Manuela Krause, Niklas Potrafke

The Real Estate Transfer Tax and Government Ideology: Evidence from the German States

Section: Articles
FinanzArchiv (FA)

Volume 76 () / Issue 1, pp. 100-120 (21)
Published 21.08.2019

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Since 2007 the German state governments have been allowed by a constitutional reform to set real estate transfer tax rates. We exploit this reform and investigate whether government ideology predicts the levels and increases in the real estate transfer tax rates. The results show that left wing and center governments were more active in increasing the real estate transfer tax rates than right wing governments. Many voters were disenchanted with the policies and platforms of the established German parties. Disenchantment notwithstanding, real estate transfer tax policies show that the established political parties are still prepared to offer polarized policies.

Manuela Krause No current data available.

Niklas Potrafke No current data available.