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Diskussionspapiere 1751 / 2018
The use of video recordings in experimental economics has become increasingly popular. However, little attention is paid to how this might affect the composition of the participating subjects and the intended treatment effect. We make a first attempt to shed light on these issues and address them in an incentivized face-to-face tax compliance experiment. The experiment contains two dimensions; i) the ...
2018| Tim Lohse, Salmai Qari
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Refereed essays Web of Science
In aging societies, information on how to reform pension systems is essential to policy makers. This study scrutinizes effects of early retirement disincentives on retirement behavior, individual welfare, pensions and public budget. We employ administrative pension data and a detailed model of the German tax and social security system to estimate a structural dynamic retirement model. We find that ...
In:
Labour Economics
51 (2018), S. 25-37
| Timm Bönke, Daniel Kemptner, Holger Lüthen
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DIW Applied Micro Seminar
08.12.2017| Pauline Givord, INSEE, Paris
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Press Release
Small revenue and distribution effects – Overall, slight tax revenue losses due to a period of low interest rates – Raising the final withholding tax rate to over 25 percent would result in moderate additional revenue
Abolishing the final flat-rate 25 percent withholding tax on unearned income makes sense neither from a fiscal nor a distribution point of view as long as interest rates ...
08.11.2017
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Interview
Mr. Bach, to what extent could cutting the value-added tax rate relieve low- and middle-income earners?
If you want to provide significant fiscal relief to lower and middle income groups, you should focus more on the valueadded tax and less on the income tax. The value-added tax puts the burden on consumption, and consumer spending accounts for a much higher proportion of lower incomes than higher ...
02.08.2017| Stefan Bach
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Economic Bulletin
Completely eliminating the sharp rise in the tax rate for middle income households in Germany by changing personal income tax rates would mean estimated annual losses in tax revenue of 35 billion euros, or 1.1 percent of GDP. Taxpayers with high incomes would also benefit from this type of relief. The ten percent of the population with the highest income would have a relief of around 10.4 billion euros—over ...
18.05.2017| Stefan Bach, Hermann Buslei
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Interview
Mr. Bach, there is growing criticism that the middle income segments are suffering from a tax and social contribution burden that is too heavy. Does the middle class pay a disproportionately high amount of income tax?
Actually, the middle class has a relatively low income tax burden. This is because we use the basic personal exemption to shield the subsistence level from taxation, and a range of deductions ...
18.05.2017| Stefan Bach
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Refereed essays Web of Science
In many countries organized as federations, fiscal equalization schemes have been implemented to mitigate vertical or horizontal imbalances. Such schemes usually imply that the member states of the federation can only partly internalize (marginal) tax revenue before redistribution. Aside from the internalized marginal revenue, referred to as the marginal tax-back rate, the remainder is redistributed. ...
In:
German Economic Review
18 (2017), 3, S. 377-409
| Timm Bönke, Beate Jochimsen, Carsten Schröder
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Refereed essays Web of Science
This paper provides evidence on the question of who bears the burden of social security contributions (SSC) in Germany over a long-term horizon. Following Alvaredo et al. (De Econ, 2017) we exploit kinks in the budget set generated by a drop in the marginal SSC rate at earnings caps for health and long-term care insurance. These concave kinks lead to discontinuities in the distributions of gross earnings, ...
In:
De Economist
165 (2017), 2, S. 165-179
| Kai-Uwe Müller, Michael Neumann
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DIW Economic Bulletin 20 / 2017
Completely eliminating the sharp rise in the tax rate for middle income households in Germany by changing personal income tax rates would mean estimated annual losses in tax revenue of 35 billion euros, or 1.1 percent of GDP. Taxpayers with high incomes would also benefit from this type of relief. The ten percent of the population with the highest income would have a relief of around 10.4 billion euros—over ...
2017| Stefan Bach, Hermann Buslei