As substitution of the trade tax for a long time the local is creation of value-expensively suggested. It seizes the incomes developing with local production. An even taxation of the local creation of value requires the inclusion of the free occupations and the state institutions. With abolishment of the real estate tax also the land and housing industry could be included. As object expensive those exhibits creation of value-expensively a proportional control item, which can be relatively low because of the broad assessment basis (2.5 - 3%). In order to ensure and deepen the local financial autonomy, a rate of assessment right is to be granted to the municipalities.

Creation of value-expensively a set of characteristics exhibits, it as local tax particularly qualify. She takes part the municipalities evenly in the local resource, which comes in the creation of value to the expression. In the sense of the equivalence principle and the reconciliation of interests the enterprises finance in this way the local achievements, from which they profit as group. Since the circle of the taxpayers and the assessment basis are extended, leads creation of value-expensively in the comparison to the trade tax to an even distribution of arising. Also the stability of the tax revenue in the economic trend is improved. Overallally economic the creation of value corresponds to the national product, so that the incomes of the municipalities do not vary any longer more strongly than the economic activity.

A further advantage that creation of value-expensively is their high competition neutrality. Competition distortions on national level hardly still arise, as far as all enterprises are consulted evenly for the financing of the local achievements. Besides is creation of value-expensively neutral concerning the employment of the factors of production. However - as with the trade tax - an exemption of the exports cannot be made, so that the German offerers in the international competition appear further disadvantaged. On the other hand the overall economic efficiency requires also the load of the enterprises with zurechenbaren infrastructure costs. To that extent here a conflict between competition-political goals and the principles of the fiscal equivalence and the reconciliation of interests is present. The exemption of the creation of value contained in the exports serves in such a way seen less the neutrality of the taxation than covered export promotion. In all other respects each tax exemption for the export trade and industry must be bought with constant tax revenue by a higher direct or indirect load of the remaining enterprises.

Literature

Scientific adviser at the Federal Ministry of finances, appraisals for the reform of the local rates in the Federal Republic of Germany, Schriftenreihe of the Federal Ministry of finances, volume 31, Bonn 1982.

Related links

• Wolfgang Scherf, replacement of the trade tax by a to be taken into account creation of value-expensively, in: Restaurant economics, number 10, 2002, P. 603 FF. Download
• rossaepfel theorie.de: Longer passage to the creation of value tax with some Related links.

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