We analyze the development perspectives of Germany’s and Austria’s tax
systems, considering the massive economic and societal challenges of digitalization,
economic inequality and climate change. Digitalization complicates taxation due
to decreasing physical presence and increasing international mobility of tax bases.
Since labor is internationally less mobile, taxes on labor income will remain an integral
part of both countries’ tax systems. This is also true for the value added tax that
taxes local consumption, which is internationally hardly mobile. In contrast, taxes
on mobile corporate profits will tend to lose importance as long as tax competition is
not effectively curbed by international co-operation. Therefore, taxation of corporate
profits should be oriented to the individual final beneficial owners who tend to be
largely immobile. Due to high compliance costs and possibilities for international
tax avoidance, the wealth tax is inappropriate to tackle economic inequality. The
estate and gift tax, without an exemption for business property, is better suited to
reduce inequality. If taxation should serve as a means against climate change, a
global uniform tax on CO2 is necessary. Its level should correspond to the envisaged
emissions reduction. Since environmental taxes cannot be avoided in the short and
medium term, the resulting distribution effects have to be considered.
Translation of the title:
Challenges and development perspectives of the tax system
(English)
Dieser Eintrag ist Teil der Universitätsbibliographie.
Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.
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