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Citizens Prefer Lower Taxes Than Parliaments (But Not Always)

Stephan Geschwind, Felix Rösel
ifo Institut, Dresden, 2021

ifo Dresden berichtet, 2021, 28, Nr. 5, 07-09

Are taxes higher or lower if citizens instead of parliaments legislate policies? A new study shows: It all depends on the tax category. Property tax, which everyone has to pay, is more likely to decrease. Business taxes, by contrast, remain almost unchanged. The results are based on a rule in the German Basic Law that allows direct democracy at the municipal level in Germany. 30 of about 11,000 municipalities in Germany do not elect municipal councils, but have a citizen assembly of all eligible voters as local legislature.

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ifo Institute, Dresden, 2021