Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24222
Authors: 
Boeters, Stefan
Böhringer, Christoph
Büttner, Thiess
Kraus, Margit
Year of Publication: 
2006
Series/Report no.: 
ZEW Discussion Papers 06-30
Abstract: 
In the tax policy debate, differentiation of value-added taxes is often justified by distributional concerns. Our quantitative analysis for Germany indicates that such concerns are misplaced. We find that the abolition of VAT differentiation has only negligible redistributive effects. Instead, reduced VAT are found to act as industry-specific subsidies. Whereas the overall welfare effects of pure VAT reforms are very small, a revenue-neutral introduction of a harmonised VAT combined with reductions in the marginal income tax rates or social security contributions turns out to produce substantial welfare gains for all households.
Subjects: 
VAT
tax reforms
distribution
efficiency
applied general equilibrium
JEL: 
H24
H22
D58
Document Type: 
Working Paper

Files in This Item:
File
Size
348.1 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.