TY - UNPB

T1 - Professions, entrepreneurs, employees and the new German tax (cut) reform 2000

T2 - a MICSIM microsimulation analysis of distributional impacts

AU - Merz, Joachim

AU - Stolze, Henning

AU - Zwick, Markus

N1 - Zsfassung in dt. Sprache

PY - 2002/7

Y1 - 2002/7

N2 - With the tax reform 2000 Germany has seen the implementation of the most ambitious tax reduction programme in its post-war history. In the period from 1998 to 2005, taxpayers will benefit substantially from net tax relief more than DM 100 billions in total. It is expected, that private consumption and investment are stimulated - two essential requirements for promoting growth and employment. Under the aspect of the tax reform 2000 and the ‘Karlsruher Entwurf’ (an expert draft on further income tax reform approaches) compared to the former taxbase system we investigate in our paper overall and distributionaland redistributional impacts on the self employed (professions (free lancers) and entrepreneurs) and employees besides other socioeconomic grouping like gender and family type. In addition, a decomposition analysis based on a generalized entropy approach quantifies the socioeconomic subgroups’ inequality contribution to overall inequality.Together with the recent poverty and wealth report for our government, this is the first time that the anonymized microdata records of the German Income Tax Statistic can be used by researchers within the Federal Statistical Office. Such a microdata file is essential for analysing above all the often neglected situation of the selfemployed; in traditional surveys, where, in principle, firm information yielding the final income and taxes to be paid are not available for the self-employed.

AB - With the tax reform 2000 Germany has seen the implementation of the most ambitious tax reduction programme in its post-war history. In the period from 1998 to 2005, taxpayers will benefit substantially from net tax relief more than DM 100 billions in total. It is expected, that private consumption and investment are stimulated - two essential requirements for promoting growth and employment. Under the aspect of the tax reform 2000 and the ‘Karlsruher Entwurf’ (an expert draft on further income tax reform approaches) compared to the former taxbase system we investigate in our paper overall and distributionaland redistributional impacts on the self employed (professions (free lancers) and entrepreneurs) and employees besides other socioeconomic grouping like gender and family type. In addition, a decomposition analysis based on a generalized entropy approach quantifies the socioeconomic subgroups’ inequality contribution to overall inequality.Together with the recent poverty and wealth report for our government, this is the first time that the anonymized microdata records of the German Income Tax Statistic can be used by researchers within the Federal Statistical Office. Such a microdata file is essential for analysing above all the often neglected situation of the selfemployed; in traditional surveys, where, in principle, firm information yielding the final income and taxes to be paid are not available for the self-employed.

KW - Economics

KW - Deutschland

KW - Steuerreform

KW - Steuerwirkung

KW - Einkommensverteilung

KW - Mikrosimulation

KW - Einkommenssteuerreform

KW - Karlsruher Entwurf

KW - Selbständige

KW - Freie Berufe

KW - Unternehmer

KW - Angestellte

KW - Verteilungs- und Umverteilungseffekte

KW - Ungleicheit und Dekomposition von Ungleichheit

KW - Microsimulation

KW - German tax reform

KW - distribution of income

KW - redistribution

KW - self-employed

KW - liberal professions

KW - entrepreneurs

KW - distributional and redistributional policy impacts

KW - inequality and decomposition of inequality

M3 - Working papers

T3 - Diskussionspapier

BT - Professions, entrepreneurs, employees and the new German tax (cut) reform 2000

PB - Forschungsinstitut Freie Berufe

CY - Lüneburg

ER -