IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v5y1987i1p25-41.html
   My bibliography  Save this article

Local Business Taxes in Britain and Germany: Assessment of Comparative Burdens 1960–1984 by Use of the ‘Costs of Capital’ Methodology

Author

Listed:
  • R J Bennett

    (Department of Geography, London School of Economics and Political Science, Houghton Street, Aldwych, London WC2A 2AE, England)

  • G Krebs

    (Department of Geography, University of Cambridge, Cambridge, England CB2 3EN)

Abstract

This paper contains a review of the local systems of taxation in Britain and Germany as well as the policy debate. The main contribution, however, is to evaluate the burdens of the two fiscal systems on the user costs of capital. Comparisons are made first within each country of the burdens of local business taxes on different assets, sectors, owners, and sources of finance. Comparisons are then made between Britain and Germany over the period 1960–84 by adding progressively higher levels of standardisation: Standardised depreciation rates, inflation rates, distribution of assets and ownership, and capital allowances. From the empirical results it is demonstrated that local taxes decrease the aggregate real rates of return on investment projects by 0.6% (1960 and 1970) and 0.8% (1984) in Germany, and by 0:6% (1960), 0.7% (1970), and 1.1% (1984) in Britain. Thus, although aggregate burdens were comparable in the 1960s and 1970s, recent developments in Britain have resulted in a significant increase in local tax effects. These developments are even more strongly developed for particular assets and industries.

Suggested Citation

  • R J Bennett & G Krebs, 1987. "Local Business Taxes in Britain and Germany: Assessment of Comparative Burdens 1960–1984 by Use of the ‘Costs of Capital’ Methodology," Environment and Planning C, , vol. 5(1), pages 25-41, March.
  • Handle: RePEc:sae:envirc:v:5:y:1987:i:1:p:25-41
    as

    Download full text from publisher

    File URL: http://epc.sagepub.com/content/5/1/25.abstract
    Download Restriction: no

    More about this item

    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:sae:envirc:v:5:y:1987:i:1:p:25-41. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.