Financing the German Federal System in the 1980s

Bibliographic Data

ID6374753
AuthorsRüdiger Voigt (corresponding author)
Year1989
Publication date1989-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenuePublius The Journal of Federalism (JOURNAL)
Journal identifiersISSN: 0048-5950 • E-ISSN: 1747-7107
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/oxfordjournals.pubjof.a037833
OpenAlexW2328123887
LanguageEN
Citations received4

Public finance is a crucial issue in any federation. In the system of shared public financing in Germany, no unit of government is fiscally dependent on the other. The federal and Land governments share the personal income tax, the corporation tax, and the value-added sales tax. Because the Bundesrat approves of the shares of these tax yields granted the federal and Land governments, the Länder are deeply involved in the public finance system. Fiscal equalization occurs both vertically and horizontally. The federal government provides the Länder with grants-in-aid, and also shares the financing of a number of “joint tasks.” The Länder share their tax yields with their local governments. Fiscal transfers also take place among the richer and poorer Länder and among the municipalities within the boundaries of individual counties. Controversy exists over the shares to be given the respective governments from the value-added tax and over fiscal equalization between the richer (South) and poorer (North) Länder

Ad valorem tax · Business · Corporation · Direct tax · Double taxation · Economic policy · Economics · German · Government (linguistics · Income tax · Macroeconomics · Public economics · Public finance · Tax reform · Value (mathematics · Value-added tax · Law and Political Science · Local Government Finance and Decentralization · Political Systems and Governance · Finance

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