Manfred RoseRechtsgrundlagen für ein neues Steuersystem

About this book deutschenglish

For decades, tax policy in Germany has not been able to regulate the taxation of citizens’ income with a transparent, simple and fair law. With this book, the author clarifies the real problems of current income tax law. With the development of a draft law that has been reduced to a few core elements and an associated statutory order, it offers a way of overcoming the existing complexity. The detailed explanations of these legal bases explain which of the current regulations are to be reformed and for what reasons.

The focus of newly regulated issues is the assessment base and tariff for income tax, the taxation of profits of personally managed companies and the taxation of income from financial investments. The first-mentioned area of regulations is about the abolition of existing privileges from the deduction of certain private expenditures that lead to additional tax revenues, which can be used to reduce the tax burden of lower and middle incomes. In connection with the proposal to replace the current non-transparent mathematical formula tariff with a transparent tariff with taxrates in steps, changes in the tax burden of citizens with low, middle and high incomes are documented.

The profits of personally managed companies (sole proprietorships, partnerships and unlisted corporations) are determined with the deduction of standardized interest on equity and, if they are retained, only taxed at 25%. This guarantees the neutrality of decisions by entrepreneurs concerning the level and the way financing investments as well as the legal form of the enterprise.

The profits (income) of savers from financial investments are taxed in the case of their retaining in a qualified bank account in the same way as retained profits of personally managed enterprises. In order to reduce the pre-tax burden on dividends through taxes on corporate profits, only half of the received amount should be subject to the income tax.

If profits which are taxed previously at 25 percent are withdrawn, they are subject to the progressive income tax tariff with full deduction of the paid proportional tax. The obligation to post tax on withdrawn profit parts in the amount of the interest on the equity capital is reduced by a significantly higher saver tax credit.

Ihr Werk im Verlag Dr. Kovač

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