Biontech’s Tax Booster and Its Impact on Intergovernmental Fiscal Relations
Abstract The Mainz-based vaccine manufacturer Biontech has had incredible business development in 2021, which has led to a soaring increase in the state of Rhineland-Palatinate’s tax revenues. As a result, Rhineland-Palatinate, which was considered financially weak, is now one of the strongest state...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | deu |
| Published: |
Sciendo
2022-02-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-022-3115-6 |
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| Summary: | Abstract The Mainz-based vaccine manufacturer Biontech has had incredible business development in 2021, which has led to a soaring increase in the state of Rhineland-Palatinate’s tax revenues. As a result, Rhineland-Palatinate, which was considered financially weak, is now one of the strongest states in Germany and thus is included among the donor states in the financial equalisation system. Such a sharp increase in financial power, however, leads to significant fiscal spillovers that may ultimately result in problematic distributional outcomes. Taking the complex structure of the German fiscal federalism system into account, the authors examine the fiscal consequences of the tax increase from Biontech and come to quite surprising results, especially for the Rhineland-Palatinate state budget. |
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| ISSN: | 0043-6275 1613-978X |