Steuergrundsätzen

Steuergrundsätzen, or tax principles, are fundamental concepts that guide the design and implementation of tax systems. These principles ensure fairness, efficiency, and predictability in taxation. Key principles often include equity, which means that taxpayers with similar financial capacity should pay similar amounts of tax, and proportionality, suggesting that the tax burden should increase with the ability to pay.

Another important principle is economic neutrality, aiming to minimize distortions in economic decisions. Taxes should ideally not influence whether people work, save, or invest in a way that is detrimental to economic efficiency. Simplicity and clarity are also crucial, making tax laws understandable for citizens and businesses, thereby reducing compliance costs and the potential for evasion.

Sufficiency and predictability are also core tenets. A tax system must generate sufficient revenue to fund public services, and its rules should be stable and predictable to allow for long-term financial planning by individuals and corporations. Finally, administrative feasibility is essential, meaning that the tax system should be practical to administer and enforce by tax authorities without excessive costs or complexity. These principles, while sometimes in tension with each other, form the bedrock of sound tax policy worldwide.