1,721,092 research outputs found
Die Unternehmensteuerreform 2008: Deutschlands Antwort auf die Globalisierung - oder doch ein Stückwerk?
Get PDFZum Jahresbeginn trat die Unternehmensteuerreform 2008 in Kraft. Christian Baretti, Doina Maria Radulescu und Michael Stimmelmayr untersuchen hier, inwieweit die Reform die Attraktivität des Wirtschaftsstandorts Deutschland verbessert wird. Ihrer Ansicht nach wird die Senkung der Körperschaftsteuerbelastung für Kapitalgesellschaften diesem Ziel gerecht. Den weiteren - insbesondere zur Gegenfinanzierung - ergriffenen Maßnahmen fehlt es jedoch an Stringenz. Trotz positiver Signalwirkung zeugt die Steuerreform daher an vielen Stellen von Stückwerk.Steuerreform, Globalisierung, Unternehmensbesteuerung, Steuerbelastung, Kapitalgesellschaft, Deutschland
LABOUR TAXATION IN THE EUROPEAN UNION
Get PDFThis article proposes an analysis, which we consider extremely useful in the current economic context, of the evolution of labour income fiscality, more precisely, the effect of the public debt growth on the tax wedge for the labour income. The share of fiscal revenues from direct taxes, indirect taxes and social contributions is relatively close in the old member states of the European Union in comparison with the new member states, which register a lower level of income from direct taxes. The low level of income from direct taxes is compensated by more significant shares of the social contributions or indirect taxes. The main motivations of cross-border migration are: a successful career in a multinational corporation, high variations of the tax rate, of the salary income between states and, last but not least, the level of the net salary. To this day, there are no plans to harmonize across the European Union the legislation regarding the taxes wages and the social security contributions. Still, the European Union had in view the coordination of the national tax systems to make sure that the employees and the employers do not pay several times the social contributions in their movement across the community space. Despite the fact that some states tax the labour income at a low level, the labour fiscality remains high in the European Union in comparison with other industrialized economies, probably also due to the fact that the majority of the member states have social market economies. The increase of the fiscality level for the labour income determines the decrease of the employment rate and the raise of the unemployement rate. The solution to guarantee a higher employment rate, which is a target of the European Union Strategy "Europe 2020" could be the relaxation of the labour income fiscality by transferring the tax wedge on the labour income towards property or energy taxation.labour income, social contributions, tax quotas, taxes
From Separate Accounting to Formula Apportionment: Analysis in a Dynamic Framework
Get PDFThis paper analyzes the switch from Separate Accounting to Formula Apportionment in a dynamic framework. The model features both purely domestic corporations and a domestic multinational which invests at home and abroad as well as a purely foreign corporation and a foreign multinational which invests in the foreign economy as well as in the domestic country. Using such a framework we can show that since the new FA rules apply only to multinational firms, this will affect the domestic activity of purely domestic or foreign corporations since these stick to SA and thus the marginal product of labour and capital will be different for the two firm types. This in turn will affect the investment incentives and distort capital and labour allocation between the different types of enterprises operating in an economy.capital income taxation, separate accounting, formula apportionment, dynamic optimization, multinational firms
The Welfare Loss from Differential Taxation of Sectors in Germany
Get PDFIn the spirit of Harberger, we apply a dynamic computable general equilibrium (CGE) model and estimate the excess burden stemming from the tax-induced distortion in the allocation of capital across the corporate and the non-corporate sectors in Germany. In doing so, we perform a counterfactual analysis and ask how the allocation of capital across sectors would change compared with a sector-neutral tax system which assures an identical effective tax burden on both sectors. Our estimates suggest that the excess burden per period ranges from 2.0 to 3.6 billion Euros or from about 0.1 to 0.16 per cent of GDP. In present value terms, the excess burden translates to about 104 billion Euros or 4.7 per cent of GDP. In order to identify the impact of the firm’s financial behaviour on the size of the emerging excess burden, we perform several sensitivity analyses with regard to debt financing, external equity financing and debt constraints via agency cost.capital income taxation, non-uniform taxation, computable general equilibrium modelling
The Role of Tax Depreciation for Investment Decisions: A Comparison of European Transition Countries
Get PDFThis study compares incentive effects of various tax depreciation methods currently adopted in European transition economies. In these countries straight-line, geometric-degressive and accelerated depreciation measures are quite popular in combination with different corporate tax rates. Their generosity is determined on the basis of Samuelson’s true economic depreciation. For this purpose, the present value model is applied under the particular consideration of different financial structures. In this context the traditional Modigliani-Miller theorem for capital structure is revisited. Furthermore, the aspect of inflation is integrated into the model. The central issue is that the historical cost accounting method generally applied for the calculation of the corporate tax base causes fictitious profits in inflationary phases that are also taxed. Therefore, in an inflationary period generous tax depreciation provisions do not promote private investment as designed, but partly compensate such additional tax burdens caused by inflation.true economic depreciation, tax depreciation rules, corporate tax, investment decision, financial structure, net present value model, inflation, transition economies
Die Unternehmensteuerreform 2008: Deutschlands Antwort auf die Globalisierung - oder doch ein Stückwerk?
