Economist for Financial Policy and Tax Policy
Tel+49 221 4981-736
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The fall in income tax revenues resulting from a shrinking and ageing society will place a huge strain on government finances. In 20 years’ time the annual price-adjusted revenue from income tax is simulated to be € 18 billion or almost 7 per cent lower than today.
In the course of the “Panama Papers” discussion, questions arise concerning the fiscal effects of international profit shifting and tax avoidance. A recent OECD study estimates the worldwide corporate tax losses to lie between 4 and 10 percent of the revenues. Applied to Germany, this would reflect between 3 and 7 billion Euro or maximum 1 percent of total tax revenues. However, the estimation underlies questionable assumptions and therefore severe uncertainties.
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