Die in Aussicht gestellten Steuererleichterungen sind das beherrschende Thema der ersten Wochen nach Amtsantritt der neuen Bundesregierung. Die vorliegende Studie enthält eine Simulation der mutmaßlichen Effekte einer Umsetzung des von der FDP vorgeschlagenen Stufentarifs und Bürgergelds auf...

This paper explores the e ffects of fi scal policy in an economy based on indirect taxes, and one that is constrained to taxing all (labor and capital) income at the same rate. The focus of the paper is on the relative importance of consumption vs. income taxation, as well as on the provision of...

A benchmark result in the political economy of taxation is that majority voting over a linear income tax schedule will result in an inefficiently high tax rate whenever the median voter has a below average income. The present paper examines the role of tax avoidance for this welfare assessment....

Using a two-moment decision model this paper analyzes corporate hedging behavior in the presence of unified and differential income taxation. We start with the well-known result that risk-taking may increase when income tax rates increase and, therefore, the incentive for hedging reduces. We...