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Composition effects of the German Federal Government on the average top income tax burden

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  • Scharfenkamp, Katrin

Abstract

This paper investigates whether the setting of the German top income tax burden is affected by the composition of the Federal Government in terms of connectedness with the national (academic) elite and company network from 1958 to 2011. The results reveal that the percentages of university graduates, former executive board members, as well as the government's average age at the time of decision are related to a lower average top income tax burden. Conversely and surprisingly, an increasing percentage of former members of a supervisory board is associated with a higher average top income tax burden. Interestingly, varying percentages of governmental members with an elitist social background are not aligned with the tax setting. Finally, the higher the difference of mandates between CDU & CSU and those of the SPD in the German Parliament, the lower is the average top income tax burden.

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  • Scharfenkamp, Katrin, 2013. "Composition effects of the German Federal Government on the average top income tax burden," Discussion Papers of the Institute for Organisational Economics 2/2013, University of Münster, Institute for Organisational Economics.
    • Handle: RePEc:zbw:umiodp:22013
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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