The Corporate tax reform of 2008: Germany's answer to globalization - or just patchwork?

Abstract

At the beginning of 2008 the enterprise tax reform took effect in Germany. Christian Baretti, Doina Maria Radulescu and Michael Stimmelmayr examine the extent to which the reform has improved Germany's attractiveness as a business location. In their opinion the lowering of the tax burden for corporations is in keeping with this goal. The arguments for the other measures - in particular the counter-financing - are not so compelling, however. Despite its positive signals, the tax reform proves to be a patchwork in many areas.