses the taxation policy of the SPD/Green Party coalition during the two last legislative periods to determine whether and to what extent the measures that have been introduced since 1998 have met these goals.

Suggested Citation

  • Doina Radulescu & Doina Maria Radulescu, 2005. "Germany needs a reform of (capital) income taxation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(17), pages 16-20, September.
    • Handle: RePEc:ces:ifosdt:v:58:y:2005:i:17:p:16-20
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    References listed on IDEAS

    as
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    2. Robin Boadway, 2004. "The Dual Income Tax System - An Overview," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(3), pages 03-08, October.
    3. Sinn, Hans-Werner, 1997. "Deutschland im Steuerwettbewerb," Munich Reprints in Economics 19833, University of Munich, Department of Economics.
    4. Thiess Buettner & Martin Ruf, 2007. "Tax incentives and the location of FDI: Evidence from a panel of German multinationals," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(2), pages 151-164, April.
    5. Christoph Spengel & Wolfgang Wiegard, 2004. "Dual Income Tax: A Pragmatic Tax Reform Alternative for Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(3), pages 15-22, October.
    6. Christoph Spengel & Wolfgang Wiegard, 2004. "Dual Income Tax: A Pragmatic Tax Reform Alternative for Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(03), pages 15-22, October.
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    8. Clemens Fuest & Bernd Huber, 2001. "Can Corporate-personal Tax Integration Survive in Open Economies?. Lessons from the German Tax Reform," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(4), pages 514-524, August.
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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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