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Die Reform der Vermögensbesteuerung: Kapitalkosten und Immobilieninvestitionen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 116 (1996), Iss. 4 : pp. 531–560
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Scholten, Ulrich
Abstract
The existing german taxation of real estate by the wealth tax and the property tax implies a distinct preferential treatment of investment in housing. Therefore, it is intended to eliminate this discrimination in the near future by increasing the real estate's tax base or by abolishing the wealth tax. The paper shows that these policy measures have an ambiguous effect on the incentive to invest in the housing sector: investment may increase or decrease. This ambiguous effect is shown by calculating the cost of capital within three different scenarios of a tax reform.