Integration, decentralization, taxation, and revenue sharing : Good governance, sustainable fiscal policy and poverty reduction as peace-keeping strategies

Figure 10: Main Form of the Easy Tax Proposal 
9
Markteinkommen
[Summe: (6) bis (8)]
+
24 975
+
24 675
10
Lebensbedarfsbezüge
0
0
11 
Lebensbedarfsabzüge 
- 
12 295
- 
12 295
12
Zu versteuerndes Einkommen 
[Summe: (9) bis (11)]
+
12 680
+
12 380
13
Steuerschuld {+} :
Steuersatz 
u
Betrag in (12)
 
Steuervergütung
{-} :

Steuersatz 

u
Betrag in (5), wenn dieser 
negativ und ein Steuerguthaben vorhanden 
ist
+
3 170
+
3 095
14
Anrechenbare Einkommensteuern
-
3 170
-
3 170
15
Zu zahlende Steuer {+}
Zu erhaltende Steuer {-} 
[Summe: (13) und (14)]
0
-
75
Bankkonto
Nr.
Kreditinstitut: 
Bankleitzahl:
Ich versichere, dass die Angaben in dieser 
Erklärung nach meinem besten Wissen und 
Gewissen der Wahrheit entsprechen.
An der Erklärung hat mitgewirkt :
 
 
 
Datum und Unterschrift
 
Name/Firma und Adresse
Zeile
Nach amtlichen 
Unterlagen in €
Nach privaten 
Unterlagen in €
1
Einkünfte aus nichtselbständiger 
Erwerbstätigkeit
+
28 800
+
28 800
2
Einkünfte aus selbständiger 
Erwerbstätigkeit 
0
+
200
3 
Einkünfte aus Finanzkapitalanlagen 
 
0
 
0
4
Vorsorgeeinkünfte
-
3 825
-
3 825
5
Ausgaben für berufliche Bildung
0
-
500
6 
Erwerbseinkommen
[Summe: (1) bis (4)]
 
+ 
24 975
+
24 675
7
Verlustvortrag 
0
 
0
8
Schutzzinsen auf Verlustvortrag
0
 
0

---

37
An overview for the merits of micro simulation is given in figure 11. The annual budg-
eting as well as the political program planning (Planning, Programming and Budget-
ing System – PPBS, Zero-Base-Budgeting, Sunset-Legislation) necessitate revenue 
estimation methods for short and mid term projections. Whereas in case of indirect 
taxation traditional econometric regression analysis are often sufficient, for direct 
taxation (income and profit taxation) tax simulation models are needed, which repro-
duce the status quo of the tax and transfer system and are usually based on micro 
date files to be produced by the internal revenue service. Only with such an approach 
the impacts of economic growth, wage and profit trends, inflation and changes in tax 
law (tax reforms) can be determined. Micro simulation can be carried out for the 
whole tax and transfer (social and private insurance schemes) system. With the help 
of such an model it is possible to describe the revenue and expenditure development 
in a short and mid term perspective as well as estimating the effects on the distribu-
tion of gross incomes, the tax yield, transfer payments and the disposable income of 
individuals and households (winner/looser analysis). Reforms can be evaluated be-
fore they are implemented in practice so that internal political discussions are much 
more rationally based.