Grundfreibetrag und Einkommensteuertarif — eine Trennung ist möglich

Gregor Schlick

Wirtschaftsdienst, 2013, vol. 93, issue 12, 841-845

Abstract: The basic allowance of the german income tax system is designed to ensure that the minimum subsistence level is not taxed. According to German income tax law, the basic allowance is not deducted from income. Instead, the tax schedule has a zero-rated bracket. Thus, the income tax schedule has a dual function: it determines the tax burden and exempts the subsistence level from taxation. This paper proposes extracting the zero-rated bracket from the tax schedule and deducting a basic allowance directly from income instead. Such a direct deduction of the basic allowance from income would make the constitutionally required exemption of the subsistence level more transparent. At the same time, an independent basic allowance could be increased more easily, without having to change the entire tax schedule. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2013

Keywords: H20; H24 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10273-013-1610-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:wirtsc:v:93:y:2013:i:12:p:841-845

Ordering information: This journal article can be ordered from
http://www.springer. ... policy/journal/10273

DOI: 10.1007/s10273-013-1610-5

Access Statistics for this article

Wirtschaftsdienst is currently edited by Christian Breuer

More articles in Wirtschaftsdienst from Springer, ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().