Does Germany collect revenue from taxing the normal return to capital?

Becker J, Fuest C


Zusammenfassung
A widespread objection to the introduction of consumption tax systems claims that this would lead to high tax revenue losses. This paper investigates the revenue effects of a consumption tax reform in Germany. Our results suggest that the revenue losses would be surprisingly low. We find a maximum revenue loss of 1.6 per cent of annual GDP. In some years, we even find tax revenue gains. This implies that the current tax system collects little revenue from taxing the normal return to capital. Based on these results, we calculate a macroeconomic measure of the effective tax rate on capital income.



Publikationstyp
Aufsatz (Zeitschrift)

Publikationsstatus
Veröffentlicht

Jahr
2005

Fachzeitschrift
FISCAL STUDIES

Band
26

Ausgabe
4

Erste Seite
491

Letzte Seite
511

Seiten
491-511

Sprache
Englisch

ISSN
0143-5671

Affiliierungen
Univ Cologne