Abbau der kalten Progression: nüchterne Analyse geboten
Katja Rietzler (),
Dieter Teichmann () and
Achim Truger ()
Wirtschaftsdienst, 2014, vol. 94, issue 12, 864-871
The call for indexing the German income tax schedule to inflation in order to eliminate bracket creep has become widespread in the German tax policy debate. While it is indeed problematic that tax rates rise even when real incomes remain constant, the authors show that currently this is no reason for tax cuts. Changes in both the tax schedule and deductible allowances have more than offset the effects of bracket creep for most taxpayers since 1991. This is illustrated with calculations for a range of constant real incomes and family constellations. However, as the relative tax relief since 1991 has strongly favoured top incomes, a reform of the tax schedule that raises the top tax rate while providing some tax relief for lower and medium incomes may be justified. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2014
Keywords: H11; H24; K34 (search for similar items in EconPapers)
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