The hidden burden of the income tax
Blaufus, Kay ;  Eichfelder, Sebastian ;  Hundsdoerfer, Jochen ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleThe hidden burden of the income tax
Subtitlecompliance costs of German individuals
AuthorBlaufus, Kay
AuthorEichfelder, Sebastian
AuthorHundsdoerfer, Jochen
InstitutionUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages38 S.
Series Discussion paper / School of Business & Economics ; 2011/6 : FACTS
KeywordsTax complexity; tax compliance costs; compliance burden; red tape; personal income tax
Classification (DDC)336 Public finance
AbstractWe analyze the compliance costs of individual taxpyers resulting from the German income tax. using survey data that has been raised between December 2008 and April 2009, we find evidence for a considerably higher cost burden of self-employed taxpaxers. Taxable income and the demand for external support are positively correlated with compliance costs, while the time effort of female taxpayers is significantly lower. We also find evidence for a positive correlation of education and tax knowledge with the compliance burden. By contrast, a joint assessment of a married couple seems to reduce the monetized time effort. The aggregated cost burden of German income taxpayers amounts to 6.1-7.2 billion €, respectively 3.2-3.7 % of the income tax revenue in 2007. This estimate is higher than latest projections in a number of other European countries like Spain and Sweden, but significantly lower than results for the United States and Australia.
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FU DepartmentDepartment Business and Economics
Year of publication2011
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2011-05-05 : 10:05:13
Last changed2015-01-22 : 04:40:42
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000010321