Germany's Consumption Tax Reform Yields Surprisingly Low Revenue Losses.
The study looked at how changing the tax system in Germany to focus more on consumption tax would affect tax revenue. Surprisingly, the researchers found that the revenue losses would be quite low, with a maximum loss of 1.6% of the country's annual GDP. In some years, there might even be a gain in tax revenue. This suggests that the current tax system in Germany doesn't bring in much money from taxing normal capital income.