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The tax and the mighty: Tax payer concentration lowers local business taxation in German Municipalities

Author

Listed:
  • Ivo Bischoff

    (University of Kassel)

  • Stefan Krabel

    (University of Kassel)

Abstract

We analyze the impact of large firms on business tax rates using data from German mu-nicipalities in Hesse in 1998-2005. Results suggest that business tax rates decrease with tax-payers’ concentration, indicating strong local lobbying power of large firms.

Suggested Citation

  • Ivo Bischoff & Stefan Krabel, 2012. "The tax and the mighty: Tax payer concentration lowers local business taxation in German Municipalities," MAGKS Papers on Economics 201245, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201245
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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