Steuerpolitik und Wirtschaftswachstum

The design of the tax system matters for economic growth. During times of economic crisis, tax instruments such as tempo- rary tax cuts can be used to soften adverse effects on the economy by stimulating private and corporate spending. However, empi rical evidence suggests that the overall impact of short term tax policies is limited. In the long run, the structure of the tax system is essential to building up an investment friendly and innovation-stimulating environment, which will promote sustainable economic growth.