Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/252284 
Year of Publication: 
2022
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 12 [Issue:] 11 [Publisher:] Deutsches Institut für Wirtschaftsforschung (DIW) [Place:] Berlin [Year:] 2022 [Pages:] 77-84
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Although economic growth continued to be lukewarm in 2021, tax revenue increased significantly, even exceeding the pre-crisis level despite economic policy measures associated with revenue losses. During the 2008-2011 global financial crisis, tax revenue followed a different path: Its recovery lagged behind economic recovery, first reaching the pre-crisis level in 2011. In 2021, value-added tax (VAT) increased as expected following the temporary reduction of the VAT rates in 2020, as did the pay-as-you-earn tax due to the reduction of short-time work. In contrast, taxes on profits have experienced unexpectedly high growth. Clearly, economic policy has stabilized incomes more successfully via rapid and comprehensive measures during the coronavirus pandemic than it did during the global financial crisis. However, price developments are likely to be driving the strong increase in-nominal- profit income. This is one reason that the plans to provide households with relief to help them cope with skyrocketing energy prices and to increase the personal allowance are the right decisions.
Subjects: 
tax revenue
macroeconomic development
corona economic crisis
global financial crisis
JEL: 
E62
H20
H30
Persistent Identifier of the first edition: 
Document Type: 
Article

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