The Globalization of Tax Policy : What German Politicians Believe

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URL:	https://ub-madoc.bib.uni-mannheim.de/1760
URN:	urn:nbn:de:bsz:180-madoc-17604
Document Type:	Working paper
Year of publication:	2007
The title of a journal, publication series:	ZEW Discussion Papers
Volume:	07-057
Place of publication:	Mannheim
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung School of Law and Economics > Finanzwissenschaft u. Wirtschaftspolitik (Janeba 2004-)
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: H25 D83 D78 ,
Subject headings (SWD):	Steuerwettbewerb , Deutschland / Steuersenkungsgesetz <2000> , Politiker , Meinung , Ideologie , Deutschland
Keywords (English):	Globalization , business taxation , tax competition , beliefs , member of parliament
Abstract:	The process of globalization has an important impact on national tax policies. Most of the literature on taxation of capital in open economies does not focus directly on the political decision making process and assumes that the desired tax policy is responding to objective underlying tradeoffs. Based on an original survey of members of German national parliament (Bundestag) in 2006/7 we document a strong ideological bias among policy makers with respect to the perceived mobility of international tax bases (mobility of real capital and shifting of paper profits). Ideology via party affiliation influences also directly and indirectly the perceived national autonomy in tax setting and preferences for a EU minimum tax for companies. There seems little consensus as to what the efficiency cost of capital taxation in open economies are, even though our survey falls in period of extensive debate about and actual adoption of a company tax reform bill in Germany.
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