Steuern, Staatsausgaben und Umverteilung

Abstract

The government's financial policy always has distributive effects which are, however, difficult to estimate in the individual case. The past 15 years in the Federal Republic of Germany have been determined by a strong shift of the distributive relations for the benefit of profit income; this development was reinforced by the state. The way of financing German Unity by tax and contribution increases was also problematic in view of distribution policy. The increases especially burdened low and middle incomes, while self-employed were completely and civil servants were partially excepted from the increase in social security contributions. Not until after the reintroduction of the surcharge of solidarity (Solidaritätszuschlag) on January 1st 1995, the falseness in respect to distribution policy was corrected to some extent.