Unified Income Tax: An Incentive or a Disincentive

The solution of a number of problems of Germany in the early XX century is considered. Modernisation of the fiscal system of the German Empire by M. Erzberger allowed to increase budget revenues, its continuation stimulated the growth of investment in the development of the economy. The transition to "fair" income taxation became a disincentive for the most affluent segments of the population. Tax competition of territories due to their fiscal autonomy was overcome by unification of the tax system. The obtained conclusions can be used in Russia.