Janeba, Eckhard and Heinemann, Friedrich (2011): Viewing tax policy through party-colored glasses: What German politicians believe. Published in: German Economic Review , Vol. 12, No. 3 (August 2011): pp. 286-311.
Download (210kB) | Preview
Abstract: The process of globalization has an important impact on national tax policies. Most of the literature does not focus directly on the political decision making process and assumes that the desired tax policy is responding to objective underlying tradeoffs. Based on an original survey of members of German national parliament (Bundestag) in 2006/7 we document a strong ideological bias among policy makers with respect to the perceived mobility of international tax bases (real capital and paper profits). Ideology influences also directly and indirectly the perceived national autonomy in tax setting and preferences for a EU minimum tax for companies. There seems little consensus as to what the efficiency costs of capital taxation in open economies are, even though our survey falls in a period of extensive debate about and actual adoption of a company tax reform bill in Germany.
|Item Type:||MPRA Paper|
|Original Title:||Viewing tax policy through party-colored glasses: What German politicians believe|
|Keywords:||Globalization; business taxation; beliefs; member of parliament; profit shifting; party discipline; yardstick competition|
|Subjects:||H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy Formulation and Implementation
|Depositing User:||Eckhard Janeba|
|Date Deposited:||01. Sep 2011 12:32|
|Last Modified:||31. Dec 2015 09:21|
Alesina, A. and G.-M. Angeletos (2005). “Fairness and Redistribution”, American Economic Review 95(4), 960-980.
Alesina, A. and N. Fuchs-Schündeln (2007). “Good bye Lenin (or not?): The Effect of Communism on People`s Preferences”, American Economic Review 97(4), 1507-1528.
Ashworth, J. S. and B. Heyndels (1997). “Politicians’ Preferences on Local Tax Rates: An Empirical analysis”, European Journal of Political Economy 13, 479-502.
Ashworth, J. S. and B. Heyndels (2000). “Politicians’ Opinions on Tax Reforms”, Public Choice 103, 117-138.
Bénabou, Roland (2008). “Ideology”, NBER Working Paper 13907.
Bénabou, Roland and J. Tirole (2006). “Belief in a Just World and Redistribution Politics”, Quarterly Journal of Economics 112(2), 699-746.
Benoit, K. and M. Laver (2006). “Party Policy in Modern Democracies”, Routledge.
Besley, T. and A. Case (1995). “Incumbent Behavior: Vote Seeking, tax setting and yardstick competition”, American Economic Review 85, 25-45.
Birney, M., M.J. Graetz, and I. Shapior (2006). “Public Opinion and the Push to Repeal the Estate Tax”, National Tax Journal 59(3), 439-461.
Blinder, A. S. and A. Krueger (2004). "What Does the Public Know about Economic Policy, and How Does It Know It?", Brookings Papers on Economic Activity (1:2004), 327-397.
Caplan, B. (2002). "Systematically Biased Beliefs about Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy", The Economic Journal 112: 1-26.
Caplan, B. (2007). „The Myth of the Rational Voter: Why Democracies Choose Bad Policies“, Princeton University Press.
Deutscher Bundestag (2007a). „Entwurf eines Unternehmensteuerreformgesetzes 2008“, Drucksache 16/4841, March 27, 2007.
Deutscher Bundestag (2007b). „Stenografischer Bericht der 101. Sitzung vom 25. Mai 2007”, Plenarprotokoll 16/101.
Devereux, M. B., R. Griffith and A. Klemm. (2002). “Corporate income tax reforms and international tax competition”, Economic Policy 35, 449-496.
Festinger, L. (1957). “A Theory of Cognitive Dissonance”, Stanford University Press, Stanford.
Hanson, G. H., K. F. Scheve and M. Slaughter (2005). “Public finance and individual preferences over globalization strategies”, NBER Working Paper No. 11028.
Hardin, R. (1997). “The Economics of Religious Beliefs”, Journal of Institutional and Theoretical Economics 153, 259-284.
Haufler, A. (2006). „Die Besteuerung multinationaler Unternehmen“, University of Munich, Discussion Paper 2006-21.
Haufler, A. and G. Schjelderup (2000). “Corporate Tax Systems and Cross Country Profit Shifting”, Oxford Economic Papers 52, 306-325.
Krupnikov, Y., A.S. Levine, A. Lupia, and P. Markus (2006). “Public Ignorance and Estate Tax Repeal: The Effect of Partisan Differences and Survey Incentives”, National Tax Journal 59(3), 425-437.
Mayda, A. M. and D. Rodrik (2005). "Why are some people (and countries) more protectionist than others?", European Economic Review 49: 1393-1430.
Meltzer, A. and S. Richard (1981). “A rational theory of the size of government”, Journal of Political Economy 89, 914-927.
Mintz, J. and M. Smart (2004). “Income shifting, investment, and tax competition: theory and evidence from provincial taxation in Canada”, Journal of Public Economics 88, 1149-1168.
Murphy, K.M. and A. Shleifer (2004). “Persuasion in Politics”, American Economic Review, Papers and Proceedings, 94(2), 435-439.
Poguntke, T. (1994). “Parties in a Legalistic Culture: The Case of Germany”, in R.S. Katz and P. Mair: How Parties Organize, Sage Publications, London, 185-215.
Roberts, G. (1988). “The German Federal Republic: the two-lane route to Bonn”, in M. Gallagher and M. Marsh: Candidate Selection in Comparative Perspective, Sage Publications, London, 94-118.
Seltzer, R.A., J. Newman and M. Voorhees Leighton (1997). “Sex as a political variable: Women as candidates and voters in U.S. elections”, Lynne Rienner Publishers Inc.
Slemrod, J. (2003). “The role of misconceptions in support of regressive tax reform”, University of Michigan, November 3, 2003.
Steinbrück, P. (2007). “In Deutschland investieren“, Communication on the SPD Website, 30.03.2007, www.spd.de/menu/1710203/.
Stratmann, T. and M. Baur (2002). „Plurality Rule, Proportional Representation, and the German Bundestag: How Incentives to Pork-Barrel Differ Across Electoral Systems“, American Journal of Political Science 46, 506-514.
Thomas, S. (1994). “How women legislate”, Oxford University Press, New York.
Wilson, J.D. (1986). „A Theory of Interregional Tax Competition“, Journal of Urban Economics 19, 296-315.
Wilson, J.D. (1999). “Theories of Tax Competition”, National Tax Journal 52, 269-304. Zodrow, G. and P. Mieszkowski (1986 ). “Pigou, Tiebout, property taxation and the underprovision of local public goods”, Journal of Urban Economics 19, 356-370.