in its annual report 2003/2004, the german council of economic experts launched a dual income tax as an option for a fundamental tax reform in germany. in february 2005, the german government appointed the council to prepare a detailed report on economic effects of a business tax reform, with special emphasis on a dual income tax. with regard to the latter, conceptual problems of tax law and of tax administration were to be addressed as well as possible transitional problems when implementing a dual income tax. this book presents an english version of the original report completed in april 2006.