Generous tax breaks for investment – out
But the state should avoid using its scarce resources for
more generous tax breaks for investment.
The corporate tax burden in Germany is low by international and
historical comparison and cannot justify additional tax
relief. Both economic theory and empirical evidence
demonstrate that corporate tax reductions have no
positive effect on investment.
Reducing tax rates above
all reduces tax revenues, without generating additional
investment (Corneo 2005).
EU Forecast
euf:ba18a:133/nws-01