Artikel
Income tax reform to relieve middle income households
Completely eliminating the sharp rise in the tax rate for middle income households in Germany by changing personal income tax rates would mean estimated annual losses in tax revenue of 35 billion euros, or 1.1 percent of GDP. Taxpayers with high incomes would also benefit from this type of relief. The ten percent of the population with the highest income would have a relief of around 10.4 billion euros-over 2,000 euros per taxpayer on average- while middle income taxpayers would benefit to a much lesser extent. With regard to tax burdens or taxable income, the middle and higher income segments would experience more relief than the highest income segment. If high tax revenue losses ought to be avoided and the relief to be focused on middle income taxpayers, tax rates in the upper income segments must be raised. A moderate increase in maximum tax rates would only result in limited extra revenue.
- Language
-
Englisch
- Bibliographic citation
-
Journal: DIW Economic Bulletin ; ISSN: 2192-7219 ; Volume: 7 ; Year: 2017 ; Issue: 20 ; Pages: 193-200 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
- Classification
-
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Taxation and Subsidies: Incidence
Personal Income, Wealth, and Their Distributions
- Subject
-
personal income taxation
tax burden and distribution
tax revenue
- Event
-
Geistige Schöpfung
- (who)
-
Bach, Stefan
Buslei, Hermann
- Event
-
Veröffentlichung
- (who)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
-
Berlin
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Bach, Stefan
- Buslei, Hermann
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2017
Other Objects (12)
Value-added tax cuts bring greatest relief to lower and middle income households
Fundamental Reform of Income Tax: In How Far Can the Assessment Basis Be Broadened and Tax Law Simplified?
The impact of losses on income tax revenue and implicit tax rates of different income sources: evidence from microsimulation using tax statistics for Germany
"The wealth tax reduces income inequality": Seven questions to Stefan Bach
Has German business income taxation raised too little revenue over the last decades?
Optimal top marginal tax rates under income splitting for couples
Inheritance tax: Limit corporate privileges and spread tax burden
Corporate taxation: High profits, moderate tax revenue
100 years of the modern German tax system: Foundation, reforms, and challenges
"Relief for the middle class through value-added tax cuts": Six questions for Stefan Bach
From bottom to top: the entire distribution of market income in Germany, 1992 - 2001
From Bottom to Top: The Entire Distribution of Market Income in Germany, 1992 - 2001
Value-added tax cuts bring greatest relief to lower and middle income households
Fundamental Reform of Income Tax: In How Far Can the Assessment Basis Be Broadened and Tax Law Simplified?
The impact of losses on income tax revenue and implicit tax rates of different income sources: evidence from microsimulation using tax statistics for Germany
"The wealth tax reduces income inequality": Seven questions to Stefan Bach
Has German business income taxation raised too little revenue over the last decades?
Optimal top marginal tax rates under income splitting for couples
Inheritance tax: Limit corporate privileges and spread tax burden
Corporate taxation: High profits, moderate tax revenue
100 years of the modern German tax system: Foundation, reforms, and challenges
"Relief for the middle class through value-added tax cuts": Six questions for Stefan Bach
From bottom to top: the entire distribution of market income in Germany, 1992 - 2001
From Bottom to Top: The Entire Distribution of Market Income in Germany, 1992 - 2001
Value-added tax cuts bring greatest relief to lower and middle income households
Fundamental Reform of Income Tax: In How Far Can the Assessment Basis Be Broadened and Tax Law Simplified?
The impact of losses on income tax revenue and implicit tax rates of different income sources: evidence from microsimulation using tax statistics for Germany
"The wealth tax reduces income inequality": Seven questions to Stefan Bach
Has German business income taxation raised too little revenue over the last decades?
Optimal top marginal tax rates under income splitting for couples
Inheritance tax: Limit corporate privileges and spread tax burden
Corporate taxation: High profits, moderate tax revenue
100 years of the modern German tax system: Foundation, reforms, and challenges
"Relief for the middle class through value-added tax cuts": Six questions for Stefan Bach
From bottom to top: the entire distribution of market income in Germany, 1992 - 2001