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Wirkungen einer Abgeltungssteuer auf Investitionsentscheidungen und Kapitalstruktur von Unternehmen
[Effects of a flat rate tax on investment decisions and capital structure of companies]

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  • Kiesewetter, Dirk
  • Lachmund, Andreas

Abstract

Recently, there have been various proposals in Germany to exempt interest income of individuals from progressive income taxation, and to levy a flat source tax, instead. The isolated introduction of a flat tax on interest income would have a significant effect on all investment and financing decisions of investors in individual enterprises, partnerships and corporations. Any equity-financed investment subject to regular taxation would become relatively less attractive compared to interest income subject to the flat tax. This paper analyzes the possible impact of a flat rate tax on business decisions in the context of the German income and corporation tax (sections 2 and 3). Proposals for changes in corporate taxation are developed to avoid the undesired effects of a flat tax on financing decisions (section 4). In particular we show that this is possible without lowering the tax burden on corporate profits to the level of the flat rate tax.

Suggested Citation

  • Kiesewetter, Dirk & Lachmund, Andreas, 2004. "Wirkungen einer Abgeltungssteuer auf Investitionsentscheidungen und Kapitalstruktur von Unternehmen
    [Effects of a flat rate tax on investment decisions and capital structure of companies]    ," MPRA Paper 27177, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27177
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    8. Claudia Wesselbaum-Neugebauer, 2008. "§ 34a EStG - Einstieg in eine rechtsformneutrale Besteuerung oder Option für ein virtuelles Trennungsprinzip?," Schumpeter Discussion Papers sdp08009, Universitätsbibliothek Wuppertal, University Library.
    9. Heger, Diana & Zaby, Alexandra K., 2009. "The propensity to patent with vertically differentiated products: An empirical investigation," Tübinger Diskussionsbeiträge 325, University of Tübingen, School of Business and Economics.
    10. Homburg, Stefan & Houben, Henriette & Maiterth, Ralf, 2008. "Optimale Eigenfinanzierung der Personenunternehmen nach der Unternehmensteuerreform 2008/2009," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 29-47.
    11. Maiterth, Ralf & Sureth, Caren, 2006. "Unternehmensfinanzierung, Unternehmensrechtsform und Besteuerung," arqus Discussion Papers in Quantitative Tax Research 15, arqus - Arbeitskreis Quantitative Steuerlehre.
    12. Schüle, Tobias, 2006. "Creditor coordination with social learning and endogenous timing of credit decisions," Tübinger Diskussionsbeiträge 307, University of Tübingen, School of Business and Economics.
    13. Frontczak, Robert, 2009. "Valuing options in Heston's stochastic volatility model: Another analytical approach," Tübinger Diskussionsbeiträge 326, University of Tübingen, School of Business and Economics.
    14. Frontczak, Robert & Schöbel, Rainer, 2008. "Pricing American options with Mellin transforms," Tübinger Diskussionsbeiträge 319, University of Tübingen, School of Business and Economics.
    15. Dymke, Björn M. & Walter, Andreas, 2006. "Insider trading in Germany: Do corporate insiders exploit inside information?," Tübinger Diskussionsbeiträge 309, University of Tübingen, School of Business and Economics.
    16. Franz W. Wagner, 2006. "Was bedeutet Steuervereinfachung wirklich?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(1), pages 19-33, February.
    17. Rostek, Stefan & Schöbel, Rainer, 2006. "Risk preference based option pricing in a fractional Brownian market," Tübinger Diskussionsbeiträge 299, University of Tübingen, School of Business and Economics.
    18. Rumpf, Dominik & Kiesewetter, Dirk & Dietrich, Maik, 2008. "Investitionsentscheidungen und die Begünstigung nicht entnommener Gewinne nach § 34a EStG," arqus Discussion Papers in Quantitative Tax Research 33, arqus - Arbeitskreis Quantitative Steuerlehre.
    19. Frontczak, Robert & Schöbel, Rainer, 2009. "On modified Mellin transforms, Gauss-Laguerre quadrature, and the valuation of American call options," Tübinger Diskussionsbeiträge 320, University of Tübingen, School of Business and Economics.
    20. Maßbaum, Alexandra & Sureth, Caren, 2008. "The impact of thin capitalization rules on shareholder financing," arqus Discussion Papers in Quantitative Tax Research 39, arqus - Arbeitskreis Quantitative Steuerlehre.
    21. Brandes, Julia & Schüle, Tobias, 2007. "IMF's assistance: Devil's kiss or guardian angel?," Tübinger Diskussionsbeiträge 310, University of Tübingen, School of Business and Economics.
    22. Dirk, Schmidtmann, 2010. "Optimierung der Tarifvergünstigungen für außerordentliche Einkünfte und des negativen Progressionsvorbehalts durch die Schedulenbesteuerung gem. § 34a EStG und §§ 32d, 43 Abs. 5 EStG
      [Enhancing tax      ," MPRA Paper 59201, University Library of Munich, Germany.
    23. Maier, Ramona & Merz, Michael, 2008. "Credibility theory and filter theory in discrete and continuous time," Tübinger Diskussionsbeiträge 318, University of Tübingen, School of Business and Economics.
    24. Rumpf, Dominik, 2013. "Zinsbereinigung bei der Dualen Einkommensteuer," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 32, number urn:isbn:9783161528699.

    More about this item

    Keywords

    Abgeltungssteuer; Unternehmensbesteuerung; Finanzierungsentscheidungen;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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