Österreichs Föderalismus ist durch eine komplexe und oft wenig transparente Verflechtung von Aufgaben-, Ausgaben- und Finanzierungsverantwortlichkeiten
zwischen den gebietskörperschaftlichen Ebenen gekennzeichnet, welche die gesamtstaatliche Steuerung beträchtlich erschwert.
Um Effizienz- und Steuerungsdefizite zu mildern, wird in Wissenschaft und finanzpolitischer Praxis schon geraume Zeit diskutiert,
den Finanzausgleich stärker "aufgabenorientiert" zu gestalten. Der vorliegende Beitrag diskutiert, ob und wieweit eine verstärkte
Aufgabenorientierung mit Konstruktionsprinzipien des Föderalismus und der institutionellen Kongruenz kompatibel ist.
This paper contributes to debates about the appropriate characterisation of heterogeneous investment types and to what extent
different investment motives affect the responsiveness to corporate taxation. In particular, we employ and refine a methodology
to better evaluate the tax elasticity of investment types. Using a combination of both firm‐specific and sector‐specific information
from input-output tables, we discuss how to classify investment as non‐related, horizontal, vertical and complex types. First,
we point out to what extent the resulting classification depends on assumptions made by the researcher. Second, we employ
an ample set of classifications and find that non‐related investment reacts stronger to corporate taxation, whereas horizontal
investment is less responsive, though, significant negative tax semi‐elasticities turn out for the subset of manufacturing
industries. To address inherent characteristics of vertical and complex investment, we extend the methodology and find that,
by and large, stronger business motives reduce the tax responsiveness of investment to a larger extent. Given the current
debates about substantial corporate tax reforms, it is all the more important to recognise that corporate tax effects can
vary fundamentally between countries, driven by country‐specific differences in their composition of industries and investment
Christine Benesch, Simon Loretz, David Stadelmann, Tobias Thomas
This paper empirically explores the link between mass media coverage of migration and immigration worries. Using detailed
data on media coverage in Germany, we show that the amount of media reports regarding migration issues is positively associated
with concerns about immigration among the German population. This association is strongest when immigrants are the protagonists
of media reports. The established relationship is robust to the inclusion of time-variant individual control variables and
individual fixed effects. We address endogeneity concerns by employing media spillovers from the neighboring country of Switzerland,
which occur due to referendum decisions on immigration, as an instrumental variable. The IV estimates suggest that media coverage
has a causal impact on immigration worries. The effect of media coverage persists even when worries concerning unemployment,
crime or the level of xenophobia are accounted for. Exploring subgroups of respondents reveals that the link between coverage
and immigration worries is particularly relevant for women and respondents who are not active in the workforce.
Simon Loretz, Richard Sellner, Bianca Brandl, Giampaolo Arachi, Valeria Bucci, Maarten van't Riet, Ali Aouragh
The aim of this study is to provide economic evidence of the relevance of aggressive tax planning (ATP) structures for all
EU countries. The study relies on economic indicators available at macro level and on indicators derived from firm-level data.
The objective is indeed to look at the relevance of ATP for all EU countries through these two complementary angles. For each
indicator, the study identifies outliers based on a consistent methodology. None of the indicators provides per se an irrefutable
causality towards aggressive tax planning. However, considered together, the set of indicators shall be seen as a "body of
evidence". While there is some data limitation, the study provides a broad picture of which country appears to be exposed
to ATP structures, and how it impacts on their tax base (erosion or increase). The discussed ATP structures can be grouped
into three main channels: ATP via interest payments, ATP via royalty payments, and ATP via strategic transfer pricing. In
addition to general indicators assessing the overall exposure to ATP, we also derive specific indicators for each of the ATP
channels. In combination, these indicators allow to classify entities within multinational enterprises into three types: target
entities, where the tax base is reduced; the lower tax entities where the tax base is increased but taxed at a lower rate;
and conduit entities which are in a group with ATP activities but no clear effect on the tax base is observable.
