Calls for a Capital Tax: Do the Additional Tax Revenues Offset the Disadvantages for Germany as a Business Location?

Can the currently discussed introduction of a capital tax lead to fairer taxation in Germany, or does it negatively impact Germany as a business location? Johanna Hey, University of Cologne, believes that the capital tax is only suitable for achieving financing and distribution goals to a limited degree. A capital tax is not the best tool for boosting tax revenues either, as it is a tax with relatively high collection costs. Hanno Kube, University of Heidelberg, highlights a constitutional limit on capital tax through the property guarantee. Inheritance tax, by contrast, is a constitutional instrument that is expressly designed to achieve intergenerational equal opportunities through the redistribution of wealth. For Dieter Birk, University of Münster, the arguments against reactivating a capital tax are stronger. For Ralf Maiterth, Humboldt University of Berlin, a reintroduction of capital tax would reduce the attractiveness of Germany as a location and would involve high compliance costs for moderate tax revenues. Jochen Sigloch, University of Bayreuth, would also find a vote in favour of bringing the capital tax back to life “surprising”. The introduction of income tax linked to the actual amount offers an up-to-date model of income taxation.