Einige überlegungen für die ausgestaltung von transferzahlungen an haushalte

Reflections on the Organization of Transfer Payments to Households. — Relatively few studies are extant that deal with the principles governing the redistribution functions of public budgets. This paper shows that neither the principle of general taxation, nor that of non-affection can here be applied. For the purpose of financing redistribution, the population should be classified into those taxed and those benefiting. Transfer payments to those benefiting, or remissions granted in their favour (gross effect) should coincide as far as possible with their actual benefit (net effect), so that taxation need not be unnecessarily increased. It is shown what a redistribution system fulfilling these conditions could look like in cases of loss of income through socially relevant causes (old age, illness, disablement, etc.) and in cases of additional charges (upkeep and education of children). Special stress is laid on determining the “zero line” within such a system. A similar study is undertaken with regard to vertical redistribution among market incomes. In this connection, standards are discussed with the aid of which politicians may render concrete their redistribution ideals. It is described in detail how the various approaches, especially the aims of vertical redistribution, can be combined with an adjustment of income among persons gaining their living and persons unable to do so, and how the whole can be made to form a well-balanced system. Finally, the question is discussed whether there are objective criteria of an optimal extent of redistribution, or whether this is a problem that can only be solved by political decision.