The Reform of Local Business Taxes in Germany

1987 ◽  
Vol 5 (1) ◽  
pp. 69-74
Author(s):  
W Albers
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Value Added ◽  
International Competition ◽  
Business Taxes ◽  
Local Revenue ◽  
Local Business ◽  
Federal Income Tax ◽  
Business Tax ◽  
Local Value

In this paper the criticisms of the local business tax in Germany and the main reform proposals are outlined. Each of the main proposals is then evaluated in detail. It is concluded that the proposal for a local value-added tax would be detrimental to economic growth, would distort international competition, would be very complicated, and has political impracticalities. The use of a share of the national turnover tax is a preferable solution for part of local revenue and could be allocated to the Land Kreise; a second component could be provided by increasing the local share of the federal income tax. The revitalisation of the present business tax is rejected.

Tourism and urban economic growth: A panel analysis of German cities

2019 ◽  
Vol 26 (3) ◽  
pp. 519-527 ◽  
Author(s):  
Bart Neuts
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Income Tax ◽  
Tax Revenue ◽  
Wealth Creation ◽  
Urban Economic ◽  
Real Gdp ◽  
Local Business ◽  
Business Tax ◽  
German Cities

Even though cities are among the most important tourist destinations, research on tourism as a vehicle for economic growth – most often approached via the tourism-led growth hypothesis (TLGH) – has predominantly been limited to countries. This study explores the validity of the TLGH in an urban context. Panel data were collected for 89 German cities on different indicators of urban economic growth. Pedroni panel cointegration confirmed a long-term equilibrium between tourism, local business tax revenue, income tax revenue and real GDP, indicating that even for cities within a strong, developed economy, tourism contributes to wealth creation. A Panel Granger causality analysis established a one-way Granger causal relationship from tourism to local business tax and income tax and a bidirectional relationship between tourism and real GDP. This causal relationship was stronger for cities with a high to medium tourism intensity.

The Local Business Tax in Germany from the Local Authority Point of View

1987 ◽  
Vol 5 (1) ◽  
pp. 53-57
Author(s):  
G H Milbradt
Keyword(s):  
Value Added ◽  
Point Of View ◽  
Economic Cycle ◽  
Tax Base ◽  
Local Finance ◽  
Local Business ◽  
Wide Range ◽  
Business Tax ◽  
Definition Of ◽  
Local Value

A wide range of criticisms apply to the present local business tax in Germany: It is incompatible with a rational tax system; the definition of the tax base is inequitable; it is unstable through the economic cycle; it is very unequal between areas; it leaves local finance vulnerable to economic declines; it is not perceptible; and it has been subject to reforms at federal level which have taken no account of local needs. However, from the point of view of local government the tax has many advantages: particularly, that it is a large source of revenue, it is fairly autonomous, and it links businesses to local authorities. Reform is nevertheless required, but it is argued that this should be based on revitalisation of the present business tax, primarily by widening its tax base or by the institution of a new tax on the local value-added.

The Case for a Local Net Value-Added Tax for Municipalities

1987 ◽  
Vol 5 (1) ◽  
pp. 75-79 ◽  
Author(s):  
K Schmidt
Keyword(s):  
Value Added ◽  
Advisory Council ◽  
Value Added Tax ◽  
Tax Base ◽  
Local Business ◽  
Benefit Principle ◽  
Ministry Of Finance ◽  
Business Tax ◽  
Net Value Added ◽  
Local Value

In this paper the case made by the Advisory Council of the Federal Ministry of Finance for reform of the local business tax in Germany is outlined. The criteria for a good local tax are described, and the proposals deriving from the Council are presented. The proposed reform is to introduce a local value-added tax of the income type. This tax would be defined on the base of business payroll, profits, interest paid, and rent. It would include businesses, professions, and administrative bodies. The reform is outlined and possible criticisms are assessed. With appropriate definitions of tax base and an enlargement of the group of taxpayers, the value-added tax is argued to be the best approach that is need-oriented, is organised on the benefit principle, has horizontal balance, is economically stable, and is perceptible.

The German Property Tax as a Local Business Tax

1987 ◽  
Vol 5 (1) ◽  
pp. 81-88 ◽  
Author(s):  
R-D Postlep
Keyword(s):  
Economic Growth ◽  
Local Government ◽  
Business Cycle ◽  
Property Tax ◽  
Local Property ◽  
Financial Resources ◽  
Spatial Allocation ◽  
Local Business ◽  
Business Tax

In this paper the property tax (Grundsteuer B) in Germany is evaluated as a local business tax. The tax is discussed from the perspective of its impact on economic growth, business cycle behaviour, and the spatial allocation of local government financial resources. It is concluded that, taken together, the impacts of the local property tax do not suggest that the tax could not be used to a greater extent, particularly when compared with the present local business tax on profits and assets.

scholarly journals PENGARUH PERTUMBUHAN EKONOMI TERHADAP PENERIMAAN PAJAK PENGHASILAN DAN PAJAK PERTAMBAHAN NILAI

2007 ◽  
Vol 7 (1) ◽  
pp. 83
Author(s):  
Herman ,
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Income Tax ◽  
Government Expenditure ◽  
Value Added ◽  
Value Added Tax ◽  
Tax Collection ◽  
Economy Growth ◽  
Test Result ◽  
Is Value

<p class="Style1">The purpose of this research is to find out the effect of economy growth toward tax collection, especially income tax andiralue added tax. The data covered from 1985 until 2005. Some variables included in this researdi such as: consumption, investment, government expenditure and import, and dependent variable is value added tax and income tax collection. The analyzing tools which used are nonnallytest, analyzing of variance, and goodness of fitand t-test. Result of analysis finds that the economy growth has significant effect to the income tax collection and value added tax collection.</p><p class="Style1">Keywords: Economic Growth, Gross Domestic Product, Income Tax, and Value Added Tax</p>

Does the Federal Income Tax Law Favor Entrepreneurs?

