Einfach ist nicht immer gerecht: Eine Mikrosimulationsstudie der Kirchhof-Reform für die Einkommensteuer

Max Löffler; Andreas Peichl; Nico Pestel; Hilmar Schneider; Sebastian Siegloch

doi:10.3790/vjh.80.4.147

Einfach ist nicht immer gerecht: Eine Mikrosimulationsstudie der Kirchhof-Reform für die Einkommensteuer

Max Löffler, Andreas Peichl, Nico Pestel, Hilmar Schneider, Sebastian Siegloch

GSBE other - not theme-related research

Research output: Contribution to journal › Article › Professional

Abstract

In this contribution we analyze Paul Kirchhof‘s income tax policy proposal with regard to conflicting goals of tax revenue, distributional effects and efficiency considerations. While effects on labor supply are moderate, the tax policy proposal reduces government budget revenue by 20 billion euros. Moreover, it has a considerable effect on income inequality. Despite broadening the tax base only the income distribution's top decile benefits from the proposed flat tax rate. Due to these problematic effects we conclude that the Kirchhof proposal is not politically enforceable.

Original language	German
Pages (from-to)	147–160
Journal	Vierteljahrshefte zur Wirtschaftsforschung
Volume	80
Issue number	4
DOIs	https://doi.org/10.3790/vjh.80.4.147
Publication status	Published - 2011

JEL classifications

d31 - Personal Income, Wealth, and Their Distributions
h24 - "Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes"
j21 - Labor Force and Employment, Size, and Structure

Keywords

tax simplification
Kirchhof
microsimulation
labor supply
income inequality

Access to Document

10.3790/vjh.80.4.147

Cite this

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title = "Einfach ist nicht immer gerecht: Eine Mikrosimulationsstudie der Kirchhof-Reform f{\"u}r die Einkommensteuer",

abstract = "In this contribution we analyze Paul Kirchhof{\textquoteleft}s income tax policy proposal with regard to conflicting goals of tax revenue, distributional effects and efficiency considerations. While effects on labor supply are moderate, the tax policy proposal reduces government budget revenue by 20 billion euros. Moreover, it has a considerable effect on income inequality. Despite broadening the tax base only the income distribution's top decile benefits from the proposed flat tax rate. Due to these problematic effects we conclude that the Kirchhof proposal is not politically enforceable.",

keywords = "tax simplification, Kirchhof, microsimulation, labor supply, income inequality",

author = "Max L{\"o}ffler and Andreas Peichl and Nico Pestel and Hilmar Schneider and Sebastian Siegloch",

note = "data source: German Sozio-oekonomisches Panel Study (SOEP), version 26, data of the years 1984–2009, DOI: 10.5684/soep.v26",

year = "2011",

doi = "10.3790/vjh.80.4.147",

language = "German",

volume = "80",

pages = "147–160",

journal = "Vierteljahrshefte zur Wirtschaftsforschung",

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publisher = "Duncker und Humblot GmbH",

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T1 - Einfach ist nicht immer gerecht: Eine Mikrosimulationsstudie der Kirchhof-Reform für die Einkommensteuer

AU - Löffler, Max

AU - Peichl, Andreas

AU - Pestel, Nico

AU - Schneider, Hilmar

AU - Siegloch, Sebastian

N1 - data source: German Sozio-oekonomisches Panel Study (SOEP), version 26, data of the years 1984–2009, DOI: 10.5684/soep.v26

PY - 2011

Y1 - 2011

N2 - In this contribution we analyze Paul Kirchhof‘s income tax policy proposal with regard to conflicting goals of tax revenue, distributional effects and efficiency considerations. While effects on labor supply are moderate, the tax policy proposal reduces government budget revenue by 20 billion euros. Moreover, it has a considerable effect on income inequality. Despite broadening the tax base only the income distribution's top decile benefits from the proposed flat tax rate. Due to these problematic effects we conclude that the Kirchhof proposal is not politically enforceable.

AB - In this contribution we analyze Paul Kirchhof‘s income tax policy proposal with regard to conflicting goals of tax revenue, distributional effects and efficiency considerations. While effects on labor supply are moderate, the tax policy proposal reduces government budget revenue by 20 billion euros. Moreover, it has a considerable effect on income inequality. Despite broadening the tax base only the income distribution's top decile benefits from the proposed flat tax rate. Due to these problematic effects we conclude that the Kirchhof proposal is not politically enforceable.

KW - tax simplification

KW - Kirchhof

KW - microsimulation

KW - labor supply

KW - income inequality

U2 - 10.3790/vjh.80.4.147

DO - 10.3790/vjh.80.4.147

M3 - Article

SN - 0340-1707

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JO - Vierteljahrshefte zur Wirtschaftsforschung

JF - Vierteljahrshefte zur Wirtschaftsforschung

IS - 4

ER -