Beispielfoto: Steuern

Taxation

Taxation is necessary in order to provide the government sufficient resources to be able to execute its functions.

The German tax system, however, suffers in many areas. The system is too complicated, incomprehensible, harms performance, and weakens German competitiveness. Though designed with individual justice in mind, a costly tax bureaucracy and excessive regulatory control have ultimately achieved injustice for all. Moreover, incessant, opaque changes to the tax law have undermined its acceptability in society and encourage evasion among the taxpaying public.

It is in the context of such a problem that the Market Economy Foundation strives for a simple, fair, and competitive system of taxation. This applies to the income tax, business taxation, value added tax, and municipal financing/local business taxes.

Value Added Tax

Our longstanding revenue-neutral proposal:16% on everything!


(on everything covered by the current value added tax plus aviation fuel).


We are very happy to report that other organizations, such as the INSM political campaign, have endorsed our 2007 suggestion.


For more information, read:

Pressemitteilung vom 30.12.2011 Press release from 30/12/2011, Value Added Tax 2012: Simplify Step by Step!

Pressemitteilung vom 08.11.2010 Press release from 08/11/2010, 16% Value Added Tax on Everything

Expert report by Dr. Joachim Englisch from 16/03/2009

Press Release from 07/05/2009

Conference report from the VAT conference on 15/10/2009

Municipal Finance Reform: New Report

The four column model for municipal finance reform, developed by the Tax Code Commission under the roof of the Market Economy Foundation, is an acclaimed proposal that found considerable support in political circles.

The original four column model for reform of municipal finances has been developed further and was re-introduced into the political arena. Under the new proposal, which has been slimmed down to three columns – the property tax, which remains unchanged, was excluded from reform – communal finances would no longer depend upon the volatile commercial tax, but instead would be supported by the income tax, municipal business tax, property tax as before, and the municipal share of the income tax. The Market Economy Foundation continues to support the implementation of this proposal.

The state of Lower Saxony has, in coordination with the Market Economy Foundation, authorised the Federal Statistical Office to thoroughly analyze the proposal with respect to Lower Saxon municipalities. The calculations are available through the following links:

Report on the quantification of the “Lower Saxon Model for Municipal Finance Reform” (Summary)

Notes on the Lower Saxon model of municipal finance reform.

Interview with Dr. Michael Eilfort, Director of the Market Economy Foundation, about Communal Finance Reform

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Under the following link, you can find the detailed report from WiR-Wirtschafts Regional:
2010-02_WIRTSCHAFT_REGIONAL_Steuern.pdf

The Tax Code Commission (Kommission Steuergesetzbuch) was born under the roof of the Market Economy Foundation.

Learn more about the commission's work:

Tax Code Commission

Service

Resident Expert

Barbara Bültmann

Barbara Bültmann

Taxation

Tel.: +49 (0)30 / 206057-36

E-Mail: bueltmann(at)stiftung-marktwirtschaft.de