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Verteilungswirkungen und Fallstricke des Faktorverfahrens bei der Lohnsteuer

Author

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  • Herrmann Judith

    (Judith Herrmann ist wissenschaftliche Mitarbeiterin am Fraunhofer-Institut für Angewandte Informationstechnik FIT in Sankt Augustin.)

  • Teuber Martin

    (Martin Teuber ist dort Leiter der Gruppe Besteuerung.)

  • Calahorrano Lena

    (Dr. Lena Calahorrano ist dort stellvertretende Abteilungsleiterin.)

Abstract

The German coalition agreement (2021) intends to transform withholding tax class combination III/V for married couples to the symmetric tax class combination IV/IV with a factor, to strengthen economic independence and fairness. The taxation with a factor could eliminate possible disadvantages of tax class combination III/V, particularly the high marginal tax burden in tax class V. The planned reform is associated with several pitfalls. We present the expected reform effects on tax revenues and income distribution, which we calculate using a microsimulation model. We then discuss possible difficulties associated with the reform’s implementation, in particular those concerning individuals employed less than 12 months and sole earners.

Suggested Citation

  • Herrmann Judith & Teuber Martin & Calahorrano Lena, 2024. "Verteilungswirkungen und Fallstricke des Faktorverfahrens bei der Lohnsteuer," Wirtschaftsdienst, Sciendo, vol. 104(8), pages 549-554.
    • Handle: RePEc:vrs:wirtsc:v:104:y:2024:i:8:p:549-554:n:1014
    DOI: 10.2478/wd-2024-0143
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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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