Die Reform des Dualen Familienlasten- bzw. Familienleistungsausgleichs 1996 / Family Allowances on Equity vs. Efficiency Grounds.: Wirkungen und Ziele einkommensteuerlicher Kinderfreibeträge und des Kindergelds nach altem und neuem Recht / Effects and Objectives of the 1996 Reform of Income Tax Allowances and Transfers to Families in Germany

The article outlines a number of objectives which, in general, could be pursued by public family policies within an otherwise liberal social and economic order. Against this background, the 1996 reform of income tax allowances („Kinderfreibeträge“) and transfers („Kindergeld“) to families in Germany is evaluated. Beyond tax reductions that are required to ensure horizontal equity with respect to income taxation, the effects of these instruments are shown to be mostly consistent with additional equity considerations („Familienlastenausgleich“). Measures which might be taken on efficiency grounds („Familienleistungsausgleich“), however, do not appear to form part of both the present and the old system.