The German Nonlinear Income Tax Scale in Linear Programming Models - Linear Approximations and Error Analysis

  • Michael Heinhold


The field of research concerning taxation is one of Martin Beckmann’s less known topics of scientific activity. In 1970 he has published a study together with G. Uebe on “Makroökonomische Untersuchungen der Auswirkungen von Steuersystemänderungen” [1]. While Beckmann deals with macro-economic taxation models, micro-economic theory uses taxational optimization models only since a short time. The main problem is to be seen in the revenue tariff. Beckmann uses in his macroeconomic study average income tax rates applied to an aggregated macro-economic basis of assessment. In micro-economic planning- models however it is necessary to utilize the exact rates, which arise out of the individual tax base of the taxpayer. As the national tax scales are in general progressive, i. e. the marginal tax rate increases with increasing basis of assessment, such planning models are necessarily non-linear, if the tax base is a decision variable of the model. Because there are still great difficulties in computing large non-linear and mixed integer optimization models, one does find only few applications of operations research models to micro-economic tax planning problems, especially in W.


Piecewise Linear Approximation Maximal Absolute Error Revenue Tariff Operation Research Model Income Interval 
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  1. [1]
    Beckmann, M. J., Uebe, G., Makroökonomische Untersuchungen der Auswirkung von Steuersystemänderungen, Wiesbaden 1970.Google Scholar
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    Siegel, Th., Verfahren zur Minimierung der Einkommen-steuer-Barwertsumme, Betriebswirtschaftliche Forschung und Praxis, 24, 1973, p. 65–80.Google Scholar
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    Heinhold, M., Ein Ansatz zur simultanen Planung von Gewinnausweis, Gewinnausschüttung und Wiedereinlage, Zeitschrift für Betriebswirtschaft, Nr. 9, Vol 52, 1982, p. 846–861.Google Scholar
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    Heinhold, M., Hümmer, H., Storz, P., Quantitative Untersuchungen zum deutschen Einkommensteuertarif, München, 1983.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1984

Authors and Affiliations

  • Michael Heinhold
    • 1
  1. 1.Wirtschaftsuniversität WienWienAustria

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