Fundamental Capital Income Tax Reforms

The present German tax system is complicated, non-transparent and does not follow any theoretical model of taxation in a consistent way. Moreover, in the light of international tax competition, German tax rates are too high and thus scare away economic activity. Therefore, a fundamental tax reform is imperatively required in Germany. Michael Stimmelmayr analyzes the outcome and especially the efficiency gains of capital income tax reforms which is, however, an intricate task. The simultaneous alteration of several tax rates will induce multiple economy wide repercussions as well as different first and second round effects, as firms and households will change their optimal behaviour due to taxation. For these reasons, a dynamic computable general equilibrium (CGE) model is the only instrument which allows for a consistent quantification of all short and long run effects arising from capital income tax reforms. The simulation results show that, for example, the 2000 German Tax Reform will lead to a substantial increase in GDP of approximately 6% in the long run. But, in the short run the reform is very expensive since the gains of economic growth will occur at a later stage in time. Moreover, due to the enhanced economic activity the wealth of German households will increase by nearly one percent in the long run. In addition to the 2000 German Tax Reform, the introduction of a flat tax of 25% - the so called "Kirchhof's Einfachsteuer " - as well as a consumption based tax system is analyzed in detail.

Der in Lateinamerika lebende Ökonom und Befreiungstheologe Franz J. Hinkelammert leistet hier eine brillante Kritik am herrschenden Dogma des Neoliberalismus. Er entlarvt das schwache theoretische Fundament und den Zynismus seiner Protagonisten. Immer wieder stellt er überraschende kulturgeschichtliche Bezüge her. Eine "Mystik des Todes" prägt die von der neoliberalen Ideologie beherrschte Gegenwart. Dem drohenden kollektiven Selbstmord will Hinkelammert eine "Kultur der Hoffnung" entgegensetzen, die die Lebensinteressen der Menschen in den Mittelpunkt stellt. Hinkelammerts scharfsichtige ökonomische Analysen und seine verblüffende Ideologiekritik sind ein Muss für alle Engagierten im Bereich Eine Welt und Ökologie. Ein Buch, das Klarheit ins Denken bringt und ein Gegengift gegen die Verzweiflung darstellt.

Auteur
Geboren 1978; Studium der VWL in München; 2006 Promotion an der Universität München bei Hans-Werner Sinn; seit 2006 Assistenzprofessur am Center for Economic Studies (CES) an der Universität München.

Texte du rabat
Michael Stimmelmayr undertakes the intricate task of analyzing the outcome and especially the efficiency gains of capital income tax reforms. The simultaneous alteration of several tax rates will induce multiple economy wide repercussions, as firms and households change their optimal behaviour due to taxation. Therefore, a dynamic computable general equilibrium (CGE) model is the only instrument which allows for a consistent quantification of all short and long run effects arising from capital income tax reforms. The author guides the reader through the setting-up of a dynamic CGE model - which was cited by German Council of Economic Advisors as the "most advanced version" in the group of dynamic CGE models - and discusses the simulation outcome of different German tax reforms and tax reform proposals such as the 2000 German Tax Reform, a flat tax of 25% (Kirchhof's Einfachsteuer) as well as a consumption based tax system.