Browsing by Subject "Steuergerechtigkeit"

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Optimal taxation under different concepts of justness
(2017) Rostam-Afschar, Davud; Jessen, Robin; Metzing, Maria
A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights for the working poor in practice. We reconcile this puzzle by generalizing the optimal taxation framework by Saez (2002) to allow for alternatives to welfarism. We calculate weights of a social planner’s function as implied by the German tax and transfer system based on the concepts of welfarism, minimum absolute and relative sacrifice, as well as subjective justness. For the latter we use a novel question from the German Socio-Economic Panel. We find that the minimum absolute sacrifice principle is in line with social weights that decline with net income. Absolute subjective justness is roughly in line with decreasing social weights, which is reflected by preferences of men, West Germans, and supporters of the grand coalition parties.
Steuerrechtliche Optionen und betriebswirtschaftliche Konsequenzen der interperiodischen Glättung von landwirtschaftlichen Einkünften
(2012) Blanck, Niklas; Bahrs, Enno
This thesis covers the potential introduction of income equalization deposits for German farmers. It provides a comprehensive overview of income equalization deposits regarding its legitimacy in German tax law, administrative constraints and the possibilities as well as the limits of income smoothing instruments in general. Furthermore, the economic effects on an on-farm level and consequences for the fiscal authorities are estimated. Due to an increasing variability in farm income, the German Farmers Association demanded the introduction of income equalization deposits in German tax law. Its aim is to avoid fluctuating incomes and to support farmers building reserve funds. The progressive income tax tariff leads to a progression-based extra tax load for annually fluctuating incomes compared to a constant year-to-year income. The income equalization deposit offers farmers the possibility to reduce their taxable income during successful years by creating untaxed reserves and accumulating cash in their own reserve fund. During less successful years, they are eligible to use the cash and have to pay tax on the so far untaxed reserves. This thesis explains the functionality and importance of untaxed reserves in general and the income equalization deposits for farmers in particular and examines their legitimacy according to German tax law. Untaxed reserves and other equalization instruments contradict the annual tax accounting period. Nevertheless there may be good reasons for their existence, e.g. the avoidance of undue hardship. Primary agricultural production is defined as the utilization of the natural resources of the soil to produce crops and raise livestock. This already suggests a special dependency on vagaries of nature. Constraints have to guarantee that the use of untaxed reserve is restricted to these special dependencies. Otherwise, equity in tax law is not preserved. Due to necessary constraints, which are in contrast with effectiveness and the achievement of objectives, a straight-forward use of income equalization deposits seems to be difficult. Therefore, income equalization deposits face the same difficulties like other equalization systems. The empirical survey uses data from approximately 5,300 farms from the German Farm Accountancy Data Network over a period of ten years. It evaluates the effectiveness of the existing two-year-average taxation for agricultural income in Germany (§ 4a EStG) and the additional use of the proposed income equalization deposit. Based on the income determination scheme, an optimization-algorithm calculates the maximal income smoothing effect for several farm typologies and estimates the effect for the fiscal authorities. The smoothing effect of the introduction of income equalization deposits turns out to be moderate compared to the existing two-year-average for farmers. The introduction of income equalization deposits does not contribute to the stabilization of farms in an appreciable extent. Necessary legal requirements and the administrative design may lead to the fact, that especially farmers, who have disposable cash and do not need any support, take advantage of the system. The construction of an effective system is in contrast with a design, which simultaneously meets all legal requirements. This divergences lead to the effect, that the beneficiaries of income equalization deposits are not congruent to the target group of an income equalization deposit. The empirical survey in combination with legal requirements and identified administrative difficulties leads to the conclusion, that the introduction of income equalization deposits in Germany does not seem to be necessary and other instruments of risk management should also be taken into account. In case income equalization deposits are introduced, essential requirements for its design and the design of income smoothing instruments in general have been elaborated.