National Revenue Effects of the OECD Proposals on the Redistribution of Taxation Rights – Is the ifo Study a Reliable Basis for the German Negotiating Line?

In June 2020, the ifo Institute presented a forecast of the effects on German income tax revenue that might arise from the implementation of the OECD proposals on the redistribution of taxation rights. In its baseline scenario, the study assumes an increase of around EUR 600 million per year. Grit Kulemann and Peter Mandler, from the financial authorities of the state of Hesse, examine how reliable this estimate is.