This chapter draws on our two studies published by the International Centre for Tax and Development (ICTD), using the two
leading datasets on the global activity of multinational enterprises (MNEs). The approaches are complementary but necessarily
distinct, given the difference in available data. We summarise the approaches taken, and the specific findings that emerge
from each, and then highlight three major common results. First, notwithstanding uncertainty and data issues, this is a first-order
problem in relation to the world economy. Second, the overall effect of a switch to unitary taxation, almost regardless of
the actual apportionment formulas used, would be a substantial redistribution from MNEs towards most countries of the world.
Only a handful of jurisdictions would see significant revenue losses, and these are far outweighed by the gains of all others.
Third, there are significant differences in the extent of redistribution implied by a global apportionment approach relying
on different factors – with corresponding implications for the development impact of given global choices, and/or for unilateral
decisions at regional and national level. Overall, the findings confirm the critical importance of improving the available
data. In doing so, they underline the failure of the OECD base erosion and profit shifting (BEPS) process to deliver on commitments
in this area, but also highlight the potential of using the newly-required country-by-country reporting data of MNEs. A specific
proposal for a data registry is put forward.
This paper highlights the importance of different investment motives and to what extend they affect the responsiveness to
corporate taxation. In particular, we discuss how to classify investment as non-related, horizontal, vertical and complex
types using a combination of both firm-specific (ownership) information and sector-specific information from input-output
tables. Hereby, we point out to what extent the resulting classification depends on assumptions made by the researcher. Following
this, we examine the effects of host-country corporate taxation on the volume of investment within related firms (i.e., the
intensive margin). We are able to quantitatively replicate the average result in the empirical literature with an overall
tax semi-elasticity of approximately –1.5. Taking into account firm-heterogeneity we find that non-related investments react
stronger to corporate taxation whereas horizontal investments are less responsive, though, significant negative tax semi-elasticities
turn out for the subset of manufacturing industries where horizontal investment is much more prevalent. As the strict categorical
classification still yields ambiguous results for both vertical and complex investments we extend the methodology by defining
shares of investment and make the point that, by and large, stronger business motives reduce the tax responsiveness of investment.
Helmut Hofer, Raphaela Hyee, Simon Loretz, Sandra Müllbacher, Massimo Baldini, Giovanni Gallo, Izabela Styczyńska, Gokben Aydilek, Tarmo Valkonen, Stuart Adam, David Philips
During the last decade the beer market has been in the focus of the media, largely because of spectacular mergers among the
big players. The formation of Anheuser-Busch InBev created the world's largest brewing company with a global market share
of approximately 20 percent. This consolidation process in the beer market triggered substantial interest as to how concentrated
the market will eventually become and its key driving forces.
Die Situation des österreichischen Föderalismus ist geprägt durch ein starkes vertikales fiskalisches Ungleichgewicht, vor
allem die Länder haben kaum Autonomie über die Einnahmen. Diese Diskrepanz ist u. a. auf eine Angst vor ruinösem Steuerwettbewerb
zurückzuführen, führt aber gleichzeitig zu einem Mangel an Transparenz und verändert Anreize für die lokalen Entscheidungsträger.
Eine Umwandlung der Ertragsanteile von Lohn- und Einkommensteuer und Körperschaftsteuer in teilweise Steuerautonomie der Bundesländer
würde wesentlich zur Transparenz beitragen und könnte durch einsetzenden Steuerwettbewerb auch die Anreize für effiziente
lokale Verwaltung verbessern. Erfahrungen aus anderen föderalen Staaten zeigen auch, dass Steuerwettbewerb ein wesentlicher
Bestandteil des fiskalischen Föderalismus ist und dass die Rahmenbedingungen wie klare Aufgabentrennung zwischen den Gebietskörperschaften
und ein entsprechend ausgestalteter horizontaler Finanzausgleich den fiskalischen Wettbewerb in gesunde Bahnen lenken können.
This survey summarises the state and development of European tax policy, in particular discussing the harmonisation progress
in direct as well as indirect taxes. Based on an overview over the theoretical and empirical literature on tax competition,
we further ask whether increased tax coordination is necessary to prevent a race to the bottom. We show that theoretical predictions
on the outcome of tax competition are ambiguous, and the empirical evidence in this regard is inconclusive as well. This,
in turn, gives rise to an only limited scope of stronger tax harmonisation.