German Tax Cut Lifted Spending

GermanyLower-wealth households responded most to Germany’s 2020 value-added tax cut.

Younger and middle-aged households also responded, regardless of financial literacy, the study found.

Researchers combined survey data, retail purchases and an economic model to measure the 19%-to-16% cut.

Its evidence covers one six-month cut, not a permanent one.

Sources: Phys.org