IDEAS home Printed from https://ideas.repec.org/b/ces/ifofob/153.html
   My bibliography  Save this book

Tax cuts in income and corporate taxation

Author

Listed:
  • Maximilian Joseph Blömer
  • Eike Johannes Eser
  • Lilly Fischer
  • Max Lay
  • Andreas Peichl

Abstract

This report analyses a range of reform options for income and corporate taxation. In the area of personal income taxation, changes in the tax rate are analysed with the aim of flattening the 'middle class bulge'. The analysis uses the ifo microsimulation model. In the area of corporate taxation, the revenue effects of a gradual reduction of the overall tax burden to a total of 25% are analysed. The tax reform is implemented in four steps with the aim of spreading the additional annual revenue losses evenly over the years 2026 to 2029.

Suggested Citation

  • Maximilian Joseph Blömer & Eike Johannes Eser & Lilly Fischer & Max Lay & Andreas Peichl, 2025. "Tax cuts in income and corporate taxation," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 153.
    • Handle: RePEc:ces:ifofob:153
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/ifo_Forschungsbericht_153_Steuersenkungen.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xing, Jing, 2012. "Tax structure and growth: How robust is the empirical evidence?," Economics Letters, Elsevier, vol. 117(1), pages 379-382.
    2. Eric Zwick & James Mahon, 2017. "Tax Policy and Heterogeneous Investment Behavior," American Economic Review, American Economic Association, vol. 107(1), pages 217-248, January.
    3. Timo Wollmershäuser & Stefan Ederer & Friederike Fourné & Max Lay & Robert Lehmann & Sebastian Link & Sascha Möhrle & Moritz Schasching & Tiphaine Wibault & Gerome Wolf & Lara Zarges, 2025. "ifo Konjunkturprognose Frühjahr 2025: Deutsche Wirtschaft steckt fest," ifo Schnelldienst Digital, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(4), pages 01-11, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sylvain Catherine & Thomas Chaney & Zongbo Huang & David Sraer & David Thesmar, 2022. "Quantifying Reduced‐Form Evidence on Collateral Constraints," Journal of Finance, American Finance Association, vol. 77(4), pages 2143-2181, August.
    2. Gabriel Chodorow-Reich, 2019. "Geographic Cross-Sectional Fiscal Spending Multipliers: What Have We Learned?," American Economic Journal: Economic Policy, American Economic Association, vol. 11(2), pages 1-34, May.
    3. Bermperoglou, Dimitrios & Deli, Yota & Kalyvitis, Sarantis, 2019. "Investment tax incentives and their big time-to-build fiscal multiplier," Kiel Working Papers 2143, Kiel Institute for the World Economy (IfW Kiel).
    4. Gundert Hannah & Nicolay Katharina & Steinbrenner Daniela & Wickel Sophia, 2024. "The Tax Attractiveness of EU Locations for Corporate Investments: A Stocktaking of Past Developments and Recent Reforms," The Economists' Voice, De Gruyter, vol. 21(1), pages 97-132.
    5. Oguzhan Akgun & David Bartolini & Boris Cournède, 2017. "The capacity of governments to raise taxes," OECD Economics Department Working Papers 1407, OECD Publishing.
    6. Fan, Jianyong & Liu, Yu & Zhang, Qi & Zhao, Peng, 2022. "Does government debt impede firm innovation? Evidence from the rise of LGFVs in China," Journal of Banking & Finance, Elsevier, vol. 138(C).
    7. Martinsson, Gustav & Sajtos, László & Strömberg, Per & Thomann, Christian, 2022. "Carbon Pricing and Firm-Level CO2 Abatement: Evidence from a Quarter of a Century-Long Panel," Misum Working Paper Series 2022-10, Stockholm School of Economics, Mistra Center for Sustainable Markets (Misum).
    8. Stephen J. Terry, 2017. "Alternative Methods for Solving Heterogeneous Firm Models," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(6), pages 1081-1111, September.
    9. Emmanuel Saez & Benjamin Schoefer & David Seim, 2019. "Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden," American Economic Review, American Economic Association, vol. 109(5), pages 1717-1763, May.
    10. Fernando Alexandre & Miguel Chaves & Miguel Portela, 2025. "Investment grants and firms’ productivity: how effective is a grant booster shot?," Small Business Economics, Springer, vol. 64(4), pages 1601-1641, April.
    11. Ligia Alba Melo-Becerra & Héctor Zárate-Solano & Andrés Camilo Gómez-Molina, 2018. "Elasticidad del ingreso corporativo gravable en Colombia," Borradores de Economia 1046, Banco de la Republica de Colombia.
    12. Gechert, Sebastian & Heimberger, Philipp, 2022. "Do corporate tax cuts boost economic growth?," European Economic Review, Elsevier, vol. 147(C).
    13. Abhay Aneja & Nirupama Kulkarni & S. K. Ritadhi, 2021. "Consumption Tax Reform and the Real Economy: Evidence From India's Adoption of a Value‐Added Tax," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 18(3), pages 569-602, September.
    14. Brown, James R. & Martinsson, Gustav & Thomann, Christian, 2021. "Government lending in a crisis," Journal of Corporate Finance, Elsevier, vol. 71(C).
    15. Matthew Smith & Owen Zidar & Eric Zwick, 2020. "Top Wealth in America: New Estimates and Implications for Taxing the Rich," Working Papers 264, Princeton University, Department of Economics, Center for Economic Policy Studies..
    16. International Monetary Fund, 2015. "Finland: Selected Issues," IMF Staff Country Reports 2015/312, International Monetary Fund.
    17. Daniel G. Garrett & Eric Ohrn & Juan Carlos Suárez Serrato, 2020. "Tax Policy and Local Labor Market Behavior," American Economic Review: Insights, American Economic Association, vol. 2(1), pages 83-100, March.
    18. Qianbin Feng & Lexin Zhao & Mingxue Xu, 2023. "Tax Incentives and Maturity Mismatch between Investment and Financing: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(4), pages 1-36, July.
    19. Omar Chafik, 2021. "Impôt sur les sociétés et investissement : quel lien au Maroc ?," Document de travail 2021-4, Bank Al-Maghrib, Département de la Recherche.
    20. Antonio De Vito & Martin Jacob & Dirk Schindler & Guosong Xu, 2025. "How do corporate tax hikes affect investment allocation within multinationals?," Review of Finance, European Finance Association, vol. 29(2), pages 531-565.

    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:ces:ifofob:153. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    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.