Verteilungswirkungen und Fallstricke des Faktorverfahrens bei der Lohnsteuer
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Aug 15, 2024
About this article
Published Online: Aug 15, 2024
Page range: 549 - 554
DOI: https://doi.org/10.2478/wd-2024-0143
Keywords
© 2024 Judith Herrmann et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
The German coalition agreement (2021) intends to transform withholding tax class combination III/V for married couples to the symmetric tax class combination IV/IV with a factor, to strengthen economic independence and fairness. The taxation with a factor could eliminate possible disadvantages of tax class combination III/V, particularly the high marginal tax burden in tax class V. The planned reform is associated with several pitfalls. We present the expected reform effects on tax revenues and income distribution, which we calculate using a microsimulation model. We then discuss possible difficulties associated with the reform’s implementation, in particular those concerning individuals employed less than 12 months and sole earners.