Navigation path  Country Focus  Karolina Leib, European
Commission  Decomposing total tax revenues in Germanypdf(148 kB)
Choose translations of the previous link   (Country Focus. 3.
March 2010. Brussels. PDF. 8pp. Tab. Graph. Ann. Free.) KC-
XA-10-003-EN-N ISBN: 13-978-92-79-14944-3 ISSN: 1725-8375
Volume 7, Issue 3, 19.03.2010  Given the consolidation needs and
the provisions of the new fiscal rule, budgetary planning in
Germany has become more demanding. Fiscal projections are
already difficult since the link between total tax revenue and
economic activity is observed to be unstable.  This Country
Focus identifies three key drivers behind total tax revenue
developments: (1) the composition of the GDP growth - if
economic growth is driven by less "tax-rich" components, such as
exports, the revenue-to-GDP ratio tends to decline, (2) frequent
and often complex discretionary policy interventions and (3)
other factors such as fiscal drag effects or changes in the
behaviour of tax subjects.  The new fiscal rule