Reform of income splitting for married couples: Only individual taxation significantly increases working incentives

Artikel

The joint taxation of married couples in Germany with full income splitting is still a major hindrance to the participation of married women in the labor market. In their current financial proposals, the SPD (Social Democratic Party) is calling for income splitting for married couples to be replaced by individual taxation with maintenance deductions, in accordance with existing schemes for divorced spouses. Simulations implemented by DIW Berlin show that such a reform would only have limited effects on distribution and labor supply. Pure individual taxation, however, would not only lead to significant additional tax revenue but would also considerably increase the number of married women participating in the labor market. If politicians take the goal of greater integration of married women in the labor market seriously, then the current income splitting for married couples would have to be replaced by individuation taxation.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: DIW Economic Bulletin ; ISSN: 2192-7219 ; Volume: 1 ; Year: 2011 ; Issue: 5 ; Pages: 13-19 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Fiscal Policies and Behavior of Economic Agents: Household ; Time Allocation and Labor Supply
• Thema: working incentives ; joint taxation of couples ; female labor supply

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bach, Stefan ; Geyer, Johannes ; Haan, Peter ; Wrohlich, Katharina
• Ereignis: Veröffentlichung
• (wer): Deutsches Institut für Wirtschaftsforschung (DIW)
• (wo): Berlin
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/57685
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