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Tax Reform and Debt Sustainability in Germany :, An Assessment Using the Global Fiscal Model, Dennis Botman, Stephan Danninger

In 2005, the German government announced a far-reaching fiscal adjustment program. This paper uses the IMF’s Global Fiscal Model to study its impact and explores options for addressing long-term pressures from population aging. The growth effects of the planned VAT increase are likely modest, largely owing to the stimulating effect of other tax reductions. The reform will improve the long-term debt path but achieving fiscal sustainability requires further adjustment over the medium term. An additional package of expenditure restraint, entitlement reform, and tax-base broadening compares favorably to other adjustment options. Spillover effects to trading partners of these policies are modest
Table Of Contents
Contents; I. Introduction; II. Analytical Framework and Calibration; III. Assessing Tax Policy Proposals; IV. Achieving Long-Term Sustainability; A. Comparing Tax Measures; B. Ranking Different Adjustment Strategies; C. Effects of Different Phasing of the Adjustment; V. Spillover Effects; VI. Sensitivity Analysis; VII. Conclusions; References
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (32 p.)
Specific Material Designation
Form Of Item

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