Effective Tax Burden in Europe

Executive Summary.- 1.1 Background, aim and structure of the study.- 1.2 Methodological concept of the European Tax Analyzer.- 1.3 Tax parameters incorporated into the model.- 1.4 Structure of the model-firm and other economic assumptions for the base case.- 2 Comparison of the effective tax burden over a ten year period for a base case scenario assuming the tax regimes for the fiscal year 1999.- 2.1 Tax burden at the level of the corporation.- 2.2 Tax burden at the overall level (corporation and domestic shareholders).- 2.3 Conclusions.- 3 Sensitivity analysis.- 3.1 Primary remarks.- 3.1 Level of the corporation.- 3.3 Overall level (corporation and domestic shareholders).- 3.4 Conclusions.- 4 Effects of the German tax reform 2001.- 4.1 Description of major tax changes.- 4.2 Changes of the tax burden at the level of the corporation.- 4.3 Changes of the tax burden at the overall level (corporation and domestic shareholders).- 4.4 Conclusions.- 5 Changes of the effective average tax burden since 1995.- 5.1 Changes of the tax burden at the level of the corporation.- 5.2 Changes of the tax burden at the overall level (corporation and domestic shareholders).- 5.3 Conclusions.- 6 Impact of hypothetical tax reforms in the EU.- 6.1 Overview on simulations.- 6.2 Reforming the corporation tax bases.- 6.3 Reforming the corporation tax rates and the local taxes.- 6.4 Reforming the corporation tax systems.- 6.5 Conclusions 85.- 7 Comparison of the European Tax Analyzer results with those obtained by the Devereux-Griffith model.- 7.1 Problems inherent in comparing results obtained by different approaches.- 7.2 Comparison of the effective tax burdens for the base case scenarios.- 7.3 Effects of the German tax reform 2001.- 7.4 Effects of hypothetical tax reforms in the EU.- 7.5 Conclusions.- 8 Final conclusion.- References.- Appendix A: Financial ratios of the different industries.- Appendix B: Detailed results for the base case (section 2) and the sensitivity analysis (section 3) including the German Tax reform 2001 (section 4).- Appendix C: Changes of the effective average tax burden since 1995 (section 5).- Appendix D: Impact of hypothetical tax reforms in the EU (section 6).- List of Figures.- List of Tables.