The traditional fiscal policy of the nation is multidimensional. The traditional tax rates are variable and the basis for calculating the tax on corporate profits is biased. The purpose of this article is to show that the optimal allocation of resources in the economy tax rate is constant and is...

Earnings differences are a recurring topic of public discussion in Germany. Data from the long-term Socio-Economic Panel (SOEP) study as well as a separate survey of German employees (LINOS) show that earnings inequalities are generally perceived as fair while a substantial share of the...