Get PDFZum Jahresbeginn trat die Unternehmensteuerreform 2008 in Kraft. Christian Baretti, Doina Maria Radulescu und Michael Stimmelmayr untersuchen hier, inwieweit die Reform die Attraktivität des Wirtschaftsstandorts Deutschland verbessert wird. Ihrer Ansicht nach wird die Senkung der Körperschaftsteuerbelastung für Kapitalgesellschaften diesem Ziel gerecht. Den weiteren - insbesondere zur Gegenfinanzierung - ergriffenen Maßnahmen fehlt es jedoch an Stringenz. Trotz positiver Signalwirkung zeugt die Steuerreform daher an vielen Stellen von Stückwerk
Types of Tax Concessions for Attracting Foreign Direct Investment in Free Economic Zones
Get PDFNot only transition countries but also a large number of developing (and developed) countries have established free economic zones (FEZs) with the aim of attracting foreign capital by providing tax incentives, creating employment opportunities and promoting exports as well as regional development. Major theoretical justifications for the establishment of such economic zones generally maintain that there are economies of scale in the development of land and in the provision of common services and utilities as well as external economies of agglomeration by having similar industries grouped together. One of the main characteristics of FEZs is the provision of generous tax investment promotion schemes solely allowed in this enclave. In general such measures include: (a) profit tax exemption, (b) free or accelerated depreciation, (c) investment tax allowance, (d) subsidy for investment costs, etc. The incentive e.ects of various tax concessions on firms’ investment decisions can be compared on the basis of the net present value model. Without taxation, the net present value (NPV) is equal to the present value of future gross return, discounted at an appropriate interest rate less investment cost. An investment project is therefore considered to be profitable when the NPV is positive. After introducing the corporate income tax, the present value of the asset generated from an investment amounts to the sum of the present value of net return (gross return less taxes) and the tax savings, led by, for example, an incentive depreciation provision. In this study the theoretical approach is accompanied by a model simulation based on selected parameters.tax concessions, free economic zone, investment decision, net present value
The Effects of a Bonus Tax on Manager Compensation and Welfare
Get PDFThis paper analyses the implications of a currently publicly debated issue, namely the introduction of a bonus tax. We shed light on the effects of the bonus tax on compensation components and study its incidence. We use the Principal Agent model within a two-country framework and consider two main scenarios. In the first scenario the firm cannot relocate managers between countries whereas in the second scenario relocation possibilities exist. Our findings show that the effort based compensation component always rises in the country introducing the tax such that the optimal contracts are tilted towards more effort based pay. Moreover, the bonus tax negatively affects profits and dividends and thus the incidence falls on the firm’s shareholders. With no relocation possibilities, the country that does not introduce such a tax will be worse off in terms of welfare, as the dividend income accruing to its residents declines. Accordingly, the bonus tax can be interpreted as a transfer from the worldwide shareholders to the government levying the tax. However, the welfare results may be reversed when manager relocation is an alternative. In this case, welfare in the country introducing the tax is lower than in the no relocation scenario, while the country that does not levy a bonus tax might even gain in welfare terms.bonus tax, labor taxation, effort, manager compensation, welfare
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