Cascade effect
The term cascade effect is used as a metaphor for very different processes that are implemented in stages in the sense of a cascade ( Italian cascata , [step by step] waterfall). If a process builds up over several stages and gradually becomes stronger, one also speaks of an avalanche effect.
Energy cascade
One can also speak of the cascade effect in the case of energy cascades, as they occur with turbulence effects in water (cf. turbulent flow ). Furthermore, energy cascades occur in metabolic processes in biological cells, where biochemical energy quanta are gradually released, or in ecological systems in the sense of energy flow . The cascade principle prevents the chemical stored energy that z. B. was built up by photosynthesis, suddenly or unregulated is released again. The diverse biological and ecological processes are only possible through cascade effects.
Electronic, mechanical and biological energy cascades can generally lead to the stabilization of processes (cascade connection). In electrical engineering and control technology, one speaks of cascade connection or series connection of modules or processes (see also cascading ). The cascade effect can, under certain circumstances, achieve a greater effect than with just a single module, e.g. B. in the case of voltage doublers connected in series , which lead to a multiple of the electrical voltage.
Information (signals) are usually not changed by the cascade effect.
Cascades as a disaster trigger
If technical systems or components are connected in series (in electronics one speaks of cascading ) or linked to one another in a way that is difficult to understand, cascade risks arise . This can lead to undesirable or even catastrophic cascade effects which, in terms of their effects, are disproportionate to the often banal trigger. The rupture of the Banqiao Dam in China in August 1975 is considered by far the greatest disaster of its kind in history; it is the special case of the domino effect .
Social cascade
The term cascade effect is also a term used in systemic social work according to Walter Milowiz, which describes a gradually descending social career :
In the "normal case" those affected by a stroke of fate find themselves after some time within their social network in a situation that is comparable to that before the stroke of fate - through the interaction of their own activities and help from the environment. For example, after losing a job, you can find a job again after a while and you can financially bridge the time with or without outside help.
In the worst case, however, the cascade effect occurs: the people affected and their surroundings behave in such a way that the reactions to a stroke of fate trigger further strokes of fate instead of compensating for the previous one, so that the affected people gradually find themselves in an increasingly worse situation.
In our example , the loss of a job could trigger changed behavior (insecurity, aggression, etc.) in the person concerned and cause a partner to leave the person concerned. This divides the circle of friends. In addition, it is often associated with a loss of home. If the person concerned reacts in a similar way as before (insecurity, aggression), further social decline can hardly be stopped: loss of circle of friends, homelessness, neglect, alcoholism, loss of job.
A well-known cascading decline is often the career of an unmarried woman who becomes pregnant: the reduced freedom of movement reduces social contacts and the parental leave period reduces the possibility of staying up-to-date professionally. This reduces professional opportunities while increasing financial needs. The possibility of remaining in the same social circles decreases, which all together usually leads to job loss or professional decline and thus also to social decline. Professional and social decline together, however, usually lead to depression and psychosomatic illnesses, and alcoholism can also follow. This career leads to homelessness or a life on welfare. In this context, the cascade effect is a special form of escalation : The problems and the reactions to them become more and more intense, until a final catastrophe ends the course.
Cascade effect in tax law
Box shareholdings: In corporations that own corporations other than subsidiaries ( holding ), profits of the subsidiary also lead to profits for the mother if the subsidiary distributes the profits to the parent company . Taxing the profits of the daughter and mother would lead to an “avalanche effect”; the longer the investment chain, the greater the tax burden. Since the profit is the basis for the valuation (e.g. for the purposes of inheritance tax) (see also Stuttgart procedure ), the effect would also occur here. A number of tax regulations (e.g. Section 8b KStG ) are intended to prevent this effect.
Sales tax: In April 1967 the first two VAT directives were enacted, which introduced a general, multi-level, but non-cumulative sales tax . This new regulation was welcomed unanimously in finance and business , as the cascade effect has now been avoided. Before that, sales tax was due on every sale. If the entrepreneur bought preliminary products (e.g. batteries from a car manufacturer), he had to pay sales tax on the purchase price. Sales tax was then charged again on the entire car (including the battery). The battery acid purchased from the battery manufacturer was charged a total of 3 times sales tax. The longer the production chain, the more the tax burden rose like a cascade. A high level of vertical integration was favorable for tax purposes; large firms had an advantage over small firms.
Inheritance tax: In the case of inheritance tax , a so-called cascade effect could also occur, through which an unjustified tax exemption could be achieved. According to § 13a i. V. m. Section 13b (2) of the former ErbStG , business assets were not exempt from inheritance tax if the share of administrative assets accounted for more than 50% of the total assets of a business. This could be avoided by a cascade design. For example, if one assumes a business whose assets consist of 600,000 euros (60%) from administrative assets and 400,000 euros (40%) from non-administrative assets, this business is generally not exempt from inheritance tax. If you divide this business assets into two GmbH's, for example, an artificial tax exemption can be created. For this purpose, 400,000 euros of non-administrative assets and 399,999 euros of administrative assets are "parked" in a subsidiary GmbH. Since the share of administrative assets is now less than 50%, the share in this subsidiary GmbH is now not tax-damaging. If the mother GmbH now holds all shares in the subsidiary GmbH (which are now worth 799,999 euros due to the total) and the remaining administrative assets of 200,001 euros, the share of administrative assets in the parent company is now also below 50%, because according to § 13b para 2 No. 2 old version ErbStG, a participation in a GmbH is not administrative assets if one holds more than a quarter of the shares in the subsidiary. Such a design can artificially generate a tax exemption, although this would not have been possible in the original case. The Federal Constitutional Court regards this arrangement as unconstitutional. In response, the legislature passed a new regulation of inheritance and gift tax on November 4, 2016 ( inheritance tax reform ). So far, one was managing asset share of up to 50% harmless and also favored. Now only the beneficiary assets can be exempt from tax, but not the administrative assets. Administrative assets are treated as privileged assets up to a share of 10% of the operating assets (goodwill buffer). However, young administrative assets that are attributable to the company for less than two years are excluded from the exemption. In order to take advantage of the 100% option exemption for the beneficiary assets, the administrative assets may not account for more than 20% of the common value of the business. In addition, if the share of administrative assets is more than 90%, there is no exemption at all, not even for assets that are actually favored.
See also
Individual evidence
- ↑ Walter Milowiz: vicious circle and life path. Thinking systemically in the social field. 2nd, revised edition. Vandenhoeck & Ruprecht 2009.
- ↑ BVerfG, judgment of December 17, 2014, Az. 1 BvL 21/12, 261, 264, full text .
- ↑ BGBl I 2016 p. 2464 announced
- ^ New regulation of inheritance tax - NWB database. Retrieved May 13, 2018 .