2020 ◽  
Vol 73 (4) ◽  
pp. 1219-1232
Author(s):  
Eric Toder
Keyword(s):  
Economic Growth ◽  
Growth Phase ◽  
Income Tax ◽  
Tax Law ◽  
Effective Tax Rate ◽  
Tax System ◽  
Tax Rate ◽  
New Business ◽  
Federal Income Tax ◽  
Income Tax Law

This paper estimates the effective tax rate on entrepreneurial income, defined as the return to an individual who starts a successful new business and then sells their interest once it becomes an established enterprise. The rate depends on both the tax imposed on the appreciation of the firm’s value during its growth phase and on the effects of the tax system on the value of equity in ongoing business enterprises. Under reasonable assumptions, this rate is lower than the rate the entrepreneur would pay on ordinary income. Preferential taxation of entrepreneurial income has consequences for both economic growth and income distribution.

scholarly journals The Effects of Fiscal and Tax Incentives on Regional Innovation Capability: Text Extraction Based on Python

Mathematics ◽  
2020 ◽  
Vol 8 (7) ◽  
pp. 1193 ◽  
Author(s):  
Yawei Qi ◽  
Wenxiang Peng ◽  
Neal N. Xiong
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Value Added ◽  
Corporate Income Tax ◽  
Tax Burden ◽  
Fiscal Policies ◽  
Innovation Capability ◽  
Regional Innovation ◽  
Business Tax ◽  
Macro Tax Burden

The regulation of fiscal and tax policies is an imperative prerequisite for improving the regional innovation capability. In view of this, an attempt was made to select 31 provinces and cities in China as the research object from 2009 to 2018, to extract the fiscal and tax policy text encouraging innovation of the Chinese provinces and cities based on Python, and analyze their impact on regional innovation capability from both a text data and numerical data perspective. It is noteworthy that most of the provincial fiscal policies just follow the national fiscal policies. Each province does not formulate fiscal and tax policy according to its own unique characteristics. Fiscal policies and regional innovation capability exhibit significant spatial heterogeneity. Based on the results of the dynamic panel data model, it is seen that the R&D input and industrial structure are the main sources of improving innovation capability. The fiscal expenditure for science and technology, fiscal and tax policy text, macro tax burden, business tax (BT), and value-added tax (VAT) have a significant boosting effect on the regional innovation capability. However, the corporate income tax hinders the regional innovation capability. Finally, through the robustness test of invention patents, it is found that the fiscal and tax policy text, macro tax burden, and business tax still have a positive effect on invention patents, but the role of value-added tax has changed from promotion to obstruction, and the corporate income tax has become a significant obstacle on invention patents. This shows that China should build a tax system that promotes fair competition, reduce the tax burden of enterprises, encourage enterprises to conduct independent R&D, and guide enterprises in the evolution from the low-tech to high-tech innovation by improving the tax structure and fiscal technology expenditures.

Is the Local Business Tax a User Tax? An Empirical Investigation for Germany / Ist die Gewerbesteuer eine Äquivalenzsteuer? Eine empirische Analyse für Deutschland

2001 ◽  
Vol 221 (1) ◽  
Author(s):  
Clemens Fuest ◽  
Regina Riphahn
Keyword(s):  
Local Governments ◽  
Fiscal Federalism ◽  
Public Expenditures ◽  
Tax Rate ◽  
Business Taxes ◽  
Positive Effects ◽  
Local Business ◽  
Financial Pressure ◽  
Business Tax ◽  
Congestion Effects

SummaryThe theory of fiscal federalism argues that local governments should only tax mobile tax bases for the purpose of charging user taxes which correct for congestion effects. Empirically, we observe that local governments do levy taxes on mobile bases. In Germany, this is the local business tax (Gewerbesteuer). Since such taxes are efficient only if they are raised to cover congestion effects, the justification for these taxes usually put forward is that they serve as user taxes. This paper tests empirically whether that justification holds for the case of German local business taxes. Our findings do not support the user tax argument. Instead, our results suggest that local governments use the local business tax as a source of revenue for general public expenditures. Our empirical analysis finds statistically significant positive effects of changes in expenditures for social assistance and interest payments on subsequent tax rate changes. Our results are thus consistent with the view prevailing in the literature according to which local business tax rates are set in response to general financial pressure in local government budgets.

scholarly journals Tax Revenue and Nigeria Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Emmanuel Onoja Eneche ◽  
Ibrahim Ademu Stephen
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Income Tax ◽  
Computer Software ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Goods And Services ◽  
Short Run

This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.

A Universal EITC: Making Work Pay in the Age of Automation

2020 ◽  
Vol 73 (4) ◽  
pp. 1187-1218
Author(s):  
Leonard E. Burman
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Income Tax ◽  
Value Added ◽  
Tax Burden ◽  
Tax Credit ◽  
Value Added Tax ◽  
Earned Income ◽  
Working Families ◽  
Child Tax Credit

The universal earned income tax credit is a worker subsidy designed to offset wage stagnation. The base proposal would replace existing subsidies for working families with a refundable 100 percent tax credit on individual wages up to $10,000 and a larger, refundable child tax credit. The maximum credit grows with gross domestic product, guaranteeing that low-wage workers benefit from economic growth. The credits are offset by a broad-based value-added tax or income surtax. The proposals are progressive: After-tax income for the bottom quintile would increase by about 25 percent. The tax burden on the top 1 percent would increase by 7-14 percent of income, depending on financing.

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