Abstract
During the 1970s until the early 1980s in most industrial countries a major objective of tax policy and fiscal policy was to stimulate economic growth by special investment promotion measures. Various instruments were used as investment tax credits, favourable depreciation allowances etc. The combination of high statutory tax rates and favourable depreciation allowances provided a strong impulse to business investment. This philosophy has changed and the main objective of present tax reforms is to reduce statutory tax rates and to broaden the tax base. By that means the tax system is supposed to become fairer, simpler and less vulnerable to ad hoc changes.
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© 1989 Springer-Verlag Berlin Heidelberg
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Leibfritz, W. (1989). Taxation of Capital Income in the Federal Republic of Germany. In: Funke, M. (eds) Factors in Business Investment. Microeconomic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-48748-4_8
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DOI: https://doi.org/10.1007/978-3-642-48748-4_8
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-48750-7
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