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The removal of the middle class bulge - models and costs

Author

Listed:
  • Florian Dorn
  • Clemens Fuest
  • Björn Kauder
  • Luisa Lorenz
  • Martin Mosler
  • Luisa Dörr

Abstract

The Ifo Institute prepared a study on the income tax burden of middle-class income earners in Germany (the so-called "middle-class bulge") on behalf of the Initiative Neue Soziale Marktwirtschaft (INSM). The middle-class bulge gives rise to swiftly rising marginal tax rates. As a result, middle-class income earners are often considered to be the social group most heavily impacted by taxes and duties. The study entitled: "The removal of the middle class bulge - models and costs" – prepared by the Ifo Center for Public Finance and Political Economy – presents income tax reform options and quantifies their impact on tax payers and public budgets, using the Ifo income tax simulation model (Ifo-ESM).

Suggested Citation

  • Florian Dorn & Clemens Fuest & Björn Kauder & Luisa Lorenz & Martin Mosler & Luisa Dörr, 2017. "The removal of the middle class bulge - models and costs," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 77.
    • Handle: RePEc:ces:ifofob:77
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    File URL: https://www.ifo.de/DocDL/ifo_Forschungsberichte_77_2016_Dorn-Fuest_Mittelstandsbauch.pdf
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    References listed on IDEAS

    as
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    23. Clemens Fuest & Björn Kauder & Luisa Lorenz & Martin Mosler & Niklas Potrafke & Florian Dorn, 2016. "Hidden tax increases - the extra tax burden of the bracket creep and the expected impact of income tax rates "on wheels" on tax reliefs," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 76, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Florian Dorn & Clemens Fuest & Björn Kauder & Luisa Lorenz & Martin Mosler & Potrafke. Niklas & Luisa Dörr, 2017. "Die Kalte Progression – Verteilungswirkungen eines Einkommensteuertarifs auf Rädern," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(03), pages 28-39, February.
    2. Florian Dorn & Clemens Fuest & Fabian Häring & Björn Kauder & Luisa Lorenz & Martin Mosler & Luisa Dörr, 2017. "Die Beseitigung des Mittelstandsbauchs – Reformoptionen zur Einkommensteuer und ihre fiskalischen Kosten," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(09), pages 31-38, May.
    3. Bernd Hayo & Florian Neumeier, 2023. "Between fearmongers and Samaritans: Does information provision affect attitudes towards the right of asylum in Germany?," Kyklos, Wiley Blackwell, vol. 76(4), pages 749-777, November.
    4. Florian Dorn & Björn Kauder & Manuela Krause & Niklas Potrafke, 2017. "Die Erbschaftsteuer in Deutschland – Reformbedarf und Reformkompromiss," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(01), pages 33-40, January.
    5. Lemmer, Jens, 2017. "Leistungsfeindlicher Mittelstandsbauch: Gerechtigkeitslücke im Einkommensteuertarif schließen," DSi kompakt 27, DSi - Deutsches Steuerzahlerinstitut des Bundes der Steuerzahler e.V., Berlin.
    6. Florian Dorn & Stefanie Gäbler & Björn Kauder & Manuela Krause & Luisa Lorenz & Niklas Potrafke, 2017. "Einkommensteuer in Deutschland – besteht eine Reformnotwendigkeit?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(15), pages 31-37, August.
    7. Maximilian Joseph Blömer & Luisa Dörr & Clemens Fuest & Martin Mosler & Andreas Peichl & Niklas Potrafke, 2019. "Was bei einer Reform des Solidaritätszuschlags zu beachten ist," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(16), August.
    8. Lemmer, Jens, 2017. "Reformbedürftiger Spitzensteuersatz: Leistungsanreize für Normalverdiener im Einkommensteuertarif stärken," DSi kompakt 30, DSi - Deutsches Steuerzahlerinstitut des Bundes der Steuerzahler e.V., Berlin.
    9. Florian Dorn & Clemens Fuest & Björn Kauder & Luisa Lorenz & Martin Mosler & Niklas Potrafke & Luisa Dörr, 2017. "Steuererhöhungen durch die Hintertür – fiskalische Aufkommenswirkungen der Kalten Progression," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(02), pages 51-58, January.
    10. Clemens Fuest & Stefanie Gäbler & Björn Kauder & Luisa Lorenz & Martin Mosler & Luisa Dörr, 2017. "Reform of the income tax: the rate of the Federal State of Lower Saxony," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 82.
    11. Dieter Dziadkowski, 2018. "Plädoyer für eine realitätsnahe Architektur des Einkommensteuertarifs," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(11), pages 35-47, June.

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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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