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Der deutsche Einkommensteuertarif: Wieder eine Wachstumsbremse?

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  • Alfred Boss
  • Achim Boss
  • Thomas Boss

Abstract

The structure of income taxation in Germany implies that the marginal and the average tax rates will rise significantly in the next years – even if the increase of nominal incomes is modest. The elasticity of the wage income tax revenues with respect to gross wages amounts to about 1.86, assuming that wages on average rise by 2 percent per year; such wage increases would probably mean that real wages hardly rise. The rising tax rates impair the incentives to work and dampen the growth of potential output. Regular tax rate cuts are necessary to avoid bracket creep. Indexation of the income tax system might be the solution.

Suggested Citation

  • Alfred Boss & Achim Boss & Thomas Boss, 2008. "Der deutsche Einkommensteuertarif: Wieder eine Wachstumsbremse?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(1), pages 102-124, February.
    • Handle: RePEc:bla:perwir:v:9:y:2008:i:1:p:102-124
    DOI: 10.1111/j.1468-2516.2007.00264.x
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    References listed on IDEAS

    as
    1. Boss, Alfred, 1990. "A model for simulating wage income tax revenues in the Federal Republic of Germany: Structure, predictive power and application," Open Access Publications from Kiel Institute for the World Economy 1999, Kiel Institute for the World Economy (IfW Kiel).
    2. Peter Haan & Viktor Steiner, 2004. "Distributional and Fiscal Effects of the German Tax Reform 2000: A Behavioral Microsimulation Analysis," Discussion Papers of DIW Berlin 419, DIW Berlin, German Institute for Economic Research.
    3. Boss Alfred & Elendner Thomas, 2004. "Vorschläge zur Steuerreform in Deutschland: Was bedeuten sie? Was “kosten” sie?," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 53(3), pages 259-286, December.
    4. Boss, Alfred, 1978. "Zur künftigen Entwicklung des Lohnsteueraufkommens in der Bundesrepublik Deutschland," Open Access Publications from Kiel Institute for the World Economy 3191, Kiel Institute for the World Economy (IfW Kiel).
    5. Boss, Alfred & Dovern, Jonas & Meier, Carsten-Patrick & Oskamp, Frank & Scheide, Joachim, 2007. "Verbessertes Arbeitsmarktumfeld stärkt Wachstum des Produktionspotentials in Deutschland," Kiel Discussion Papers 441/442, Kiel Institute for the World Economy (IfW Kiel).
    6. Boss, Alfred, 2004. "Radikale Steuerreform in Deutschland?," Kiel Working Papers 1208, Kiel Institute for the World Economy (IfW Kiel).
    7. Boss, Alfred & Elendner, Thomas, 2000. "Ein Modell zur Simulation des Lohnsteueraufkommens in Deutschland," Kiel Working Papers 988, Kiel Institute for the World Economy (IfW Kiel).
    8. Hindriks, Jean & Myles, Gareth D., 2013. "Intermediate Public Economics," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262018691, April.
    9. Boss, Alfred & Ente, Werner, 1988. "Die Einkommensteuertarife 1965, 1986 und 1990: Wo liegen die Unterschiede," Open Access Publications from Kiel Institute for the World Economy 1375, Kiel Institute for the World Economy (IfW Kiel).
    10. Nigar Hashimzade & Jean Hindriks & Gareth D. Myles, 2006. "Solutions Manual to Accompany Intermediate Public Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582694, April.
    11. Kamps, Christophe & Meier, Carsten-Patrick & Oskamp, Frank, 2004. "Wachstum des Produktionspotentials in Deutschland bleibt schwach," Kiel Discussion Papers 414, Kiel Institute for the World Economy (IfW Kiel).
    12. Boss, Alfred & Elendner, Thomas, 2005. "Incentives to work: The case of Germany," Kiel Working Papers 1237, Kiel Institute for the World Economy (IfW Kiel).
    13. Boss, Alfred & Ente, Werner, 1988. "Die Einkommensteuertarife 1965, 1986 und 1990: Wo liegen die Unterschiede?," Kiel Working Papers 311, Kiel Institute for the World Economy (IfW Kiel).
    14. Boss, Alfred, 1986. "Ein Modell zur Simulation des Lohnsteueraufkommens in der Bundesrepublik Deutschland - ein Beispiel für die Nutzbarmachung sekundärstatistischer Daten," Open Access Publications from Kiel Institute for the World Economy 1972, Kiel Institute for the World Economy (IfW Kiel).
    Full references (including those not matched with items on IDEAS)

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